2 Nuclear Energy Stocks to Buy in September

The article highlights Cameco and BWX Technologies as beneficiaries of the “nuclear renaissance,” with Westinghouse’s confidential Form S-1 filed July 31 providing a potential transparent valuation and capital-raising catalyst for Cameco. Cameco’s Cigar Lake and McArthur River mines produced 19M and 15M lbs of uranium in 2023, while its secured deliveries total over 28M lbs over the next five years; analysts project EPS up 69% in 2027 and another 26% in 2028. BWXT, sole nuclear fuel/provider for U.S. Navy propulsion, won $1.4B of naval propulsion contracts (May 7) and acquired Precision Components Group (closed July 6), adding 500,000 sq ft of manufacturing capacity, after shares fell 33% from a 52-week high.

Analysis

The immediate trade is less about “nuclear is good” and more about which part of the value chain has real pricing power versus narrative beta. CCJ is the cleaner commodity lever, but near-term upside depends on utilities re-contracting at higher replacement prices; if term contracting stays sticky, the stock can underperform the macro story even while the theme stays intact. BWXT is structurally more defensive because backlog and government funding reduce earnings volatility, but that also means the market can keep compressing the multiple if investors decide defense budgets are already embedded.

The second-order winner is the broader nuclear supply chain, especially names tied to engineering, components, and fuel services that can monetize capex before new reactors actually come online. The risk is that the market extrapolates AI data-center demand into immediate revenue, when the actual conversion path is measured in permits, financing, and multi-year build cycles; that usually creates a gap between sentiment and reported fundamentals. A weak or delayed Westinghouse IPO would matter not because it changes the secular thesis, but because it would signal that private-market appetite for nuclear capex is less robust than bulls assume.

Contrarian view: the move may be too early rather than too small. Over the next 1-3 months, the main catalysts are financing headlines, contract awards, and any indication that uranium contracting or Navy procurement cadence is slowing; absent that, the stocks can drift with rates and risk appetite. Over 6-18 months, the real falsifier is not the theme failing, but execution lag: if free cash flow does not inflect while valuations remain elevated, multiples can de-rate even in a constructive sector.

Key Decisions for Investors

• Initiate a tactical long CCJ on pullbacks over the next 1-3 weeks; target a 3-6 month hold into Westinghouse IPO/financing headlines, with the thesis broken if uranium contracting momentum stalls or guidance is trimmed.
• Hold BWXT as the higher-quality, lower-beta nuclear exposure; consider a long BWXT / short SMR or OKLO pair for 6-12 months to express preference for existing backlog and federal demand over speculative reactor narratives.
• If entering BWXT here, use call spreads rather than outright stock for the next 3-6 months to limit multiple-compression risk; the setup improves if defense procurement commentary remains stable into the next budget cycle.
• Set an alert on Westinghouse IPO timing and pricing: a strong filing/pricing is a positive re-rating catalyst for CCJ, while delay or weak terms is a signal to cut exposure to the whole nuclear basket.