Latest news with #CentrusEnergy
Yahoo
4 days ago
- Business
- Yahoo
Why Centrus Energy Stock Soared Higher This Week
Meta Platforms signed a massive 20-year deal with a nuclear energy provider, leading to investor enthusiasm across the industry. Bank of America initiated coverage of Centrus with a buy rating. Centrus is in a strong position to capitalize on the growing demand for nuclear power. 10 stocks we like better than Centrus Energy › Shares of Centrus Energy (NYSE: CCJ) are moving higher this week. The company's stock was up 11.5% at 1:08 p.m. ET from last Friday's close. The S&P 500 index and the Nasdaq-100 index were up 1.2% and 1.8%, respectively, at the same time. Centrus, a provider of enriched uranium to fuel nuclear reactors, saw its stock rise after the announcement of a major deal between Meta Platforms and Constellation Energy and after receiving a buy rating from Bank of America. Meta, the parent company of Facebook and Instagram, signed a deal earlier this week that will grant it access to all the energy output from the Clinton Clean Energy Center nuclear reactor in Illinois. The 1.1 gigawatt output is enough to power 800,000 homes. Meta and other tech companies are finding it difficult to access enough power to meet the incredible demands of AI, especially if they are to try to meet their respective climate goals. Nuclear power offers relatively cheap, consistent, and abundant power without pumping greenhouse gases into the atmosphere. The announced deal helped shares of Centrus move higher, as it was a clear signal that the AI industry will actively pursue nuclear energy solutions. Centus is in a strong position to capitalize on this accelerating demand for nuclear power. It is one of only two licensed producers of enriched uranium in the U.S., giving it a substantial moat. If the marketwide trend holds, and I think it will, Centrus will no doubt benefit. And while its stock is not cheap, I think its future income justifies it. Before you buy stock in Centrus Energy, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Centrus Energy wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $674,395!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $858,011!* Now, it's worth noting Stock Advisor's total average return is 997% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Bank of America is an advertising partner of Motley Fool Money. Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bank of America, Constellation Energy, and Meta Platforms. The Motley Fool has a disclosure policy. Why Centrus Energy Stock Soared Higher This Week was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
04-06-2025
- Business
- Yahoo
Why Centrus Energy Stock Soared Today
Amazon (and Meta Platforms) are going full speed ahead in setting up new data centers for artificial intelligence (AI). Nuclear power plants may be the best way to generate the electricity these AI data centers will need. Centrus helps to enrich the uranium that fuels those nuclear power plants. 10 stocks we like better than Centrus Energy › Centrus Energy (NYSEMKT: LEU) stock jumped 8.8% through 3:15 p.m. ET Wednesday on (potentially) terrific news for the nuclear power industry. Earlier this year, investors in nuclear stocks -- and artificial intelligence (AI) stocks -- were all aflutter after reports said Microsoft is slow-rolling setting up data centers for AI services. And if Microsoft is foreshadowing AI doom, this might mean we won't need to build a lot of nuclear power plants to keep AI server farms humming. Yesterday, though, Constellation Energy announced a 20-year deal to supply nuclear power to Meta Platforms server farms. Today, it was Amazon's turn to give nuclear stocks a boost, announcing a $10 billion investment in new data centers in North Carolina. Amazon is building the data centers to support its own AI infrastructure -- part of a plan that could see Amazon spend $100 billion this year on capital improvements in general, AI infrastructure in particular. And what does this mean for investors in companies like Centrus, which enriches uranium for use in nuclear power plants? Well, we now have two gigantic AI firms -- Meta and Amazon -- announcing over two straight days back-to-back gigantic deals to grow their AI businesses. Whether or not Microsoft is scaling back its own AI bets (and there is still some debate on that point), if Meta and Amazon are still going full speed ahead, that means AI is still growing. And if AI is growing, then the need for nuclear power plants to fuel that growth -- and for enriched uranium to fuel the power plants -- will grow as well. That's bullish for Centrus stock. It's why Centrus stock is going up today. Before you buy stock in Centrus Energy, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Centrus Energy wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $656,825!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $865,550!* Now, it's worth noting Stock Advisor's total average return is 994% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Rich Smith has positions in Meta Platforms. The Motley Fool has positions in and recommends Amazon, Constellation Energy, Meta Platforms, and Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Why Centrus Energy Stock Soared Today was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Forbes
28-05-2025
- Business
- Forbes
What's Happening With CEG Stock?
Constellation Energy Group (NASDAQ: CEG) has seen a significant boost in its stock performance over the past month. This surge is primarily fueled by investor excitement following recent executive orders from U.S. President Donald Trump. These orders aim to streamline the nuclear energy sector by directing the nation's independent nuclear regulatory commission to reduce regulations and accelerate the licensing process for new reactors and power plants. These directives are part of a broader effort to increase U.S. nuclear energy production, a move that comes amid soaring demand from data centers and the artificial intelligence industry. Despite this strong market momentum, concerns about Constellation Energy's valuation persist. While Constellation Energy's recent performance is notable, it pales in comparison to some of its peers in the nuclear energy sector. Oklo has posted an impressive 120% gain in the last month, Centrus Energy is up over 80%, NuScale has climbed 109%, and Vistra has seen a 26% increase. Notably, Constellation Energy Group is significantly larger, with a market capitalization of $97 billion, exceeding the combined market capitalization of the other four companies mentioned. Now, if you seek upside with lower volatility than from individual stocks, the Trefis High Quality portfolio presents an alternative, having outperformed the S&P 500 and generated returns exceeding 91% since its inception. One of the primary concerns for Constellation Energy Group stock is its valuation, which appears stretched. CEG is currently trading at a premium, with a price-to-sales (P/S) ratio of 4.1. This is notably higher than the S&P 500's average P/S ratio of 3.0. Furthermore, its price-to-earnings (P/E) ratio stands at 33x, surpassing the benchmark index's 26x. While this P/S ratio might not seem excessively high at first glance, it's crucial to note that CEG typically trades at a lower multiple. In fact, its current P/S ratio of 4.1x is more than double its average of 1.9x over the past three years, indicating a significant upward shift in its valuation. Constellation Energy Group's recent growth trajectory presents a somewhat mixed picture. While the company has achieved an average annual revenue growth rate of 7% over the past three years, its most recent fiscal year saw a 5% decline in revenues, settling at $23.6 billion. For the last twelve months, that figure stood at $24.2 billion. However, there's a more positive note from its most recent quarterly results, which showed a 10.2% year-over-year jump in revenue. Looking ahead, CEG is in the process of acquiring Calpine Corporation, a move that is expected to boost its sales growth. Calpine brings a substantial portfolio of natural gas, geothermal, battery storage, and solar assets with over 27 gigawatts of generation capacity. Additionally, it includes a competitive retail electric supplier platform that serves approximately 60 terawatt-hours of load annually. Still, based on consensus estimates, the company's sales are projected to reach $23.4 billion in 2026, representing a marginal decline from the $23.6 billion recorded last year. Constellation Energy's profitability metrics present a mixed picture, with some areas indicating challenges. Over the past four quarters, the company reported an Operating Income of $4.7 billion, translating to an Operating Margin of 19.4%. This figure actually surpasses the S&P 500's average of 13.2%. However, a significant concern arises from its Operating Cash Flow (OCF), which was negative $1.6 billion over the same period, resulting in a very poor OCF Margin of -6.8%, notably lagging behind the S&P 500's 14.9%. Despite this, Net Income totaled $3.0 billion, yielding a moderate Net Income Margin of 12.3%, which aligns with the S&P 500's 11.6%. This combination of strong operating and moderate net income margins alongside negative operating cash flow suggests a need to address cash generation efficiency despite otherwise good profitability. Constellation Energy's balance sheet appears generally solid, though with areas for potential enhancement. At the end of the most recent quarter, the company reported $8.4 billion in debt against a substantial market capitalization of $97 billion (as of May 27, 2025). This results in a strong Debt-to-Equity Ratio of 9.1%, which is considerably lower and more favorable than the S&P 500's average of 19.9%. However, a less favorable aspect is its liquidity. Constellation Energy holds $1.8 billion in cash and cash equivalents, which constitutes only 3.5% of its total assets of $52 billion. This poor Cash-to-Assets Ratio falls significantly below the S&P 500's average of 13.8%, indicating less immediate liquidity compared to many peers. While its debt management is robust, the company's lower cash reserves suggest less flexibility for immediate strategic maneuvers or cushioning against unforeseen market shifts. In contrast to some other companies, Constellation Energy Group stock has demonstrated greater resilience than the benchmark S&P 500 index during recent economic downturn. During the 2022 inflation shock, CEG stock experienced a 24.5% decline, falling from a high of $97.16 on November 25, 2022, to $73.40 on March 23, 2023. This performance was slightly better than the S&P 500's peak-to-trough decline of 25.4% during the same period. Notably, CEG stock fully recovered to its pre-crisis peak by July 25, 2023. Since then, the stock has continued its upward trajectory, reaching a high of $347.44 on January 26, 2025, and currently trades around $310. This history suggests a more robust ability to withstand macroeconomic shocks compared to some of its counterparts. While investors have their fingers crossed for a soft landing by the U.S. economy, how bad can things get if there is another recession? Our dashboard How Low Can Stocks Go During A Market Crash captures how key stocks fared during and after the last six market crashes. Constellation Energy stands as a prominent player in the evolving energy sector, particularly with its leadership in carbon-free power generation, primarily through its nuclear fleet. The company exhibits robust fundamentals, including strong operating margins. However, a key point of consideration is CEG's history of negative free cash flow, indicating substantial capital expenditures that add on to negative cash flows from operations. We believe that CEG's current valuation metrics points to an elevated entry point for value-oriented investors, despite positive investor sentiment and its strong long-term strategic vision in clean energy. Potential investors should carefully weigh CEG's growth prospects against the financial implications of its substantial capital outlays and premium pricing. Now, investing in a single stock like CEG can be risky. On the other hand, the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming the S&P 500 over the last 4-year period. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index, less of a roller-coaster ride as evident in HQ Portfolio performance metrics.
Yahoo
25-05-2025
- Business
- Yahoo
Nuclear Energy Stocks Soar as Trump Prepares Executive Order
An executive order boosting nuclear energy production, permitting, and construction is expected to be signed as early as today. Nuclear energy stocks are up big on the news, but this may leave investors disappointed. 10 stocks we like better than NuScale Power › Reuters has reported that President Trump is planning to sign an executive order to speed up the permitting and construction of nuclear energy power plants in the U.S. as early as today. The market didn't ask questions and simply bid up nuclear stocks today. As a result, anything related to nuclear energy was up big, with Oklo (NYSE: OKLO) up as much as 31.3%, Centrus Energy (NYSEMKT: LEU) up 26.5%, Nano Nuclear Energy (NASDAQ: NNE) jumped 29.7%, NuScale Power (NYSE: SMR) was up 18.3%, Energy Fuels (NYSEMKT: UUU) rose 19.1%, and Uranium Energy (NYSEMKT: UEC) popped 26%. As of this writing, at 1:30 p.m. ET, there's no executive order signed, and the most we have is reporting from Reuters. It says the order would invoke the Defense Production Act and direct the Departments of Energy and Defense to speed up the construction of new nuclear reactors. The reporting indicates that reliance on Russia and China for enriched uranium is the basis for the order, with the administration hoping to push development on both private and public land. As with most executive orders, the impact may not be as big as investors might think. It will still take many years to permit and build nuclear power plants, and it's not clear if they would be cost-effective today anyway. So, the sentiment may be correct by the administration, but the financial impact for these companies may disappoint. The bounce is almost entirely built on speculation because most of these companies are either very low revenue or pre-revenue. They're developing technology or solutions for the industry, but that hasn't even manifested in paying customers to this point. As investors, that's a big risk to take for an industry that moves in decades, not months or years. The Obama administration tried to rejuvenate the nuclear industry over a decade ago, and that didn't work, so it's not clear why this would be different. This isn't the first time the nuclear industry has gone through hype cycles. You can see in the chart that long public stocks like Energy Fuels and Uranium Energy have been extremely volatile for two decades. But over that time, they haven't generated meaningful or sustainable earnings that investors can count on. I don't see any reason to think that's going to change this time around. Changes to the nuclear bureaucracy could take years, and by then, there may be a new administration. Financing and constructing nuclear power plants is also not a straightforward endeavor for utilities that may want to invest in the industry, given the high cost and uncertain payback period for projects. I think today's bounce will be another short-term move that will ultimately fall back to Earth as the nuclear industry fails to live up to the hype in the market today. An executive order doesn't change the challenge the industry has building projects economically, and until that changes, it's an area I'll stay out of. Before you buy stock in NuScale Power, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and NuScale Power wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $640,662!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $814,127!* Now, it's worth noting Stock Advisor's total average return is 963% — a market-crushing outperformance compared to 168% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Travis Hoium has no position in any of the stocks mentioned. The Motley Fool recommends NuScale Power. The Motley Fool has a disclosure policy. Nuclear Energy Stocks Soar as Trump Prepares Executive Order was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
24-05-2025
- Business
- Yahoo
Centrus Energy (LEU) Gained Over 21% Today. Here is Why.
The share price of Centrus Energy Corp. (NYSEAMERICAN:LEU) surged by 21.37% on May 23, 2025. Let's shed some light on the development. Centrus Energy Corp. (NYSEAMERICAN:LEU) is a trusted supplier of nuclear fuel and services for the nuclear power industry. Centrus Energy Corp. (NYSEAMERICAN:LEU) received a boost on Friday after President Donald Trump signed executive orders to jumpstart the country's nuclear power industry by overhauling the Nuclear Regulatory Commission and speeding up the deployment of new reactors. The strategic move also aims to strengthen supply chains by jump-starting the mining and enrichment of uranium on American soil. Given the tense geopolitical landscape and the ongoing tariff war, the White House wants to reduce reliance on Russia and China for enriched uranium, nuclear fuel processing, and advanced reactor inputs. The development is extremely bullish for a company like Centrus Energy, since it spearheads the domestic production of High Assay Low-Enriched Uranium (HALEU), a critical component for powering next-generation nuclear reactors. It is worth mentioning that earlier this month, Centrus Energy Corp. (NYSEAMERICAN:LEU) posted stellar results for the second consecutive quarter in its Q1 2025. The company's EPS of $1.6 beat expectations by a significant $1.65, while its revenue also surged by 67.3% YoY to $73.1 million, and topped estimates by almost $5 million. While we acknowledge the potential of LEU to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than LEU and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 10 Cheap Energy Stocks to Buy Now and 10 Most Undervalued Energy Stocks According to Hedge Funds. Disclosure: None. Sign in to access your portfolio
