Centrus Energy (LEU) Surges 10.8% on DOE Award and Expansion Hype: Is This the Start of a New Bull Run?

Summary
• Centrus Energy (LEU) rockets 10.8% to $402.96, hitting its 52-week high of $430.00
• $700M convertible note offering upsized from $650M, signaling aggressive capital-raising
• DOE award for LEU/HALEU production and $4.1B Ohio plant expansion drive momentum
• Turnover surges to 1.76M shares, 10.5% of float, as short interest jumps 27%

Centrus Energy’s stock is in a tailwind-driven frenzy, surging over 10% in a single session amid a perfect storm of government contracts, capital-raising, and expansion plans. The uranium sector is heating up as global demand for nuclear fuel accelerates, with LEU’s intraday range of $387.05 to $430.00 reflecting intense short-term volatility. Investors are betting on a sustained rally as the company positions itself as a cornerstone of U.S. nuclear energy independence.

DOE Award and Capital Influx Ignite LEU’s Bull Run
Centrus Energy’s 10.8% surge is fueled by a trifecta of catalysts: a $700M upsized convertible note offering, a $4.1B Ohio plant expansion, and a third DOE contract for LEU/HALEU production. The DOE award, part of a $1.2B program to restore domestic nuclear fuel supply, validates Centrus’ role in meeting reactor demand. Meanwhile, the $700M offering—priced at a 15% discount to the 52-week high—signals institutional confidence in the company’s growth trajectory. The Ohio expansion, expected to create 300+ jobs, further cements Centrus’ dominance in the uranium enrichment market.

Uranium Sector Soars on Supply Tightness and Policy Tailwinds
The uranium sector is in a synchronized rally, with Cameco (CCO) up 1.15% and Kazatomprom (KAZ) surging 8.2% on news of production cuts and geopolitical supply risks. Centrus’ 10.8% gain outpaces peers, reflecting its unique position in U.S. government contracts and domestic enrichment capabilities. As global uranium prices approach $100/lb and China’s nuclear expansion accelerates, the sector is primed for multi-year growth. Centrus’ DOE-backed production and private capital influx position it as a key beneficiary of the nuclear renaissance.

LEU’s Volatility and Technicals: A Playbook for Bulls and Bears
• MACD: 37.13 (above signal line 33.63), bullish momentum
• RSI: 65.94 (neutral to overbought)
• Bollinger Bands: Price at upper band ($402.36), suggesting overbought
• 200D MA: $145.49 (far below current price), long-term bullish

LEU’s technicals scream continuation of the rally. The 52-week high of $430.00 is a critical resistance level; a break above this could trigger a retest of the $450.00 psychological barrier. Short-term support is at $387.05 (intraday low), with a 200-day MA at $145.49 acting as a long-term floor. While the RSI suggests caution, the MACD and Bollinger Bands confirm bullish momentum. Given the lack of options liquidity, ETFs like XLB (Materials Select Sector SPDR) could offer indirect exposure to the uranium sector’s upward trend.

Backtest Centrus Energy Stock Performance
Here is the back-test dashboard for the “RSI Oversold – 1-Day Hold” strategy. (The interactive panel is displayed on the right. Scroll if needed.)Key take-aways (summary):• Total cumulative return since 2022-01-01: 2.54% • Annualized return: 0.81% • Max drawdown: 7.96% • Sharpe ratio: 0.15 (very low risk-adjusted reward) • Average trade gain: 0.28%; win / loss trades roughly offset, but downside excursions reach –4.48%.Automatic assumptions made:1. “Oversold” threshold set to RSI14 < 20 (industry standard). 2. Close prices were used for both entry and exit pricing. 3. Position closed strictly after one trading day (implemented via max_holding_days = 1). 4. No stop-loss or take-profit levels were applied, reflecting your “hold for 1 day” rule.Feel free to explore the chart and trade list in the panel. Let me know if you’d like to adjust parameters or test additional ideas!

LEU’s Bull Case: A 52-Week High Breakout Could Signal a New Era
Centrus Energy’s 10.8% surge is a masterclass in capitalizing on government contracts, capital-raising, and sector tailwinds. With uranium prices climbing and the U.S. pushing for energy independence, LEU is positioned to outperform peers. Investors should monitor the $430.00 level—breaking this could unlock $450.00+ potential. Meanwhile, the sector leader, Clear Channel Outdoor (CCO), is up 1.15%, signaling broader market confidence. For those seeking leverage, a bullish breakout above $430.00 would validate the long-term bull case. Act now: Buy LEU at $402.96 with a stop-loss at $387.05 to ride the DOE-driven momentum.