Where to Trade 3 Hot Nuclear Energy Stocks Amid Big Tech Embrace
As Elon Musk, Amazon and Google look to increase nuclear energy production, you can get some exposure with these three holdings.
You've reached your free article limit
You've read 0 of 1 free Pro articles.
In two months, the Trump administration will assume control of the executive branch of the U.S. government. Based on its previous term, the Trump administration is expected to be pro-energy.
That stance is likely to extend beyond an increased emphasis on drilling for natural gas and crude oil. Tesla TSLA and SpaceX CEO Elon Musk, a close confidant of Trump’s, is very pro-nuclear. Musk has described past attempts to close nuclear power plants as "total madness."
Musk isn’t the only big name in tech that sees the nuclear light. According to The New York Times, Amazon AMZN, Alphabet GOOGL and Microsoft MSFT are investing in nuclear energy, to meet the heavy demands of AI-driven data centers. Microsoft recently entered a deal that will result in the reopening of the infamous Three Mile Island nuclear plant in Pennsylvania.
Because the energy needs of these tech giants are likely to increase in the future, let’s shine a light on some of the hottest names in the nuclear sector.
GE Vernova (GEV)
GE Vernova GEV is GE’s power spinoff, and started trading as a stand-alone company in April. On Thursday, shares of this nuclear and wind-generated power provider reached their highest level this year.
Where should traders look to buy GE Vernova? A pullback to the $300 area would be an ideal location for an entry. That price is in the area of the stock’s 50-day moving average (blue), as well as its bullish trend line (black dotted line).
Traders can open a small position now, and add to it if the stock pulls back to the $300 area. If the price breaks below the moving average and the trend line, traders should cut their losses.
GRADE: B
BWX Technologies (BWXT)
BWX Technologies BWXT, a Lynchburg, Virginia-based supplier of nuclear reactor components and fuel, boasts a 74.5% year-to-date gain, and closed at a 52-week high on Thursday.
BWX Technologies has manufactured naval nuclear equipment since the 1950s. The company provided components for the world’s first nuclear powered submarine, the USS Nautilus.
According to the stock’s relative strength index (RSI) indicator (green arrow), BWX Technologies isn't overbought. Earlier this month, the company beat earnings expectations by 7.65%, and exceeded revenue projections by 2%.
GRADE: B+
NuScale Power (SMR)
Oregon-based NuScale SMR designs and markets small modular reactors. This stock has gained an incredible 781% year to date.
One caveat : Pver the past month, as the stock has been moving higher, NuScale’s volume has been trending in the opposite direction (black dotted line).
This is a strong stock, within a strong sector, within a strong market, NuScale is a pure momentum play, but buyers need to be nimble, as the stock is at risk of a pullback.
GRADE: C
At the time of publication, Ponsi was long GEV and BWXT.
