3 Uranium, Nuclear Energy Stocks to Keep an Eye On

Nuclear-related stocks, including Cameco (CCJ) and Uranium Energy Corp (UEC), are experiencing significant rallies, with both hitting new record highs (up 10% and 10.7% respectively) following the U.S. Energy Secretary's plan to increase the national strategic uranium stockpile. UEC also presents short-squeeze potential, while NuScale Power (SMR), a small module reactor developer, rose 6.6% on RBC coverage, benefiting from anticipated downstream demand within the sector's positive momentum. This indicates strong market reaction to policy support for the nuclear energy supply chain.

Analysis

A U.S. government announcement to increase the national strategic uranium stockpile has acted as a significant catalyst for the nuclear energy sector, prompting sharp upward movements in related equities. Uranium miners have responded immediately, with Cameco Corp. (CCJ) surging 10% to a new record high of $85.94, extending its 2025 gains to 65.4%. Notably, options markets are pricing in low volatility for CCJ, with its Schaeffer's Volatility Index (SVI) at 43%, despite its history of outperforming such expectations, suggesting the market may be underpricing the potential for further movement. Similarly, Uranium Energy Corp. (UEC) rose 10.7% to a record high, bringing its year-to-date performance to a 94.5% gain. UEC presents a distinct short-squeeze potential, as 11.7% of its available float remains sold short, which could fuel further price appreciation. Downstream, small module reactor developer NuScale Power (SMR) gained 6.6%, influenced by RBC initiating coverage with a 'sector perform' rating. SMR's situation is more nuanced; despite finding technical support at its 100-day moving average, a majority of analysts (9 of 14) maintain 'hold' or worse ratings and its consensus price target of $39.44 implies limited immediate upside, creating a scenario where positive analyst revisions could serve as a future catalyst.

Key Decisions for Investors

• Given Cameco's low implied volatility paired with its history of outperforming volatility expectations, bullish investors may find options strategies relatively attractive to position for further upside.
• Investors in Uranium Energy Corp. should monitor short interest data and trading volume, as the stock's 11.7% short-float presents significant short-squeeze potential that could amplify gains.
• For NuScale Power, the key catalyst to watch for is a potential wave of analyst upgrades, as current price momentum is outpacing a largely neutral consensus rating, which could unlock further appreciation.
• The primary driver for the sector is the US policy on its uranium stockpile, so investors should closely monitor for further announcements regarding the size and timing of government purchases, as this will dictate the durability of the current rally.