by Ian Cooper
Keep an eye on hot uranium stocks, like Cameco (CCJ).
After pulling back to about $47, Cameco just hit $50.73, and could test $60 shortly.
That’s because, over the last few days, Congress passed the Russian uranium import ban, which now unlocks about $2.7 billion to expand U.S. nuclear fuel production.
“The broader package also includes a ban on federal licenses for reactor fuel imported from or produced by entities controlled by Russia while adding China and China-controlled entities to the import blacklist,” according to UtilityDive.com.
In addition, according to MarketWatch.com, “A ban on U.S. imports of Russian uranium is set to shake up the market for nuclear power, and lift prices back above $100 a pound for the nuclear fuel which has been tight on supplies.”
Bank of America just added Cameco to its US 1 list – an idea from the firm’s universe of buy rated listed stocks. RBC Capital also just raised it price target to $75 from $70, with an outperform rating on the uranium stock.
And, we also have to consider that about 22 countries, including the U.S., Canada, the UK, and France pledged to triple their nuclear capacity by 2050 at the 28th Annual UN Climate Change Conference (COP28). According to Forbes, “About 175 more nations gave their tacit approval to nuclear by electing to triple their use of renewables by 2030 and phase down fossil fuels.”
Aside from Cameco, Uranium Energy Corp. (UEC), Energy Fuels Inc. (UUUU), and Denison Mines Corp. (DNN) should benefit as well.
Another top way to trade the uranium bull market includes:
Global X Uranium ETF (URA)
Look at the Global X Uranium ETF (URA), for example.
With an expense ratio of 0.69%, the ETF invests in companies involved in uranium mining and production, including those in extraction, refining, exploration, or manufacturing of equipment for the uranium and nuclear industries.
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