Three Nuclear Stocks Poised to Thrive in a Low-Carbon Future

The global energy transition is reshaping the investment landscape, and one sector often overlooked but increasingly critical is nuclear energy. With governments worldwide prioritizing decarbonization and reliable baseload power, nuclear utilities, uranium producers, and engineering firms are emerging as pillars of this shift. Below are three stocks positioned to capture long-term value in this revival.

1. Exelon Corporation (EXC): The U.S. Nuclear Powerhouse

Exelon is the largest operator of nuclear power plants in the United States, with 20 reactors providing nearly 20% of the nation’s nuclear-generated electricity. Its fleet is a cornerstone of grid stability, particularly in regions like Illinois and Pennsylvania, where coal retirements are accelerating the need for zero-emission baseload power.

Why Now?
- Regulatory Tailwinds: State policies such as Illinois’ Zero Emission Credit (ZEC) program have provided financial support to keep reactors operational.
- Carbon Pricing Gains: As carbon pricing mechanisms expand, nuclear’s low-carbon profile becomes a competitive advantage.
- Dividend Strength: Exelon has a 15-year history of dividend growth, supported by predictable cash flows.

Data Insight

Exelon’s stock has outperformed the S&P 500 over the past five years, rising ~35% compared to the index’s ~20% gain, reflecting investor confidence in its resilience and growth trajectory.

2. Orano (ORP.PA): The Global Uranium Leader

Orano, a French multinational formerly part of Areva, dominates the uranium supply chain, from mining to fuel fabrication. With operations in mines like McArthur River (Canada) and processing facilities worldwide, it supplies ~20% of the global uranium market.

Why Now?
- Uranium Supply Crunch: Global uranium production has stagnated while demand grows, driven by 30+ reactors under construction and plans for small modular reactors (SMRs).
- Price Recovery: Spot uranium prices have climbed ~40% since late 2022, with analysts forecasting further gains as utilities rebuild depleted inventories.
- Long-Term Contracts: Orano’s offtake agreements with utilities like EDF and TVA provide steady revenue streams.

Data Insight

Prices are projected to rise to $50/lb by 2027, from $42/lb today, according to the U.S. Energy Information Administration, fueling Orano’s margins.

3. BWX Technologies (BWXT): Engineering the Nuclear Future

BWXT is a specialized engineering firm supplying nuclear components, including fuel assemblies, reactor cores, and naval propulsion systems. It partners with the U.S. Department of Energy and innovators in advanced nuclear tech like NuScale Power.

Why Now?
- SMR Momentum: Small modular reactors, which BWXT designs for, are gaining traction. The U.S. Infrastructure Act allocated $6 billion to support their deployment.
- Government Contracts: BWXT secured a $1.8 billion contract in 2022 to modernize naval nuclear propulsion systems, ensuring stable revenue.
- Innovation Leadership: Its work on high-assay low-enriched uranium (HALEU) fuels positions it to dominate emerging markets for advanced reactors.

Data Insight

BWXT’s revenue has surged from $1.3 billion in 2019 to $2.2 billion in 2023, a 69% increase fueled by defense and advanced nuclear projects.

Conclusion: A Trio Anchored in Long-Term Value

Nuclear energy is no longer an “old economy” relic but a strategic asset in the fight against climate change. Exelon’s dominance in U.S. utilities, Orano’s control of uranium supply, and BWXT’s engineering prowess in advanced reactors create a robust portfolio.

• Exelon benefits from regulatory support and a dividend yield of ~3.5%, well above the S&P 500 average.
• Orano leverages a uranium price cycle that could double by 2030, with 10% annual revenue growth projected through 2027.
• BWXT capitalizes on SMR demand, with its backlog exceeding $3.5 billion—a testament to sustained demand.

These stocks offer investors exposure to a sector that will only grow in relevance. As governments worldwide commit to net-zero targets, nuclear’s role as a reliable, scalable clean energy source ensures these companies are positioned to deliver decades of returns.

Data as of Q3 2023. Past performance does not guarantee future results.