3 stocks can ride the nuclear power revival

President Trump recently signed an executive order to promote the nuclear energy industry. The president hopes to overhaul the Nuclear Regulatory Commission and accelerate the development of new nuclear power reactors in the country. This order could power the industry’s revival.

Nuscale Power (NYSE: SMR),,,,, Zodiac energy (NASDAQ: CEG)and Canco (NYSE:CCJ) Stand out and become a contributor to some Fool.com as nuclear energy stocks can benefit from the Renaissance of the industry. A closer look at why they can generate strong returns for investors if the nuclear energy industry revival gains momentum.

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Reuben Gregg Brewer (Nuscale Power): When President Donald Trump signed an executive order that would help speed up the adoption of nuclear power in the United States, Nuscale Power's stock rally came. The same is true for many nuclear power stocks, but the Nuscale rally restored the stock to its all-time high.

SMR Chart
YCHARTS SMR data

There are both risks and opportunities here. The price increase in Nuscale Power is driven by emotions, as the company technically has no products to sell. However, the small modular nuclear reactor (SMR) it is trying to build is a very exciting advancement in nuclear power.

SMR is built in a factory, which makes it cheaper, easier and faster to build than large on-site nuclear power plants. Their small size also means they can be transported where they are needed and brought close to the center of the population. Meanwhile, including modern safeguards, reduce the risk of a compelling collapse.

If Nuscale Power can start selling its SMR, it will have a huge opportunity as demand for nuclear power increases. But what’s most exciting here is that the biggest turning point in the business is likely to take shape later in 2025. Then Romanian power company Ropower will make a final call on whether it will buy six SMRs from Nuscale Power. Once the first deals are reached, other deals may be easier to obtain.

There must be a lot to take Nuska’s power before there is no sustainable profitable business, making execution a careful risk. But if the Domino people keep in place, the nuclear Renaissance could lead to long-term growth for early investors in that growth stock.

Matt Dilallo (Zodiac Energy): Constellation Energy is the country's leader in nuclear energy production. It currently has 22.1 GWS competitive nuclear Almost four times the power generation capacity of competitors Vistur (6.3 GWS).

Different Utilities Under a long-term, long-term fixed-rate purchase agreement (PPA) (PPA), the constellation will own power generation assets and distribute electricity to customers, selling the electricity they produce to other utilities and large enterprise customers. This strategy can enable it to cash out at higher power rates.

The company is investing heavily in expanding its clean energy operations. It's with Microsoft The second half of last year supported the restart of its Three Mile Island Unit 1 nuclear power plant, and it closed for economic reasons a few years ago. But Microsoft needs clean energy to support its cloud and artificial intelligence growth, which has led the tech giant to sign a 20-year contract for all the powers to produce the nuclear power plant return Online in 2028. constellation Exploring too Other nuclear power growth opportunities, including SMR.

Most importantly, the constellation is investing in other cleaner energy sources such as renewable energy and natural gas. It is significantly expanding its leading clean energy operations by Calpine, a leader in accessing gas and geothermal energy.

These investment position signs for delivery Powerful Revenue growth in the next few years. It can grow its adjusted operating revenue in 2030 at a CAGR of over 13% in a standalone manner. If its Calpine transaction is closed, it will grow faster. Meanwhile, nuclear revival can power additional growth in the long run.

Neha will call (Cameco): President Trump hopes to speed up the design and establishment of nuclear reactors and quadruple the capacity between 2050 and 2050 to make it a major source of power. But while investors expect companies to build nuclear reactors and generate nuclear energy to be the biggest beneficiaries of Trump's pro-nuclear stance, the supply aspect of the equation has not attracted attention.

The problem is that nuclear power plants operate on uranium. This means that as more and more nuclear reactors come online, the demand for uranium should also increase. This makes stocks like Cameco a solid choice to play Trump’s nuclear Renaissance. In fact, Cameco was very optimistic about the uranium industry before Trump signed the executive order.

In early May, Cameco estimated that by 2045, nearly 70% of the total uranium fuel demand estimated by global nuclear reactors are still being discovered. In other words, the upcoming nuclear reactor must buy nearly 3.2 One billion One pound of uranium is used to power plants. For perspectives, only 119 million Uranium pounds were signed by utility companies in 2024 under a long-term contract.

Since Cameco is one of the world's largest producers of uranium, its prospects are closely followed by the uranium and nuclear energy industries. Cameco has witnessed a rise in long-term uranium contracting activity. On top of that, Cameco also owns a 49% stake in Westinghouse Electric, which provides nuclear technology, equipment, fuel and services to nuclear reactors. Therefore, Westinghouse provides Cameco with an advantage over other uranium miners.

Cameco is also a financially strong company that has paid dividends every year since 1991, and has also increased it by 33% last year. Putting all of this together, Cameco looks like a smart core inventory that can be purchased and held.

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Matt Dilallo has no position in any of the stocks mentioned. Neha Chamaria has no position in any of the stocks mentioned. Reuben Gregg Brewer has no position in any of the stocks mentioned. Motley Fool has a place and recommends Constellation Energy and Microsoft. Motley Fool recommends Cameco and Nuscale Power and recommends the following options: January 1, 2026, Microsoft $395 Phone, Short January 2026, Microsoft $405 Phone. Motley Fool has a disclosure policy.

Motley Fool initially published 3 stocks to ride the nuclear power revival