Centrus Energy (LEU) Plummets 7.9%: Is This a Buying Opportunity or a Warning Sign?

Summary
• Centrus Energy (LEU) trades at $347.13, down 7.9% intraday after opening at $351.00
• Intraday range spans $336.88 to $364.65, reflecting volatile trading
• Recent DOE award for LEU production and $700M convertible notes highlight strategic momentum
• Dynamic PE ratio of 56.33 suggests stretched valuation amid sector tailwinds

Centrus Energy’s sharp intraday decline has sparked urgent scrutiny from investors. The stock’s 7.9% drop from its opening price to $347.13 underscores a critical inflection point, driven by a mix of sector-specific catalysts and technical pressures. With the nuclear renaissance gaining momentum and Centrus securing key DOE contracts, the market is now weighing whether this selloff signals a correction or a deeper shift in sentiment.

Profit-Taking and Valuation Concerns Trigger Sharp Decline
The intraday selloff in Centrus Energy reflects a confluence of factors. First, the stock’s 7.9% drop follows a recent 401% year-to-date rally, triggering profit-taking by short-term traders. Second, the company’s dynamic PE ratio of 56.33—well above the sector average—has raised concerns about overvaluation, particularly as the market digests its $700M convertible notes offering and multi-billion-dollar Ohio plant expansion. While the DOE’s latest LEU award reinforces Centrus’s strategic role in the nuclear renaissance, the sharp correction suggests investors are recalibrating expectations amid extended technical indicators like the RSI (59.18) and bearish K-line patterns.

Technical Indicators Signal Key Levels for Positioning
• 200-day average: 157.07 (far below current price)
• RSI: 59.18 (neutral but trending lower)
• MACD: 36.59 (bullish divergence with price)
• Bollinger Bands: $276.15 (lower band) vs. $441.22 (upper band)
• K-line pattern: Short-term bearish trend, long-term bullish

Centrus’s technical profile presents a nuanced setup. The stock is testing its 30-day support range of $396.99–$401.33, with the 200-day average at $157.07 offering a distant floor. While the RSI suggests the selloff isn’t yet overbought, the MACD’s positive divergence hints at potential short-term stabilization. Aggressive bulls may consider buying dips into the $336.88 intraday low, while cautious investors should monitor the 52-week high of $464.25 for trend confirmation. The absence of leveraged ETFs in the data limits direct sector exposure, but BWX (BWX) remains a key sector leader with a -0.63% intraday decline.

Backtest Centrus Energy Stock Performance
I attempted to generate the list of –8 %-intraday-plunge dates automatically, but the event-date calculation step did not complete successfully (the back-end reported a “code_result” issue). To move forward we have two options:1. Retry the event-date extraction – I can run the calculation again, making sure the intraday-low and prior-close fields are explicitly referenced. – This should give us the exact trade dates that meet “Low ≤ 0.92 × Prev Close” from 2022-01-01 to 2025-10-22, after which I’ll launch the event back-test.2. Proceed with an approximation (use daily close-to-close drops ≥ 8 %) – This is quicker, but the definition is slightly different from an intraday plunge (it uses Close vs. Prior Close instead of Low vs. Prior Close). – If this is acceptable, I can compute the event dates directly and run the back-test right away.Please let me know which path you prefer (retry precise intraday or use the close-to-close approximation), or if you’d like to adjust any other parameters (e.g., test period, holding window, risk controls, etc.).

Act Now: Centrus at a Pivotal Crossroads
Centrus Energy’s 7.9% intraday drop marks a critical juncture for investors. While the stock’s long-term fundamentals—driven by its HALEU monopoly and DOE contracts—remain intact, the sharp correction reflects near-term valuation concerns and profit-taking. Key levels to watch include the $336.88 intraday low and the 52-week high of $464.25. For now, the sector leader BWX (-0.63%) offers a proxy for nuclear fuel production momentum. Investors should prioritize liquidity and position for a potential bounce off the $336.88 level, but remain cautious until the RSI breaks above 60 to confirm a reversal.