Nuclear power, and uranium by extension, has earned a less than stellar reputation over the past few decades. The nuclear disasters of Chernobyl and Fukushima have undoubtedly hurt demands for uranium and the stocks of the company that mines for it.
Recently though, developing nations are looking for power sources that can keep up with the rapid expansion of their industries. This has spurred demand for uranium to increase and, despite the ongoing concerns, uranium stocks remain as one of the best-performing commodities second only to gold.
But investors are confronted with the questions, which uranium stocks are the best among a lot of companies that deal with uranium.
The Best 10 Uranium Stocks we're watching in 2022
Well, we have condensed in this list 10 of the best uranium stocks along with a quick profile of each company's recent performance.
1. Uranium Royalty Corp. (NASDAQ: UROY)
Market Value: $276.47 Million
The company makes investments in uranium royalties and other uranium-driven finances. Compared to most companies dealing in uranium, the company is quite young -- it was only founded in 2017. Despite the freshness, the company has made quite the splash with returns reaching 230% for its investors over the last 12 months.
Some of the notable projects where the company holds royalty interests are Church Rock, Dewey-Burdock, Lance, Roca Honda, Reno Creek, Roughrider, and Michelin, among others. Currently, Uranium Royalty Corp. is experiencing a 52-week with a price of $3.58 per share. The target price is $3.6 since April of this year.
2. Lightbridge Corporation (NASDAQ: LTBR)
Market Value: $41.55 Million
LTBR might not necessarily be the largest company on this list, but its history and experience that date back to the 1990s have certainly served it well. The company mainly focuses on nuclear power technology development and also offers nuclear power consultancy. This has allowed it to maintain a position of authority in matters of nuclear power and environmental protection.
Over the past year, investors have seen more than 52% return on investment from the company. The company started 2021 strong with the first-quarter report of $15.2 million of revenue. This is slightly lower than the previous quarter's cash flow of $21.5 million.
The largest hedge fund to currently be investing in the company is Schonfeld Strategic Advisors with 15,300 shares worth more than $98,000.
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3. Energy Fuels Inc. (NYSE: UUUU)
Market Value: $968.14 Million
The company is Colorado-based and has been in operation since the late 1980s. One of the more profitable investments, the company has garnered investors 312% in returns in the past 12 years.
The company produces uranium and vanadium with an expansion in the rare earth business in recent years. Despite their relative health, the company has missed its recent estimates and earned $0.35 million in revenue. This is down 10% from their revenue earnings year-on-year. This has been explained to be due to the pandemic restriction hampering their mining operations.
There are currently 12 hedge funds investing in the company with Citadel Investment Group as the largest shareholder among them with $2 million.
4. Denison Mines Corp. (NYSE: DNN)
Market Value: $899.19 Million
The Canada-based company deals in the exploration, acquisition, and production of uranium. It was established in 1997 and was formerly known as the Uranium Corporation until it changed its name in 2006. Their most well-known uranium mines are in Blind River and Elliot Lake but they have recently expanded to other areas as well.
Investors of the company have seen a return on their investment of 195% over the last 12 months alone. Stocks have also increased 5% when they recently announced their plans to capitalize on a newly-found uranium-rich deposit in McClean Lake. This signifies more growth for the company's operations ahead.
There are currently 10 hedge funds currently investing in the company with a total stake value of $18.1 million. This is a notable increase from last quarter's numbers of $7.6 million.
5. Uranium Energy Corp. (NYSE: UEC)
Market Value: $536.47 Million
The Texas-based company has been dealing in the exploration and mining of uranium since its establishment in 2003. The company operates in several places in North and South America and its main projects include Palangana, Goliad, Burke Hollow, Longhorn, Salvo, Anderson, Workman Creek, and Los Cuatros among others.
The returns that have been offered to investors have exceeded 213% over the past 12 months. Investors also received more pleasant news with the recent announcement of their restarting the Burke Hollow ISR project in Texas -- proclaimed to be the largest of its kind in the USA.
By the end of the first quarter of this year, there are currently 7 hedge funds investing in the company at a total value of $12.3 million. This is down from the previous quarter's 10 hedge funds.
6. Rio Tinto Group (NYSE: RIO)
Market Value: $186.01 Billion
This company is both massive and historic and it definitely shows in the way it conducts business. There is a level of experience that comes with more than 120 years of existence that other companies can hardly replicate.
Apart from uranium, the company also has interests in iron ore, copper, diamonds, gold, and uranium, among other metals. The company also has everything from underground mines, mills, refineries, smelters, power stations, and research and service establishments. It really is one of the largest mining companies in the world in terms of market capitalization.
In the past 12 months, the company has offered investors 56% returns on their investments and has recently announced their starting production of lithium batteries in California.
There are currently 25 hedge funds investing in the company with a total of $1.5 billion.
7. NexGen Energy Ltd. (NYSE: NXE)
Market Value: $2.40 Billion
Another one of our very companies, NexGen Energy has only been around since 2011. That being said, the company has provided 222% returns on investments in the past 12 months. In the short time of the company's existence, the operations have expanded to exploration, development, and acquisition of uranium-related projects.
The most notable of their projects is the Rook 1 Project that consists of 32 contiguous mineral claims over 35,065 hectares located in the Athabasca Basin of Saskatchewan region.
13 hedge funds are investing in the company with the largest being Falcon Edge Capital investing a total of roughly $22.7 million.
8. BHP Group (NYSE: BHP)
Market Value: $230.82 Billion
This is another of those very historic companies that are more than a hundred years old. The Australian-based company was founded in 1885 and deals in a diverse range of interests in mining, with stakes in oil, gas, copper, silver, zinc, and uranium, among other resources.
In March, the company announced an increase of its quarterly dividend to the tune of more than $2 per share. With the promise of a regular paying dividend that increases from time to time, investors have treated the stocks of this company as great options for dividend growth investment.
There are currently 23 hedge funds investing in the company with Fisher Asset Management leading the pack with a share worth $553 million.
9. Ur-Energy Inc. (NYSE: URG)
Market Value: $299.06 Billion
This is a Colorado-based company that engages in the mining, recovery, and processing of uranium. They have a massive array of projects which is surprising since it has only been around since 2004.
In the past 12 months, the company has provided investors with a 152% return on their investment. In Lost Creek alone the company possesses 1,800 unpatented mining claims with 3 mineral leases in Wyoming. This is in addition to the 12 mining projects it already has throughout the United States.
There are about 4 hedge funds tied up in the company investing a total worth of $6 million. Higher than the previous quarter's amount of $4.8 million.
10. Cameco Corporation (NYSE: CCJ)
Market Value: $7.30 Billion
Though certainly not the largest company in this list, take a moment to consider that as of last quarter, 30 hedge funds are investing in this company -- the most of any company on the list. Consider also that the firm is the second-largest producer of uranium in the world -- accounting for 18% of the global production.
In the past 12 years, the company has provided investors more than 100% of returns and reported a revenue of $290 million in the first three months of 2021. The largest hedge fund invested in the company is Kopernik Global Investors with $163 million worth of shares.
Bottom Line
Though uranium stocks have indicated the ability to increase despite unfavorable market conditions, this is by no means a guarantee of profits.
Nothing in the market is certain and some people have lost money investing in gold. It's still much better to be on top of market news and invest only after proper research.
Look into market forecasts and take the overall health -- or lack thereof -- of a company before placing bets. Doing so will ensure you make no mistakes and get as much you can from the resource's value.
