Benzinga Analyst: Trump's New Policy Embraces Nuclear Power, Driving Four Nuclear Stocks

President Trump issued a new executive order to promote nuclear energy production and alleviate regulatory burdens, likely driving the revival of the nuclear industry. The increasing power demands of clean energy programs and artificial intelligence data centers contribute to the renewed development of the nuclear industry. Nuclear power has sustainability, unlike wind and solar energy, which require specific climate conditions to operate. As electricity demand rises, technology industry leaders and regulatory agencies are re-recognizing nuclear power, and technology funds are beginning to flow into nuclear power suppliers. Some companies are brewing innovative technologies that can shorten construction times and drop costs. Analysts believe that the nuclear revival will have opportunities to drive four nuclear stocks. Purely market observation, not any investment advice.

Constellation Energy Corp. (Nasdaq symbol CEG))

CEG announced this week a collaboration with Meta Platforms Inc. that has made headlines. The agreement is a 20-year power purchase agreement where CEG will provide 1,121 megawatts of nuclear power to support Meta's clean energy program. Constellation's clean energy center will be responsible for procuring the electricity, which previously faced closure risks after its zero-emission credit allocation expired in Illinois. Now, the energy center will start supplying power to Meta in 2027 and will continue to operate for 20 years. Following this positive news, CEG's stock price briefly surpassed $340.

Constellation is one of the largest publicly traded nuclear companies, with a market capitalization of $98 billion and annual sales exceeding $24 billion. Unlike many other nuclear energy companies, CEG offers a diverse energy mix, including natural gas, petrochemicals, wind, and solar energy, among others. The company's profit growth is also sufficient to support speculation. The company's earnings report on May 6 showed an earnings per share of $2.14 and revenue of $6.79 billion, far exceeding analysts' expectations of $2.11 EPS and $5.34 billion in revenue. After the earnings report was released, BMO Capital and UBS raised their price targets to $337 and $320, respectively. Analysts believe that CEG's announcement of a significant partnership with Meta may lead to the stock price hitting a historical high in the coming weeks, with further upward adjustments to the price target.

Oklo Inc ( NYSE code OKLO )

Oklo is a developer of fission power plants, and with its facilities about to come online, it will use key energy as fuel, making the company a significant beneficiary of Trump's executive order. Oklo reactors utilize high-purity low-enriched uranium (HALEU), which is a higher quality fuel product than that used in traditional power plants. HALEU was also mentioned in Trump's executive order, and upon the news, the stock price of the Oklahoma nuclear power plant (OKLO) approached an all-time high, with some pullbacks this week potentially opening new buying opportunities for investors.

NuScale Power ( NYSE code SMR)

NuScale Power is the only company that has received approval from the U.S. Nuclear Regulatory Commission (NRC) to build small modular reactor (SMR) modules. Although the U.S. has not yet constructed any SMR facilities, Trump hopes to change this status quo with an executive order issued two weeks ago. SMRs are smaller in scale, requiring less time and funding for construction, making them an ideal solution for companies looking to gradually expand their nuclear power operations.

NuScale's share price recently hit an all-time high, with the 50-day moving average breaking above the 200-day moving average, triggering a golden cross. The Benzinga Edge score table at 98.32 shows that this uptrend has significant strength and is not only a bullish signal from technical indicators. NuScale, which has struck deals with data centers in Ohio and Pennsylvania, reported impressive earnings on May 12 with earnings beating expectations and revenue beating expectations by nearly 300%, with the stock's third price target raised, led by CLSA (CLSA), raising its target price to $41, indicating a nearly 30% upside opportunity for the stock. SMR shares have retreated this week as the RSI index reaches overbought territory, but this pullback from all-time highs could be a good entry point for establishing new positions.

Cameco Corp. (NYSE ticker CCJ)

Cameco Corp. may not trade with any large tech companies, but without the company's uranium products, powering these data centers could be impossible. Cameco is one of the world's largest uranium mining companies, with operations across four continents.

Despite favorable industry conditions, CCJ's stock price has been hovering within a range since last summer. However, as energy demand continues to rise and regulatory attitudes towards nuclear power become increasingly positive, these factors have driven the stock to eventually break new highs. The bullish MACD crossover is boosting the stock price, and although profits are not as expected, analysts remain optimistic about the stock, generally giving it a "buy" rating with an average target price of $67.91. Goldman Sachs first assigned a "buy" rating on May 20, with a target price of $65.

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