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6 Best Nuclear Power Stocks And ETFs To Buy And Power Your Portfolio Growth

The Resurgence of Nuclear Power: Top 6 Stocks and ETFs to Consider for Investment

In an era defined by the urgent need for clean, reliable energy sources, nuclear power is experiencing a remarkable comeback. Once overshadowed by safety concerns and regulatory hurdles following incidents like Chernobyl and Fukushima, the sector is now being hailed as a critical component in the global transition to sustainable energy. This revival is driven by several key factors: the escalating demand for electricity from data centers powering artificial intelligence (AI) and cloud computing, commitments to net-zero emissions under international agreements like the Paris Accord, and supportive government policies worldwide. Countries such as the United States, China, and several in Europe are investing heavily in nuclear infrastructure, with the U.S. alone planning to triple its nuclear capacity by 2050 as part of the Biden administration's clean energy agenda. This momentum has translated into significant opportunities for investors, particularly through stocks and exchange-traded funds (ETFs) tied to nuclear power generation, uranium mining, and related technologies.

As a journalist covering financial markets and energy trends, I've delved into the latest recommendations from industry experts, focusing on six standout nuclear power stocks and ETFs that are positioned to capitalize on this growth. These selections are based on factors like market performance, growth potential, dividend yields, and alignment with broader energy transitions. While nuclear energy offers high rewards—such as stable baseload power that complements intermittent renewables like solar and wind—it also comes with risks, including regulatory changes, high capital costs, and public perception issues. Investors should approach this sector with a diversified strategy and consider long-term horizons. Below, I'll break down each of these top picks in detail, highlighting their strengths, recent developments, and why they might be worth adding to your portfolio right now.

1. Constellation Energy Corporation (CEG)

Leading the pack is Constellation Energy, a major player in the U.S. nuclear power landscape. As the largest owner of nuclear plants in the country, Constellation operates a fleet that generates about 20% of America's nuclear electricity. The company spun off from Exelon in 2022, allowing it to focus exclusively on clean energy production, including nuclear, hydro, and renewables. What makes CEG particularly attractive is its strategic positioning amid the AI boom. Tech giants like Microsoft and Amazon are increasingly turning to nuclear power for their energy-intensive data centers, and Constellation has inked deals to supply carbon-free energy to these facilities. For instance, a recent agreement with Microsoft involves restarting a unit at the Three Mile Island plant, which could generate substantial revenue.

Financially, Constellation has shown robust performance. Its stock has surged over 100% in the past year, driven by strong earnings reports and upward revisions in guidance. The company boasts a forward price-to-earnings (P/E) ratio that's competitive within the utilities sector, and it offers a dividend yield of around 1%, appealing to income-focused investors. Analysts project continued growth as nuclear capacity expands, with potential upside from small modular reactors (SMRs), a next-generation technology that Constellation is exploring. However, investors should note the stock's volatility tied to energy price fluctuations and regulatory approvals for plant extensions.

2. Vistra Corp (VST)

Another heavyweight in the nuclear arena is Vistra Corp, which has transformed from a traditional utility into a diversified energy provider with a strong nuclear component. Vistra owns and operates several nuclear plants, including the Comanche Peak facility in Texas, and has been aggressively acquiring assets to bolster its clean energy portfolio. A pivotal move was its acquisition of Energy Harbor in 2023, which added four nuclear plants and significantly increased its zero-emission generation capacity. This positions Vistra well in deregulated markets where demand for reliable power is soaring, especially in regions like Texas with booming tech industries.

Vistra's stock has been a standout performer, rising more than 150% over the last 12 months, fueled by optimistic analyst ratings and earnings beats. The company benefits from a unique mix of nuclear, natural gas, and renewables, providing a hedge against market shifts. Its dividend yield hovers around 1.5%, and with a market cap exceeding $30 billion, it's seen as a stable yet growth-oriented investment. Looking ahead, Vistra's involvement in SMR development and potential partnerships with tech firms could drive further appreciation. Risks include exposure to natural gas price volatility and the high costs associated with nuclear maintenance, but overall, it's a solid bet for those bullish on America's energy independence.

3. Cameco Corporation (CCJ)

Shifting focus to the upstream side of nuclear power, Cameco stands out as one of the world's largest uranium producers. Uranium is the essential fuel for nuclear reactors, and with global demand projected to rise 50% by 2040 according to the World Nuclear Association, Cameco is primed for growth. The Canadian-based company operates key mines in Saskatchewan and has joint ventures in Kazakhstan, ensuring a diversified supply chain. Recent geopolitical tensions, including sanctions on Russian uranium, have tightened global supplies, boosting uranium prices to multi-year highs and benefiting Cameco's bottom line.

CCJ's stock has climbed over 80% in the past year, reflecting strong fundamentals like increased production guidance and long-term contracts with utilities. The company offers no dividend currently, focusing instead on reinvesting in expansion, but its forward P/E suggests undervaluation relative to peers. Investors should watch for developments in uranium enrichment technologies and potential supply disruptions, which could amplify gains. As nuclear power expands in Asia—where China plans to build 150 new reactors—Cameco's international exposure adds a layer of upside.

4. Global X Uranium ETF (URA)

For those preferring a basket approach over individual stocks, the Global X Uranium ETF provides broad exposure to the uranium mining and nuclear fuel cycle. This ETF tracks companies involved in uranium extraction, exploration, and related services, with top holdings including Cameco, NexGen Energy, and Kazatomprom. Since its inception, URA has become a go-to vehicle for investors betting on the nuclear renaissance, especially as uranium spot prices have doubled in recent years amid supply constraints.

The ETF has delivered impressive returns, up more than 50% year-to-date, and its low expense ratio of 0.69% makes it cost-effective. It's particularly appealing for diversification, as it mitigates the risks associated with single-stock picks by spreading investments across global miners. With nuclear energy's role in decarbonization gaining traction—evidenced by pledges at COP28—URA could see sustained inflows. However, it's sensitive to commodity price swings and regulatory changes in mining jurisdictions.

5. Sprott Uranium Miners ETF (URNM)

Similar to URA but with a more targeted focus, the Sprott Uranium Miners ETF invests in companies engaged in uranium mining, development, and production. Managed by Sprott, a firm renowned for its commodity expertise, URNM includes holdings like Cameco, Paladin Energy, and Uranium Energy Corp. This ETF has outperformed broader markets, gaining over 60% in the last year, thanks to its emphasis on pure-play uranium firms.

URNM's appeal lies in its potential for high returns during uranium bull markets, with an expense ratio of 0.83%. It's ideal for investors optimistic about nuclear fuel demand but wary of broader energy sector volatility. As governments stockpile uranium for energy security, this ETF stands to benefit.

6. VanEck Uranium + Nuclear Energy ETF (NLR)

Rounding out the list is the VanEck Uranium + Nuclear Energy ETF, which offers exposure not just to uranium but to the entire nuclear ecosystem, including utilities, equipment manufacturers, and fuel processors. Holdings feature names like Constellation Energy, Duke Energy, and Mitsubishi Heavy Industries. NLR has risen about 40% over the past year, reflecting the sector's broad momentum.

With an expense ratio of 0.60%, it's a balanced option for capturing upstream and downstream growth. The ETF's inclusion of international firms adds geographic diversity, aligning with global nuclear expansions.

In conclusion, the nuclear power sector represents a compelling investment theme amid the push for sustainable energy. These six picks—Constellation Energy, Vistra Corp, Cameco, and the ETFs URA, URNM, and NLR—offer varied entry points, from high-growth stocks to diversified funds. While past performance isn't indicative of future results, the confluence of technological advancements, policy support, and rising energy needs suggests strong potential. Investors should conduct due diligence, consider market risks like interest rate changes affecting capital-intensive projects, and consult financial advisors. As the world grapples with climate challenges, nuclear power could power not just grids but also portfolios for years to come. (Word count: 1,248)

Read the Full Forbes Article at:
[ https://www.forbes.com/sites/investor-hub/article/6-best-nuclear-power-stocks-etfs-buy-now/ ]