Five Best Uranium Stocks To Buy Now

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Uranium is a rare element used to fuel nuclear power plants. The demand for uranium has reached the highest price levels since 2014 and continues to rise. That has reacted a rigorous impact among the uranium stocks.

Uranium stocks have been pretty hot in recent times. The long-term demand for uranium continued to grow as developing and emerging economies opt for nuclear fuel to solve their energy problems. As a consequence, the global demand for uranium was close to $242 million in 2020. The expected growth of the uranium market is set to cross $270 million in the next five years.

This has created a buzz among investors, especially the Wall Street craze has investors focused on the best uranium stocks. Companies that deal in the heavy metal uranium business are growing in value. The growth in uranium stocks can be swift. You need to keep an eye on them and buy in the dip. We have compiled the best uranium stocks that can give you huge returns.

Uranium Royalty Corp. (UROY)

Uranium Royalty Corp. (UROY) is a Canada-based company that makes investments in uranium-related royalties, streams, debt, and equity. UROY stock has returned more than 360% to investors over the course of the past twelve months.

As the name is enough, Uranium Royalty is a pure-play uranium invested company. Some of the projects that the firm holds royalty interests in include Church Rock, Dewey-Burdock, Lance, Roca Honda, Reno Creek, Roughrider, and Michelin, among others.

Uranium Royalty recently signed contracts for additional four spot purchases of U308. Purchasing an average cost of $45 per pound of U308, the company bought a total of 400,000 pounds of U3O8. The deliveries will be accomplished in the last quarter of this year. That means UROY’s physical inventory of U308 will increase up to 1,048,068 pounds. The inventory storage accounts at a weighted average cost of $37.64 per pound. The latest Trade Tech daily spot price is at US$47.25 per pound as of October 18, 2021, leading to an increase in the net realizable value of URC’s physical uranium holdings to $10.07 million.

With strong market holding power, the company will gain massive returns will increasing demand and high prices in the market. Moreover, Uranium Royalty is expanding its operations with the acquisition of royalty interests.

UROY stock seems a hot stock in the market and you must keep an eye on that.

Rio Tinto Group (RIO)

Rio Tinto Group (RIO) engages in exploring, mining, and processing mineral resources worldwide. The company offers metals and minerals, which also include uranium. RIO stock has plummeted to its 52-week lows and is on the bearish side at the moment. However, it seems to be the perfect time to pick up the stock as we see the past trends of it.

The dip in price gives you the option to risk and go for higher gains as the stock is in the more upside position.

Rio Tinto recently collaborated with BlueScope and both the companies will work on the exploration of low-carbon steelmaking pathways using Pilbara iron ores. Rio is focusing on learning new ways and exploring ideas that would help the firm grow. Both the firms will do research and design low-emissions processes for the steel value chain. Which will include iron ore processing, iron and steelmaking, and related technologies.

Moreover, Rio has progressed with the collection of Argyle Pink Diamonds. In 2021, the company has over 70 rare pink and red diamonds from its Argyle mine in Australia. That’s record-breaking results in Rio’s 38-year history.

Good developments are taking place for Rio Tinto on instances. RIO stock needs a good piece of news and it will pump back. Exane BNP Paribas has rated the stock to outperform.

Lightbridge Corporation (LTBR)

Lightbridge Corporation (LTBR), together with its subsidiaries, develops nuclear fuel technology under the Lightbridge Fuel name. LTBR shareholders have gained 154.14% in the last 12 months. Just like other uranium stocks, there is a lot of buzz around LTBR which can give gains in little time.

Lightbridge is very active in the market and has a couple of key patents in the U.S. and Australia. The company recently received a Notice of Allowance for a key divisional patent from the U.S. Patent Office. The patent is related to Lightbridge’s innovative metallic nuclear fuel assembly.

As governments recognize the importance of maintaining the existing nuclear fleet, this patent approval will strengthen Lightbridge’s intellectual property portfolio. That supports its strategy to commercialize Lightbridge Fuel in the U.S.

Lightbridge is working on global expansion and with that, the company has received a similar Notice of Acceptance for a key divisional patent from the Australia Patent Office. Australia is one of the leading uranium producers and increasingly considering pursuing nuclear power generation. So, the Australian patent is a big achievement for the company. Similarly, Lightbridge has gained patents in Japan and Korea – part of its global expansion plan.

With strong development in the market, LTBR stock is on the investor’s radar. Therefore, keep an eye on it.

Energy Fuels (UUUU)

Energy Fuels (UUUU) is a popular uranium mining company and holds a major portion of the market. The company is valued at over $1.5 billion and has returned nearly 140% to its inventors in the last 12 months.

Energy Fuels have expanded in recent years, emerging as a player in the commercial rare earth business. The core business of the firm remains the extraction, recovery, exploration, and sale of uranium.

UUUU stock is trading at its 52-weeks high and the current sentiment around the stock is pretty bullish. It wouldn’t be rational to invest in UUUU right now as the RSI is over 72. Well, keep an eye on the stock and buy in the dip.

Energy Fuels’ third-quarter report surpassed consensus estimate on sales. Analysts predicted Energy Fuels would report a $0.02 per share loss on sales of just $700,000. As it turned out, though, Energy Fuels beat expectations on the top line with sales of $715,000. That has pushed the stock price in recent days. The rising price of mined uranium and also the company’s recent foray into mining rare earth metals, helped the revenues soar higher.

We will see UUUU stock return back to its normal price range once the bullish sentiment goes off. That would be the time to pick shares of Energy Fuels. With rising demands, the company will generate more revenues in the future. Therefore, UUUU stock would be a decent pick around its support levels.

Uranium Energy Corp. (UEC)

Uranium Energy Corp. (UEC) is a pure-play uranium-based company that engages in the exploration, extraction, and processing of uranium and titanium concentrates. UEC operates mainly in the U.S., Canada, and Paraguay. Uranium Energy is a well-established player in the market. UEC stock has soared nearly 160% in the last 12 months.

Uranium Energy has recently touched its 52-week highs, following the bullish momentum in the uranium stocks. According to market experts and analysts, uranium spot prices could rise as high as $60 a pound by the first quarter of 2021. Therefore, we can see uranium stocks going even higher in the next year. Surely, UEC will follow the market trend being a key stock in the sector.

Uranium Energy understands that the sudden increase in demand will not slow down anytime soon. It’s the global energy demand that has soared and the governments are involved in this. Considering that, UEC has expanded its physical portfolio of U.S. warehoused uranium to 4.1 million pounds. That results in an average cost of $32 per pound with various delivery dates through December 2025. While the market spot prices are rising continuously.

UEC is well-positioned with a strong balance sheet. The company has $235.4 million of cash and liquid assets. That comprises $96.4 million in cash, 82.3 million in equity holdings, and $56.7 million in physical inventories. This solidifies UEC’s strong position in the uranium sector.

UEC is one of the main stocks that you should buy on a dip.

Uranium market had a decade-long bear market. The sudden rise in demand has attracted everyone. That’s exciting for investors and it seems to be positive for the market.

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