Best nuclear energy stocks to watch

Nuclear Energy stocks in brief

Nuclear energy stocks are shares in companies involved in the lifecycle of nuclear power. They include businesses mining uranium — the primary fuel used in nuclear reactors — at source, which are most impacted by commodity pricing, in addition to reactor manufacturers, which engage in some of the most complex engineering on the planet, and nuclear power plant operators, which generate consistent revenue from selling energy but are subject to high levels of regulation and operational costs.

The sector is perhaps divisive from an ESG perspective. While nuclear is considered to be crucial to a net zero world given its ability to provide a steady supply of energy with minimal greenhouse gas emissions, the radioactive waste the sector creates can last for millions of years. Nuclear is also somewhat distrusted given the Chernobyl and Fukushima disasters, regardless of advancements since.

As with all sectors, there are advantages and drawbacks to nuclear energy stocks. On the plus side, nuclear power provides a consistent and reliable source of energy, making it a reasonable complement to renewable sources like wind and solar. This can also make the sector attractive to income investors.

Nuclear is also green (though not strictly renewable), and despite the associated radioactive waste, produces significantly fewer greenhouse gas emissions compared to fossil fuels like oil, coal or gas. The sector is also increasingly seeing better government support, especially as hydrocarbons are expected to run low over the next few decades. This all makes for a high growth sector — which also means increased technological advancements — for example, in small modular nuclear reactors.

However, building a uranium mine or a nuclear power plant is usually very expensive, and very time-consuming. Construction can cost billions of dollars, and it often takes over a decade to go from first spade to operational. This can represent a significant risk, especially as uranium prices and government policies fluctuate. Investors are often also wary of the costs associated with decommissioning mines or plants, especially as they come closer to the end of their useful life.

There’s also inarguably safety concerns and public perception challenges, and most importantly, the well-publicised difficulty of disposing of nuclear waste. It remains dangerous for thousands of years, and there’s even an entire branch of symbolism — nuclear semiotics — or long-term nuclear waste warning messages, intended to deter human intrusion at nuclear waste repositories over the next few thousand years.

Overall though, all energy sources have their own negatives, and nuclear appears to sport fewer downsides than most.

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Investors look to grow their capital through share price returns and dividends - if paid.

But the value of investments can fall as well as rise, past performance is no indicator of future returns, and you could get back less than your original investment.

We also offer many emerging markets-focused ETFs, including the popular VanEck Uranium and Nuclear Technologies UCITS ETF, which allows you to gain exposure to the performance of companies involved in the nuclear energy industry, from reactor manufacturers to uranium miners. It sports total net assets of $413.8 million and a moderate total expense ratio of 0.55%.

Top Nuclear Energy stocks to watch

The following are the ten largest holdings of the VanEck Uranium and Nuclear Technologies UCITS ETF as of March 2025. These are not recommendations but are some of the most popular stocks in the sector. Given the high capital costs associated with nuclear, many of these companies are market titans also diversified into other sectors.

1. Cameco (NYSE: CCJ)
2. BWX Technologies (NYSE: BWXT)
3. NexGen Energy (NYSE: NXE)
4. Samsung C&T (KRX: 028260)
5. IHI (TSE: 7013)
6. AtkinsRealis Group (TSX: ATRL)
7. Jacobs Solutions (NYSE: J)
8. Hitachi (TSE: 6501)
9. Oklo (NYSE: OKLO)
10. Mitsubishi Heavy Industries (TSE: 7011)

Cameco (NYSE: CCJ)

Cameco is one of the world's largest uranium producers, operating major mines in Canada and Kazakhstan with a focus on sustainable and safe mining practices. Its uranium supplies fuel for nuclear power plants globally — and the company has experienced significantly increased demand for its uranium, due to the global shift towards clean energy and the resurgence of nuclear power.

Cameco’s key advantage is in its extensive high-grade uranium reserves, positioning the business well to meet the rising demand. However, the company faces challenges from fluctuating uranium prices and geopolitical risks associated with its Kazakhstan locations.

BWX Technologies (NYSE: BWXT)

BWX Technologies specialises in designing nuclear components and power generation systems, primarily for the US government, including the Navy's nuclear propulsion systems. The company also provides nuclear fuel and services for reactors and medical isotopes.

The business enjoys a strong economic moat due to its unique position as a key supplier of nuclear technology to the US government, ensuring a very reliable revenue stream. However, this reliance on government contracts may be a double-edged sword and could pose risks if federal budgets shift under an unpredictable Trump regime.

NexGen Energy (NYSE: NXE)

NexGen Energy is a Canadian company focused on the exploration and development of uranium projects, particularly in the Athabasca Basin — which is widely regarded as the best uranium address in the world. The company's flagship project, Rook I, is considered to be one of the largest undeveloped uranium deposits globally.

NextGen’s possession of high-quality uranium assets could position it as a significant supplier in the nuclear energy market. However, as a company still in the development phase of the Lassonde Curve, there are typical operational and financial risks.

Samsung C&T (KRX: 028260)

Samsung C&T operates in multiple sectors, including engineering, construction, trading, investment, fashion, and resorts. The company has also been involved in significant infrastructure projects across the world.

Samsung C&T is now focusing on expanding its renewable energy projects, in line with global sustainability trends. Its diversified business portfolio spreads risk across multiple industries and provides multiple revenue streams, though it’s worth noting that underperformance in one sector could impact overall profitability and strain management resources.

IHI (TSE: 7013)

IHI is a Japanese engineering company engaged in aerospace, energy, industrial machinery, and infrastructure. The company has recently been focusing on renewable energy solutions, such as offshore wind turbines and develop and constructing nuclear fuel cycle systems.

IHI enjoys broad engineering expertise, allowing it to participate in diverse high-tech projects and quickly adapt to changing market demands. However, the company faces intense competition in its various markets, which continue to pressure profit margins and require continuous innovation — which is expensive.

AtkinsRealis Group (TSX: ATRL)

AtkinsRealis Group, formerly SNC-Lavalin, is a Canada-based engineering and construction services company. The rebranding to AtkinsRealis reflects a strategic shift to integrate its acquired Atkins business and strengthen its global presence.

The firm has a strong presence in infrastructure and engineering sectors worldwide, offering comprehensive services across project lifecycles. However, past legal issues have tarnished its reputation, creating challenges in securing new contracts and necessitating efforts to rebuild trust with clients and shareholders.

Jacobs Solutions (NYSE: J)

Jacobs Solutions is a US technical professional services firm offering engineering, technical, professional and construction services. The company has expanded through strategic acquisitions, including a merger with CH2M Hill and the acquisition of Wood Nuclear. In 2024, Jacobs spun off its Critical Mission Solutions and Cyber and Intelligence Government Services businesses, which merged with Amentum to create a new company.

Jacobs enjoys a global footprint and caters to various industries and government sectors. However, the complexity of managing its vast portfolio has occasionally seen operational challenges.

Hitachi (TSE: 6501)

Hitachi is a Japanese multinational with operations spanning information technology, energy, industry, mobility and smart life sectors. The company has undergone a significant transformation over the past few years and is now seen as a leading provider of industrial software and hardware, benefiting from the rising demand for green energy.

Hitachi focuses on data monetisation and industrial AI, which positions it as a significant player in Japan's tech transformation. However, challenges persist with expansion abroad and cost inflation at its engineering projects, requiring strategic management to maintain the growth trajectory.

Oklo (NYSE: OKLO)

Oklo specialises in the development of small modular reactors for nuclear energy production. The company has gained attention due to significant investments from tech giants like Amazon and Google — and like Rolls-Royce, is at the forefront of the developing sector.

Oklo is well-known for its innovative approach to nuclear energy, offering safer and more cost-effective solutions compared to traditional reactors. However, as a pioneer in this field, it faces regulatory hurdles and public perception challenges associated with nuclear technology.

Mitsubishi Heavy Industries (TSE: 7011)

Mitsubishi Heavy Industries is a Japanese multinational engineering and manufacturing company with segments across aerospace, defense, energy, shipbuilding, and industrial machinery. The company plays a key role in Japan's defense sector and is a major producer of gas turbines and power systems.

Recently, MHI has been expanding its role in carbon capture and hydrogen technologies, aligning with Japan's decarbonisation goals. However, the company faces challenges from global economic fluctuations and supply chain disruptions, which can impact its large-scale projects.

Nuclear Energy stocks summed up

• Nuclear Energy stocks are shares in companies involved in the lifecycle of nuclear power, including miners, reactor manufacturers and power plant operators
• Nuclear power provides a consistent, green and reliable source of energy
• Challenges include safety concerns, public perception issues and the disposal of nuclear waste
• The sector is perhaps divisive from an ESG perspective