For investors, this is an opportunity to capitalize on emerging trends and make some profits in the process. In this article, we will look at the best uranium companies to invest in for 2023. We'll discuss how you can identify a good stock, where you can find reliable information about uranium stocks, and which ones may be worth investing in over the next few years.
Best Uranium Stocks to Buy Now (2023)
With an average concentration in the Earth's crust of 2.8 parts per million, uranium is a sought-after commodity. It's a highly valuable resource for the energy sector; the continual transition from fossil fuel to clean energy sources, such as nuclear fuel, has boosted the demand for uranium and its related products.
How to Buy Uranium Stocks
Before purchasing uranium companies – or any stocks at all – it's helpful to understand the difference between a brokerage purchase and a direct stock purchase.
A brokerage purchase is when you pay a broker to buy and sell stocks on your behalf. A direct stock purchase, however, is when you invest directly in the company's shares, usually through its own website or by contacting it directly through email or phone.
Brokerages have a few key advantages: they offer more diversified investments, you can receive advice from experienced brokers, and it's easier to execute trades. Let's run through the steps you should take when buying uranium stocks from a brokerage.
1. Do Your Own Thorough Research
Wall Street is home to a number of analysts whose job it is to research stocks and come up with recommendations. These analysts can be helpful, but it's unwise to take their word without doing your own research first.
You should look at:
- How well the company has performed over the past year. What were their Q4 earnings? What is their price per share?
- How the uranium market is performing overall. What are the current trends in supply and demand? Are there any new developments that could affect the industry in 2023?
- The company's management, including its board of directors. Who are they, and what experience do they have with mining or energy industries? Does the company have a solid strategy for growth?
You'll be in a much better position to make an informed decision if you do your own research.
2. Choose a Brokerage Account
Once you've done your research, it's time to choose a brokerage account. This is where the actual buying and selling of stocks takes place – you'll need one to purchase uranium stocks.
When selecting a brokerage, look at features such as fees (including commissions), customer service quality, trading tools and platforms offered, mobile app availability, and other useful features like automated investing services or tax planning tools.
Do some comparison shopping to find the best broker for your needs – or to make things easier, use our comparison tool to find the best investment app.
3. Set Your Budget
How much money do you want to invest in uranium stocks? Consider how much risk you're willing to take on and your long-term financial goals.
The amount you invest will obviously depend on your financial situation and the amount of money you can afford to lose. When investing, it's important to remember that stock prices can fluctuate dramatically and there's no guarantee of a return on investment.
And of course, remember that investing only in uranium stocks is not wise – diversification of your portfolio is key to reducing risk.
4. Choose a Stock and Buy It
Once you've done all the above, it's time to make your purchase. Choose the stock that best meets your needs and buy it through your brokerage account. Remember, you can always change your mind later and sell it if necessary – but research thoroughly before making any decisions.
5. Monitor the Stock
Your involvement doesn't end once you have the stock in your portfolio. The monitoring process is arguably the most important step, as it gives you insight into whether to hold, sell, or buy more of the stock.
Look for any news related to the company, changes in management, new developments in uranium mining, and other relevant information. You should also track the stock's performance over time and make sure it aligns with your expectations.
The Best Uranium Stocks to Buy Now (2023)
Now that you know how to purchase uranium stocks from a brokerage account, let's take a look at some of the best stocks on offer right now. Keep in mind that these stocks may not be suitable for everyone – and we are not recommending any particular stock or taking the role of an analyst.
Uranium Royalty Corp. (NASDAQ:UROY)
As the only uranium-focused royalty in the world, Uranium Royalty Corp. strategically acquires royalty interests in uranium projects. It has an impressive portfolio of assets and is well-positioned to benefit from the industry's long-term prospects.
While UROY stock prices saw an average 1Y drop at -22.75%, the company's value is on the way up after announcing a new connection with the McArthur River mine. The plan is to receive royalty proceeds from the mine's physical uranium delivery; 15M lbs of U308 per year will be produced from 2024 onward.
If this plan reaches fruition, shareholders stand to benefit considerably. The UROY stock price has been fluctuating in early 2023, but showing a general upward trajectory.
Australia's Olympic Dam mine is known to be one of the largest uranium deposits worldwide. It's owned by BHP, a global leader in the exploration, development, and production of minerals. Uranium deposits from the dam in 2022 equaled 2.4 million metric tons.
The company is heavily invested in uranium exploration, both through its operations and investments in various projects across Australia and Canada. BHP has a robust balance sheet and a market cap of US$166.74 billion.
BHP remains a highly viable stock option for investors thanks to the company's proactive resource profile expansion. It continually explores new opportunities in uranium as well as silver, gold, and copper, among other assets.
Cameco Corporation (CCJ)
Speaking of the McArthur River mine, there's another company with stakes in this uranium deposit – Cameco. The company also owns a 50% stake in Cigar Lake, Saskatchewan. As the world's largest uranium producer on the public market, Cameco has the potential for long-term growth.
Cameco has a market cap of US$10.99 billion and is expanding its reach rapidly; in November 2022, the company made a deal with one of the largest Chinese nuclear power operators, China National Nuclear Corporation.
Cameco Corporation reportedly recorded 45 million pounds worth of long-term uranium contracts last year, with plans to increase that number moving forward.
Energy Fuels Inc. (UUUU)
In December 2022, Energy Fuels was awarded a strategic contract for US$18.5 million in uranium concentrates. This, combined with the company's ownership of Nichols Ranch ISR and Alta Mesa ISR projects, highlights Energy Fuels Inc as a potentially strong stock option for investors.
Energy Fuels is the largest U.S.-based producer of uranium and vanadium (a rare earth metal). It has two facilities in Utah and Colorado, with a total licensed capacity to produce up to 8 million pounds of U3O8 annually.
The company's stock price saw an average 1Y rise at 30.44%, as well as a 20.03% YTD. With its strategic contracts and value to nuclear power producers, Energy Fuels Inc remains one of the strongest companies in the industry right now.
Uranium Energy Corp. (UEC)
Uranium Energy Corp is a U.S.-based company that operates various uranium mining projects across six U.S. states. Its world-class Hobson Central Processing Plant has been approved for an expanded radioactive material license; moving forward, UEC aims to produce 4 million pounds of U3O8 per year.
UEC stock prices have seen a 63.22% rise in the past year with a 1.68% YTD. Analysts forecast a high price of $8.25 and a median price of $6.80 over the next 12 months.
Investors may also consider investing in uranium-focused ETFs, such as the Global X Uranium ETF (URA) or Sprott Uranium Miners. ETFs are a great way to diversify your portfolio and access a wide range of uranium stocks in one simple bundle.
Best Uranium Stocks Conclusion
While no stock can be guaranteed to perform, uranium has become an increasingly popular sector for investors in recent years thanks to its demand. Uranium fuels nuclear power, which is a highly valuable resource to the energy sector.
The stocks mentioned above are some of the best uranium stocks to buy right now, but investors should always do their own research before investing. It's also worth keeping an eye on ETFs like URA and Sprott Uranium Miners if you're looking for a more diversified portfolio in this sector.
For more information, check out our resources for investors. We keep our thumb on the pulse of stock trading and can help you choose the best online brokerage for your investment needs.
While we cannot provide official investment advice, the stocks outlined above are some of the best uranium stocks to buy right now. These include Uranium Royalty Corp. (UROY), BHP (BHP), Cameco Corporation (CCJ), Energy Fuels Inc. (UUUU), and Uranium Energy Corp. (UEC). Investors may also consider investing in uranium-focused ETFs such as Global X Uranium ETF (URA) or Sprott Uranium Miners.
The top three uranium producers in the world are Core Lithium Ltd (9 million MT), Australian Vanadium Ltd (7.2 million MT), and Vital Metals Ltd (6.1 million MT). Other high-producing companies include BHP Group Ltd (2.4 million MT) and Alligator Energy Ltd (2.9 million MT).