Why nuclear stocks of constellation energy, Vestra and Oklo popped up this morning

Stakes in nuclear power producers Zodiac energy (NASDAQ: CEG),,,,, Vistur (NYSE: VST)and OK, hey (NYSE: OKLO) (In fact, Oklo is more like a nuclear startup) In the Monday morning deal, everyone is higher. The move may be inspired by wider investor enthusiasm after the Trump administration announced the temporary lifting of tariffs on China over the weekend - but that's not the only reason nuclear stocks are red hot today.

As The New York Times The Trump administration plans to issue "several" execution orders in the United States aim to accelerate the construction of new nuclear power plants and reactivate new nuclear power plants, reported Friday. The actual language of the report is actually saying that the government calls for "speed and decisive" action that will lead to a "wholesale revision" of federal security guidelines, aimed at reducing the traditional Chinese tape festival and keeping the project moving forward.

The anti-Vistra Stock leads the nuclear package today, up 6% at 10:40 AM Startellation, up 5.9% and Oklo lags 3.3%.

Image source: Getty Images.

How big is this nuclear news, and can it justify the change in stock prices? according to erathe goal is to increase nuclear power capacity to 400 GW by 2050, so what we are talking about here is considerable development.

The president's expected actions not only greatly increase revenue, but also help with the cost aspect of companies such as Constellation, Vistra and Oklo. As era It was observed that the cost of two newest nuclear reactors built in the United States was twice as much as their initial construction costs and took seven years than planned completion, mainly due to the traditional Chinese tape that slowed down the process and increased regulatory compliance costs.

Lower costs and higher sales commitments get turbo gains in these companies. No wonder investors are excited.

That is, let's not lead here. According to Statista, it takes 11 years to build an average nuclear power plant in the United States. Shaved the "extra" seven years of construction of the last few factories, we are still considering the prospects of a factory announced today, not yet completed four years - President Trump will not be in the office, and U.S. nuclear energy policy may change again. Therefore, the success of these stocks cannot be guaranteed.

I'm not particularly impressed by the valuation of all these stocks or their dividends. I think Vistra stock has a 22-fold revenue cost, which is not bad, especially with analysts predicting a 21% increase in earnings over the next five years. But the zodiac revenue is 28 times, and analysts only believe its earnings have increased by 7% or less. Both utilities also paid a dividend yield of only 0.6%, which seems very tragic in utility stocks.

(Oklo, of course, has no one at all valued stocks as a startup. It also has no dividends).

Still, if you're ready to invest in nuclear stocks (the nuclear stock of these three), I suspect the safest bet on the promised nuclear Renaissance is Vistra. In addition to providing a reasonable PEG ratio around 1.0, Vistra is three stocks that report normal cash flow positives – nearly $3 billion in the past year, which actually makes the stock’s cash flow better than PEG!

Debt remains a problem, granted, and Vestera has $17 billion more debt on its balance sheet than cash, which raises the company's corporate value to FCF ratio a little, up to 21 times. However, given the expected growth rate - and assume viscosity Hit Of course, this growth rate - in my opinion, Vistra stock seems to have the best opportunity to produce a "nuclear winner" for investors.

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Rich Smith has no position in any of the stocks mentioned. Motley fool has a position and recommends zodiac energy. Motley Fool has a disclosure policy.

Why was the nuclear inventory constellation energy published this morning, Vistra and Oklo published this morning