Latest news with #DenisonMinesCorp
Yahoo
25-04-2025
- Business
- Yahoo
Denison Mines Corp. (DNN): Among the Best Uranium Stocks to Invest in According to Analysts
We recently published a list of . In this article, we are going to take a look at where Denison Mines Corp. (NYSEAMERICAN:DNN) stands against other uranium stocks to invest in. Nuclear power is making a notable comeback. More than 20 countries pledged to triple nuclear energy by 2050 at the COP28 summit. Nuclear power is considered crucial for lowering emissions, and it is gaining support from both environmental advocates and US national security interests, though for different motivations. Big tech companies are also getting involved as they hunt for more energy to power massive data centers. Uranium is not presently categorized as a 'critical mineral' by the US Geological Survey (USGS) because it is classified as a fuel mineral. However, President Trump is pushing for its inclusion in the list, which would gather federal support and speed up project approvals. This seems like a sensible play on Trump's part, as demand for uranium is climbing, and the US relies almost entirely on imports, with most of the world's supply originating from a handful of countries. Uranium prices were at a 16-year high in 2023 and, while they have dipped marginally, they remain higher than at any time since Fukushima in 2011. In December 2024, John Ciampaglia, CEO of Sprott Asset Management, told CNBC that the uranium industry had been on life support for nearly a decade after Fukushima, and there needed to be better supply discipline in the market. Uranium producers need to ensure that future supply matches demand. He noted that three factors supported the industry – first, the growing electrification in China, India, and other developing countries, secondly, energy security and decarbonization are putting the focus back on nuclear fuel as an energy source, and third, tech companies are now investing in the development of small modular reactors. He also commented on uranium spot and market prices, which are gradually moving upward. He believes uranium prices need to go higher to incentivize chemical producers and miners to increase production and build new mines, which is critical to developing uranium as a reliable electricity fuel in the coming decades. Current supply shortages, higher long-term prices, and forecasts for record nuclear energy production in 2025 all point to a positive future. With that industry outlook in mind, let's take a look at the best uranium stocks to buy according to analysts. An open pit mine with a large yellow excavator machine with tailings visible in the background, illustrating the uranium extraction process. For this article, we searched credible websites and compiled an extensive list of US-listed uranium stocks. Next, we manually searched for the average upside potential of each stock and selected 12 stocks with the highest values. The list below is ranked in ascending order of the upside potential as of April 19. We have also mentioned the hedge fund sentiment as of Q4 2024. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). Number of Hedge Fund Holders: 31 Average Upside Potential: 100.72% Denison Mines Corp. (NYSEAMERICAN:DNN) ranks 7th on our list of the best uranium stocks, with an average upside potential of 100%. DNN is a Canadian uranium exploration and development company. It holds a majority ownership stake in the Wheeler River project in northern Saskatchewan's Athabasca Basin. On April 4, investment advisory Desjardins started coverage of Denison Mines Corp. (NYSEAMERICAN:DNN) with a Buy rating and a price target of C$4. Analyst Bryce Adams from Desjardins highlighted Denison Mines' 95% ownership of the Wheeler River project, which is nearing the end of permitting and is expected to begin construction in early 2026. He sees minimal financial risk, despite a C$275 million funding gap, due to Denison's strong market position. In late 2024, Denison Mines Corp. (NYSEAMERICAN:DNN) made a deal with Cosa Resources, giving Cosa a 70% interest in three of its uranium properties in Saskatchewan's eastern Athabasca Basin. In exchange, Denison received about 14.2 million Cosa shares, $2.25 million in deferred equity, and a $6.5 million commitment from Cosa to fund exploration on the sites. The deal closed in January 2025, making Denison Cosa's largest shareholder with just under 20% ownership, and the two companies have now partnered on three uranium exploration joint ventures. According to Insider Monkey's fourth quarter database, 31 hedge funds were bullish on Denison Mines Corp. (NYSEAMERICAN:DNN), compared to 23 funds in the prior quarter. Hood River Capital Management was the largest stakeholder of the company, with 26.6 million shares worth nearly $48 million. Overall, DNN ranks 7th among the best uranium stocks to invest in according to analysts. While we acknowledge the potential of DNN as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than DNN but that trades at less than 5 times its earnings, check out our report about this . READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
23-04-2025
- Business
- Yahoo
Is Denison Mines Corp. (DNN) the Best Canadian Penny Stock to Invest in Now?
We recently published a list of In this article, we are going to take a look at where Denison Mines Corp. (NYSE:DNN) stands against other best Canadian penny stocks to invest in now. We define penny stocks as shares trading under $5.00, which usually fall into the small cap category. As illustrated by the performance of thematic ETFs, the small cap factor, which performed well historically, fell out of favor sometime in the mid-2010s and has kept underperforming ever since. The 2023-2024 period brought even stronger underperformance of penny stocks, as the proliferation of the AI trend created disproportionate opportunities across the market, favoring only a handful of large capitalization big tech names. This was an important factor in explaining the difference in cross-country stock market returns as well – for example, the Canadian stock market has largely moved in sync or even occasionally outperformed the US market during the first decade of the century, until a noticeable decoupling took place in the early 2010s. Besides lagging on productivity improvement and different monetary policies, the size factor clearly played a role, as Canada lacks big tech players to capitalize on the rapid technological advancements that took place during the 2010s. READ ALSO: 10 Best Canadian Stocks to Buy According to Billionaires As a result, both the Canadian and small-size factors have found themselves at multi-year lows relative to the US stock market at the end of calendar 2024. While many investors make reactive decisions and avoid stocks with historical underperformance, the smart way to make money is to often take contrarian bets based on forward-looking signals that may suggest a reversal in the previous tendencies. The main questions to answer in this article are the following: will the small cap factor and Canada stocks become favored again and able to outperform their large cap and US counterparts? When discussing the small factor, we get to see that its recent 2023-2024 underperformance was accelerated by rising stock market concentration to record levels. External data suggests that the 2024 US stock market concentration, as measured by the share of the top 10 largest companies in the total market, was at a record 38%, significantly above the historical average of around 24%. This means that most of the stock market returns were driven by a handful of companies favored by AI-related FOMO which overstretched their market valuations. In a scenario where large caps perform well, the small caps fall out of favor automatically, by setup. History shows, however, that concentration tends to revert to the mean – this is already happening in 2025 as the Magnificent 7 ETF, which includes the largest big tech stocks, has significantly underperformed the broad market, decreasing its concentration. Furthermore, the small cap factor tends to perform well when the economy is growing, interest rates are low and capital moves freely to riskier assets – while we aren't there yet, the stock market is a forward-looking animal that tends to anticipate economic developments 6-12 months ahead. We believe small caps and particularly penny stocks may start performing well in anticipation of lower interest rates and better economic conditions in 2026 and beyond, past the current tariff turmoil and other uncertainties induced by rapid policy changes brought by the new US administration. There are reasons to expect an improvement in the performance of Canadian stocks relative to the US market. First, the Trump Tariff Turmoil has much worse potential implications for the US than it does for Canada – the US has put its entire export/import base at risk of retaliation, while Canada only risks tariffs for its US exports (and likely at a lower overall tariff rate). Second, the breaking of economic and ideological ties with the new US administration could lead to an overall mobilization of the Canadian people and political class, and drive several positive developments: (1) substitution of US consumer brands with local Canadian brands; (2) accelerating investments into the mining/energy infrastructure and pipelines to create alternative paths and markets for the main Canadian product, which is commodities. Both (1) and (2) would have positive implications for the entire Canadian stock market and economy. The main takeaway for readers is that combining the small size factor with the Canadian factor could lead to substantial outperformance relative to the US market which witnesses heightened uncertainty and negative returns year-to-date. In such a scenario, Canadian penny stocks appear the ideal securities to pick for a bet on both factors, which would be contrarian to the trends we witnessed in the last 10 years. To compile our list of best Canadian penny stocks we use a stock screener to filter for Canadian companies trading in the US with a stock price below $5.00. Then we compared the list with our proprietary Q4 2024 database of hedge funds' ownership and included in the article the top 13 stocks with the largest number of hedge funds owning the stock, ranked in ascending order. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). An open pit mine with a large yellow excavator machine with tailings visible in the background, illustrating the uranium extraction process. Denison Mines Corp. (NYSE:DNN) explores and develops uranium in the Athabasca Basin region of northern Saskatchewan. The company's primary asset is the Wheeler River Project, which comprises the high-grade Phoenix and Gryphon deposits. The company also holds a minority interest in the McClean Lake uranium mill, one of the world's largest uranium processing facilities. All in all, DNN is a significant contributor to Canada's rising uranium needs amid a global shift to cleaner energy production. Denison Mines Corp. (NYSE:DNN)'s development portfolio projects are positioned amongst the lowest all-in cost assets globally according to UxC's First Tier categorization. Denison's Phoenix project is advancing toward a final investment decision with environmental impact statements accepted both provincially and federally, and CNSC hearing dates set for late 2025. The company is strategically positioned to benefit from the growing uranium market dynamics, as the market enters a period of projected sustained structural supply shortage, with mine production deficit in 2024 estimated at approximately 20% of demand. This market position is further strengthened by geopolitical events highlighting the importance of reliable Western sources of supply, and potential demand growth from over 30 countries pledging to triple nuclear power capacity by 2050. In our opinion, the convergence of several market and geopolitical dynamics will favor DNN in the following years, making it one of the best penny stocks on our list. Overall, DNN ranks 4th on our list of best Canadian penny stocks to invest in now. While we acknowledge the potential of DNN to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than DNN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
06-04-2025
- Business
- Yahoo
Is Denison Mines Corp. (DNN) The Small Cap Stock with Huge Upside Potential?
We recently published a list of . In this article, we are going to take a look at where Denison Mines Corp. (NYSEAMERICAN:DNN) stands against other small cap stocks with huge upside potential. In times when everyone is chasing high-cap powerhouses, knowing the right stock to invest in at the right time and the right price is highly essential. In this race for Wall Street giants, one must slow down and ask if the stock is really worth it. Or better – is it set to yield the same returns as a high-growth small-cap stock? As Francis Gannon, Co-Chief Investment Officer at Royce Investment Partners, says: 'Small-cap stocks are a 'forgotten' group that present lucrative opportunities for investors seeking diversification amid market uncertainties.' Small-cap stocks have a market capitalization between $300 million and $2 billion. Although generally more volatile and risky, history shows that small-cap stocks have often outperformed large-cap stocks. During the tech bubble of the 1990s, large-cap stocks were everyone's favorite, until the bubble burst in March 2000, when more and more small-cap companies witnessed better performance. In general, the performance of the stock doesn't entirely depend on whether the stock is large-cap or small-cap but more on where the macro and micro environments are taking the business. However, since the small-cap stocks are usually away from the analysts' eyes, they are more undervalued, and so can provide a solid return on the investment. Since there is a high growth potential for such a stock, small-cap stocks are highly valued by analysts. As the business itself is in an early stage of growth, there is more room for a stock boom. Volatility is another reason for holding these stocks. There is an increased likelihood of short-term trading and price swings that an investor can capitalize on. Additionally, many such stocks operate in specialized or niche markets, allowing the analysts to leverage interesting and unique business models, and that too, if successful, can return immensely. The fact that small-cap stocks are common targets for mergers and acquisitions is another reason to believe in these stocks. Analysts keep track of these stocks with the expectation of buyouts, which often leads to a premium in share price. A research report by John Hancock Investment Management on understanding the performance of small-cap stocks indicated that, historically, small-cap stocks have had higher average returns than large-cap stocks. As small-cap stocks work well in diversified portfolios, they behave differently than large-cap stocks. The study examined the existence of size premiums in the United States, emphasizing the historical performance of Fama/French U.S. Small and Large Cap portfolios. The findings show that since the 1920s, small-cap stocks have outperformed large-cap stocks. Another research by Invesco in 2020 revealed that small caps have outpaced large caps from the past four recessions in all but one of the following 1- and 3-year periods. To decide which small-cap stock is right for you, it is pertinent to monitor closely not only the stock itself but also its peers, as it provides a bigger picture. The factors that are crucial in the choice you make include the liquidity position, sensitivity to market swings, financial stability, and connection to AI. The stocks that we have selected are among the ones yielding high upside potential across a range of industries like financial, food, and mining. We have used Finviz and Stock Analysis screeners to select ten stocks with market capitalizations between $300 million and $2 billion. The one-year price targets have been extracted from Yahoo Finance to calculate the upside potential based on the stocks' prices as of March 28, 2025. These companies are then listed according to their upside potential. At Insider Monkey, we are obsessed with hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). An open pit mine with a large yellow excavator machine with tailings visible in the background, illustrating the uranium extraction process. Upside Potential: 223% Market Capitalization: $1.205 billion Denison Mines Corp. (NYSEAMERICAN:DNN) is a leading uranium exploration and development company with interests in the Athabasca Basin, Wheeler River, Midwest Project, McClean Lake, and Waterbury Lake. Founded in 1997, this Canada-based company is committed to large-scale uranium projects through rigorous technical evaluations and innovative approaches to mining. The company not only meets the technological demands of complex mining projects but also satisfies the community and environmental concerns regarding modern resource development. When considering Denison Mines Corp. (NYSEAMERICAN:DNN), one can never overlook the Wheeler Project. This flagship project, with production expected to begin by late 2027, will allow the company to capitalize on the higher forecasted uranium prices and diversify its revenue stream. This small-cap company has worked extensively towards technically derisking the project while maintaining a strong financial position. What attracts us the most to Denison Mines Corp. (NYSEAMERICAN:DNN) is its Phoenix Project. This initiative, aiming to build and operate the upcoming large-scale uranium mine in northern Saskatchewan, is going to be a pioneer of uranium ISR mining operations in the Athabasca Basin region. The Financial and Operational Results for 2024 highlighted significant progress of the venture, with construction planned for early 2026 and production targeted for the first half of 2028. While we won't be seeing returns in the short term, the long haul for the project looks quite promising. Another factor that we can't ignore is the overall uranium industry. The uranium market is well-positioned for high growth due to a demand surge from nuclear energy and constrained supply within the market. With a global trend towards cleaner energy, the demand is anticipated to rise by as high as 60% by 2040. On that note, Denison Mines Corp. (NYSEAMERICAN:DNN), with a potential upside of over 200%, has a sound standing in what could be a bull case over the next few years. Overall, DNN ranks 2nd on our list of small cap stocks with huge upside potential. While we acknowledge the potential of DNN, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than DNN but that trades at less than 5 times its earnings, check out our report about this . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
