Oil prices have slipped on progress toward a Hormuz deal, which has eased some inflation concerns and softened expectations for aggressive US rate hikes. Lower energy cost pressures can draw more attention to long term power solutions that do not depend on fossil fuel supply routes. Nuclear energy stocks sit squarely in that conversation. This article highlights three nuclear energy stocks from our screener that investors may want on the watchlist.
The stocks covered below are just a starting sample, and the full nuclear energy screen surfaced 55 more companies with equally compelling narratives that are not included in this article. If you want to go deeper on nuclear energy stocks, head straight to the Nuclear Energy Stocks screener to identify and analyze the highest conviction opportunities.
Cameco (TSX:CCO)
Cameco is a Canadian nuclear fuel supplier that mines uranium, refines and converts it into fuel, and through its Westinghouse stake helps design and service nuclear reactors for utilities worldwide. The Uranium segment generated about CA$2.9b in revenue, Fuel Services added roughly CA$551 million, and Westinghouse contributed around CA$3.4b, with small amounts in Other and unallocated items. The company is a large player in the sector with a market value of roughly CA$57.0b.
Investors watching nuclear energy may consider Cameco for further research because it combines hard to replace uranium assets with exposure to the reactor side of the industry through Westinghouse. Analysts have published expectations of earnings growth potential and a higher target price than today. Recent results highlight how operational issues, production interruptions and a high P/S ratio can quickly pressure margins and sentiment. The company’s newer management team, major policy support for nuclear and a possible Westinghouse IPO all add moving parts that could reshape the story in the next few years. This makes a deeper look at Cameco’s contracts, balance sheet and project pipeline especially important.
Cameco’s uranium assets and Westinghouse link suggest a growth story that many investors may be only half seeing. Get the full picture with the analyst forecasts for Cameco and the key risk that could change the script.
Build your own nuclear energy shortlist
Cameco and the other two stocks in this article all surfaced from a single nuclear focused screen, but the real edge comes from setting your own filters. Use our flexible Screener to combine valuation, growth, balance sheet and risk checks into a custom watchlist, or lean on any of our curated Investing Ideas.
WSP Global (TSX:WSP)
WSP Global is a Montreal based consulting firm that plans, engineers, and manages large infrastructure and energy projects, including lower carbon solutions such as nuclear. The business is heavily weighted to the Americas, which produced about CA$8.4b of revenue, with EMEIA generating roughly CA$5.3b, Canada CA$2.8b, and APAC around CA$2.0b. The company is a major player in its field with a market value of approximately CA$24.4b.
WSP Global sits at the junction of three big themes that many investors care about right now: sustainable infrastructure, digital projects and cleaner energy. Analysts expect earnings to grow faster than revenue, helped by a shift toward higher margin advisory and environmental work and by investments in analytics and AI that aim to lift efficiency. At the same time, heavy use of acquisitions, reliance on public sector budgets and a higher debt load mean execution missteps or spending cuts could quickly affect that earnings story. The mix of solid growth expectations, an active M&A playbook and concentrated exposure to long term infrastructure trends makes WSP Global a stock that rewards a closer look at margins, backlog quality and balance sheet strength.
WSP Global’s push into higher margin advisory work and AI enabled efficiency has many investors focused on growth, but the real story sits in the balance between earnings, debt and acquisition risk inside the analysis report for WSP Global
Bird Construction (TSX:BDT)
Bird Construction is a Canadian contractor that builds and maintains complex industrial, infrastructure and institutional projects, ranging from nuclear and energy facilities to defense, healthcare and transport assets. The company generates all of its CA$3.5b of revenue from the general contracting sector in Canada, giving it a broad footprint across public and private capital projects. Bird Construction has a market value of about CA$3.9b.
Investors watching nuclear and power infrastructure may consider Bird Construction relevant because it is tied into Canada’s multi year build out of energy transition, data centers and public works. The company holds a record infrastructure backlog and a growing stream of recurring service contracts. Earnings forecasts are strong, and recent wins such as the Bell AI Fabric data center program and about CA$1b of nuclear and industrial awards underline the size of the opportunity. However, thin margins, a premium P/E and higher reliance on external borrowing mean execution risk is real. The tension between this growth pipeline, the new debt structure and margin pressure is where the investment case for Bird Construction really takes shape.
Bird Construction’s record infrastructure backlog and new nuclear and data center wins suggest a growth story that many investors may be underestimating. The real twist sits inside the analyst forecasts for Bird Construction
Seeking Alternatives Beyond Nuclear Stocks?
Fresh ideas move first. Stocks with building momentum often get re rated quickly once the crowd catches up. Scan these under the radar lists before the window narrows and consider them early.
- Spot cash rich businesses that are not overhyped by running the curated 12 high quality undervalued stocks while their potential is still flying under most investors' radars.
- Track where energy infrastructure spending is building momentum with a focused look at 36 power grid technology and infrastructure stocks before these stories are fully priced in.
- Review early movers in automation and factory upgrades with the hand picked 35 robotics and automation stocks while the growth narrative is still forming.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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