Nuclear Energy Stocks to Buy Now: BWX Technologies and Cameco
Chicago, IL – April 14, 2025 – Zacks Investment Ideas has highlighted BWX Technologies, Inc. (BWXT) and Cameco (CCJ) as attractive investment options in the current market.
Market Overview and the Resilience of Long-Term Investors
In a dramatic turn of events, the stock market experienced a significant rebound on Wednesday, spurred by Trump’s recent announcement of a 90-day pause on certain tariffs, reducing them to 10%. This surge underscores the importance for long-term investors to maintain their positions in the stock market, even amidst falling prices. However, the momentum did not last, as the market retraced some gains on Thursday while investors awaited definitive progress on tariff discussions and the implications of U.S.-China relations.
Preparations for Earnings Season and Technical Indicators
As Wall Street braces for the upcoming Q1 earnings season, starting with JPMorgan’s report, many investors appear hesitant to make substantial moves. Notably, while timing market bottoms is challenging, several key technical indicators hint that now may be a prudent time for long-term investors to consider gradual purchases of stocks. For instance, the Nasdaq index recently dipped below its peaks from 2021, approaching its crucial 200-week moving average—a favored metric for identifying buying opportunities.
Evaluating Fear and Market Sentiment
Contributing further to this ambiance of cautious optimism is CNN’s Fear and Greed Index, which currently reflects a state of “Extreme Fear” at a score of 9. This low level, especially compared to the score of 4 at the week’s beginning, signifies potential buy points for savvy investors. Today, we will explore two compelling nuclear energy stocks that have fallen at least 25% from their recent highs—BWX Technologies and Cameco—allowing investors to capitalize on the market downturn for long-term benefits.
Why Nuclear Energy Stocks Present a Compelling Investment Case
The U.S. government is actively supporting a renaissance in nuclear energy, with ambitions to triple its nuclear capacity by 2050. Despite nuclear energy accounting for roughly 20% of the U.S. electricity supply over the last thirty years, meeting future energy demands will require considerable financial investment and time. Major tech companies, including Amazon, Alphabet, and Microsoft, have already invested in multi-billion dollar nuclear agreements to support their burgeoning energy requirements, particularly in artificial intelligence, which consumes vast amounts of energy.
Highlighting BWX Technologies as a Buy-and-Hold Investment
BWX Technologies, Inc. stands out as a prominent nuclear manufacturer and engineering enterprise engaged across varied sectors, including energy and defense. The company is actively expanding its commercial nuclear segment, focusing on cutting-edge small modular reactor technology. Through partnerships with prominent organizations like GE Vernova and government entities, BWXT is set to benefit significantly from the anticipated surge in nuclear energy demand. It’s projected to grow its revenue by approximately 12% in both 2025 and 2026, making it an attractive stock for long-term investment. Furthermore, with a strong balance sheet and a consistent track record of beating earnings expectations, BWXT earns a Zacks Rank #2 (Buy).
Cameco: A Must-Have Uranium Mining Stock
Cameco, a leading Canadian uranium miner, is crucial for the nuclear energy landscape. As the second-largest uranium producer globally, Cameco’s role is increasingly vital as the U.S. seeks to become less reliant on external sources for uranium, particularly from Russia. Over the past three years, Cameco has achieved an impressive 25% average revenue growth and is projected to see earnings rise by 96% in 2025. With a strong buy rating from a majority of financial analysts, Cameco represents another valuable addition to the nuclear stocks portfolio.
Conclusion: The Future of Nuclear Energy Stocks
Given the significant initiatives to bolster the nuclear energy sector and the strategic investments by top companies in this industry, BWX Technologies and Cameco present strong propositions for investors. Their potential for growth amidst the transition to more sustainable and reliable energy sources makes them worthy of consideration in any long-term investment strategy focused on stocks. Investors looking for reliable opportunities in a potentially volatile market can benefit greatly from these nuclear energy stocks.