HomeLatestESG Investors are Bullish on Nuclear Energy Stocks
ESG Investors are Bullish on Nuclear Energy Stocks
October 07, 2021 - by Kevin Flynn
Those of us who grew up in the 60s and 70s have a difficult time wrapping our heads around nuclear energy being a “green” solution for power generation. We remember the fear-based politics of the Cold War, the meltdown at Three Mile Island, and the devastation of Chernobyl. We forget that all happened prior to 1990. Nuclear technology has evolved.
Nuclear power generation produces zero emissions, unlike the coal fired plants that released 1,241 million metric tons of CO2 into the environment last year. That’s in addition to lead, uranium, carbon monoxide, and sulfur dioxide. According to environmentalists, coal is responsible for 72% of total greenhouse gas (GHG) emissions from the electricity sector.
ESG investors are bullish on nuclear energy stocks. They meet the criteria for the “E,” and have been producing strong returns for several years now. As our nation and the rest of the world continues to migrate to clean energy solutions, this is a sector worth looking at. Nuclear power plants can easily outproduce solar and wind farms.
Uranium ETFs Beat S&P Performance by a 3:1 Margin
I feel like I’ve been writing this comparison a lot recently. Let’s face it. The S&P isn’t performing all that well this year, at least not when you compare it to some of the sectors we’ve been analyzing. For instance, the SPDR S&P 500 ETF Trust (SPY) is up 17.16% YTD. The Global X Uranium ETF (URA) is up 53.45% over that same time frame. That’s a 3:1 margin.
It gets better. Check out the North Shore Global Uranium Mining ETF (URNM) and the Horizons Global Uranium Index ETF (HURA). URNM is up 78.98% YTD and HURA is showing a cool 68.31% return. The numbers are literally “going nuclear” this year. This is the first time I’ve looked at this sector and I sincerely wish someone had told me about it sooner.
If you prefer individual stocks, take a look at Cameco Corp (CCJ). The Saskatchewan-based uranium company is showing a 62.14% return this year and is trading at $21.71 as of this writing. According to the Motley Fool, RBC Capital and GLJ Research both increased their price target on Cameco earlier this month. CCJ has responded with a 30-day gain of 14%.
I’ve rarely seen a sector produce this well outside of a major bull market, but I did finally find a uranium stock that showed a bit of a loss recently. Energy Fuels Inc (UUUU) is down 2% today. They’re up 75% for the year, so take this opportunity to buy some shares. I did. The stock is trading at $6.88. One year ago, the price was $1.74. Can you see why I’m excited?
Nuclear Energy is Clean, Safe, and Sustainable
Coal is dirty and pollutes our atmosphere. Nuclear energy burns clean and produces zero carbon emissions. It requires a smaller geographical footprint and is considered by most in the scientific community to be the safest way to generate electricity. It’s far more sustainable than wind or solar because it can’t be adversely affected by the weather.
Why aren’t we seeing a bigger push for more nuclear power? There are fifty new nuclear plants being built around the world right now, but only two of them are in the United States. That could change if Congress passes the new infrastructure bill, which contains provisions for nuclear development. We’ll keep an eye on that for you in the coming weeks.
Share this article:
Disclaimer
This communication was produced by Prism MarketView. The information contained on this is ‘Paid Advertising’ for purposes of Section 17(b) of the Securities Act of 1933, as amended (together with the rules and regulations there under, the “Securities Act”). “PRISM” and its affiliates are compensated by respective clients for publicizing information relating to its client’s securities. For more information in terms of compensation received for services provided by PRISM see the pertinent advertising materials relating to the respective client. By accessing this Site and any pages thereof, you agree to be bound by the Terms of Use and Privacy Policy…
This communication was produced by Prism MarketView, “PRISM”. The information contained on this is ‘Paid Advertising’ for purposes of Section 17(b) of the Securities Act of 1933, as amended (together with the rules and regulations there under, the “Securities Act”). “PCG” and its affiliates are compensated by respective clients for publicizing information relating to its client’s securities. For more information in terms of compensation received for services provided by PRISM, see the pertinent advertising materials relating to the respective client. By accessing this Site and any pages thereof, you agree to be bound by the Terms of Use and Privacy Policy.
“PRISM” and its affiliates are not a registered or licensed broker, dealer, broker-dealer, investment adviser nor investment manager, nor does “PRISM” engage in any activities that would require such registrations. “PRISM” and its affiliates do not provide investment advice, endorsement, analysis or recommendations with respect to any securities, and its services to or statements about its clients should never be construed as any endorsement of or opinion about any security of any client. No information contained in this communication constitutes an offer to sell, a solicitation of an offer to buy, or a recommendation of any security or any other similar product or service regardless of whether such security, product, or service is referenced in this communication.
Our articles, reports/releases and videos are a commercial advertisement and are for general information purposes ONLY. We are engaged in the business of marketing and advertising companies for monetary compensation. We only publish favorable information because we are compensated to publish only favorable information. We are not objective or independent and have multiple conflicts of interest. The Profiled Issuers and parties hiring us have conflicts of interest.
This communication may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated, including, but not limited to, market conditions, regulatory developments, and other factors beyond the control of the profiled company. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date made. PRISM undertakes no obligation to update or revise any such statements.
The contributors may buy and sell securities before, during and after any particular article, report and publication. In no event shall “PRISM” or affiliates be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or made available by “PRISM”, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages.Further, nothing in this communication is intended to provide tax, legal, or investment advice and nothing in this communication should be construed as a recommendation to buy, sell or hold any investment or security or to engage in any investment strategy or transaction. Investing in micro-cap and growth securities is highly speculative and carries an extremely high degree of risk. It is possible that an investors investment may be lost or impaired due to the speculative nature of the companies profiled. Never invest in any stock featured by “PRISM” and its affiliates unless you can afford to lose your entire investment.We urge Investors to conduct their own in-depth investigation of the Profiled Issuers with the assistance of their legal, tax and investment advisers. An investor’s review of the Information should include but not be limited to the Profiled Issuer’s financial condition, operations, management, products or services, trends in the industry and risks that may be material to the profiled Issuer’s business and other information he and his advisers deem material to an investment decision. We encourage our readers to invest carefully and read the investor information available at the web sites of the U.S. Securities and Exchange Commission (SEC) at www.sec.gov and the Financial Industry Regulatory Authority (FINRA) at www.finra.org.
Zura Bio Limited (NASDAQ: ZURA) shares rose about 9.5% to $4.34 on Wednesday, making it the top gainer in the…
About the Author:
Kevin Flynn
A former financial professional and founder of AdvisorScale Financial Writing, Kevin lives in Leominster, Massachusetts with his wife Evelyn, two cats, and nine wonderful grandchildren.
