Where to Trade 3 Hot Nuclear Energy Stocks Amid Big Tech Embrace
As the political landscape shifts in the United States with the upcoming administration change, the focus on energy production is increasingly coming into the spotlight. Former President Trump’s administration was characterized by a pro-energy stance, and it’s anticipated that an emphasis on energy will carry over into the next term. Notably, nuclear energy is gaining traction among renowned tech leaders, with Elon Musk of Tesla (TSLA) and SpaceX standing out as an ardent advocate. Musk has openly criticized past efforts to close nuclear power facilities, labeling them as “total madness.” This sentiment is echoed by major tech giants like Amazon (AMZN), Alphabet (GOOGL), and Microsoft (MSFT), who are investing heavily in nuclear energy to support the growing demands of AI-driven data centers.
For instance, Microsoft has recently made headlines with a partnership leading to the potential reopening of the infamous Three Mile Island nuclear plant in Pennsylvania, emphasizing the importance of nuclear energy for future technological advancements. Given the rising energy requirements of these industrial leaders, let’s explore some of the hottest names in the nuclear sector.
1. GE Verona (GEV)
GE Verona (GEV) is General Electric’s power spinoff, having begun trading as a standalone entity in April. Recent performance indicates significant growth, with shares hitting their highest level this year. For traders considering their position in GE Verona, a pullback to the $300 area presents an optimal entry point, aligning with the stock’s 50-day moving average and a bullish trend line. It’s advised that traders initiate a small position now while remaining poised to increase their stake if the price retreats to $300. However, if the stock breaks below both the moving average and the trend line, it would be prudent to limit losses.
GRADE: B
2. BWX Technologies (BWXT)
Next up is BWX Technologies (BWXT), located in Lynchburg, Virginia, which specializes in supplying nuclear reactor components and fuel. This stock has enjoyed a remarkable 74.5% gain year-to-date, culminating in a 52-week high recently. BWX Technologies has a rich history in the naval nuclear sector, having been at the forefront since the 1950s, including contributions to the world’s first nuclear-powered submarine, the USS Nautilus. Importantly, the stock’s relative strength index (RSI) suggests it is not currently overbought. Earlier this month, BWX Technologies exceeded earnings expectations by 7.65% and surpassed revenue projections by 2%. This consistent performance in a vital industry marks BWX Technologies as a compelling investment option.
GRADE: B+
3. NuScale Power (SMR)
Oregon-based NuScale Power (SMR) specializes in designing and marketing small modular reactors, a segment of the nuclear industry experiencing explosive growth. This stock has skyrocketed by an astonishing 781% year to date, highlighting its remarkable momentum. However, there’s a critical caveat to consider: while the stock price has steadily increased, its trading volume has shown a declining trend over the last month. This disparity suggests that while NuScale is in a strong sector with considerable investor interest, buyers must be cautious and agile, given the heightened risk of a potential stock pullback. The positioning of NuScale as a momentum play means it could appeal to aggressive traders seeking significant gains in a bustling market.
GRADE: A
Conclusion
As the demand for energy escalates and tech leaders pivot toward nuclear as a sustainable solution to their burgeoning energy needs, stocks like GE Verona, BWX Technologies, and NuScale Power represent promising investments in the nuclear energy landscape. Investors should remain vigilant and consider technical analysis when assembling their portfolios in this emerging sector. With the collective drive towards nuclear energy by tech giants, the future of these stocks appears optimistic—provided traders stay mindful of market movements and responsive to changes.