Energy prices have started to stabilize, and that removes one of the biggest wild cards for inflation. When the cost of power is less volatile, investors often pay closer attention to businesses that can deliver reliable baseload energy. Nuclear energy stocks sit right in that conversation. This article walks through three stocks from our Nuclear Energy Stocks screener that could help you think through this theme in a more focused way.
The stocks covered below are just a small sample, and the full Nuclear Energy Stocks screen surfaced 32 more companies with equally interesting narratives that are not included in this article. If you want to go deeper into nuclear energy stocks right now, head straight into the Nuclear Energy Stocks screener to identify, compare, and analyze potential high conviction ideas.
BWX Technologies (BWXT)
BWX Technologies is a long established specialist in nuclear components, supplying naval reactors, nuclear fuel, steam generators, fuel handling systems, waste containers and lifecycle services to government and commercial customers. Most of its revenue comes from Government Operations at about US$2.4b, with Commercial Operations contributing about US$1.1b. The stock is a mid sized nuclear contractor with a market value of roughly US$15.4b.
BWX Technologies provides exposure to nuclear propulsion and power at a time when governments are prioritizing energy security and defense. The company has a record multi year backlog tied to large U.S. Navy contracts and growing work in small modular reactors, microreactors and advanced nuclear fuels, which supports current earnings and cash flow expectations. On the other hand, the stock trades at a high P/E multiple and carries meaningful debt, and a large share of its revenue depends on government budgets. For investors who can accept those trade offs, the mix of recurring defense work and emerging nuclear projects may make BWX Technologies worth a closer look.
BWX Technologies sits at the crossroads of defense contracts and emerging small modular reactors, yet the real story may be hiding in the 3 key rewards and 1 important warning sign
Build your own nuclear energy shortlist
BWX Technologies and the two other nuclear stocks in this article all surfaced from a single Simply Wall St screen, but the real edge comes when you set the filters yourself. Use our customisable Screener to blend valuation, growth, balance sheet and risk checks, or rely on the ready made themes in our Investing Ideas.
American Electric Power Company (AEP)
American Electric Power Company is one of the largest regulated utilities in the US, generating and delivering electricity across multiple states using a mix of coal, gas, nuclear and renewables. Most of its revenue comes from Vertically Integrated Utilities at about US$13.2b and Transmission and Distribution Utilities at roughly US$6.4b, with additional contributions from AEP Transmission Holdco at about US$2.3b and Generation & Marketing at around US$3.1b. The stock is a large cap utility with a market value near US$68.8b.
American Electric Power Company is drawing attention because it sits at the heart of two themes: data center driven load growth, and a large US$78b capital plan focused on transmission, grid reliability and cleaner generation, including future small modular reactors. Regulatory approvals, federal support such as the US$3.26b Department of Energy loan for AEP Texas, and contracted large load additions give the company a long runway of potential projects. At the same time, heavy capex, equity raises, and pressure on margins and free cash flow keep funding risk front and center for shareholders. For investors who want regulated exposure to nuclear and power grid development, AEP’s mix of growth ambition and balance sheet trade offs makes it a story worth examining more closely.
American Electric Power Company’s massive US$78b capex pipeline and data center load story can look exciting, yet the real tension sits in how that growth plan meets funding and regulatory risk in the 1 key reward and 2 important warning signs (1 is major!)
GE Vernova (GEV)
GE Vernova is an energy equipment and services company that helps generate, move, and manage electricity across gas, nuclear, hydro, wind, solar, storage, and grid software. It earns most of its revenue from Power at about US$21.0b, with Wind at roughly US$8.5b and Electrification at around US$12.2b. The stock is very large, with a market value of about US$271.1b.
GE Vernova provides exposure to the build out of AI power infrastructure and grid upgrades, supported by a large installed base of gas turbines and a growing Electrification business tied to data center demand. Earnings and margins have improved, supported by high ROE and a large backlog linked to power and grid projects. At the same time, the Wind segment and heavy external borrowing contribute to ongoing risk. The company also reports a sizable AI-related order book and has issued recent guidance upgrades, which highlight potential advantages that are not fully captured in the headline numbers.
GE Vernova’s AI driven power and grid story appears to be gaining real momentum, yet the mix of backlog strength and risk in the Wind segment is not straightforward in the analyst forecasts for GE Vernova
Seeking Fresh Alternatives Beyond Nuclear?
New ideas get crowded fast. The stocks that look quiet today can show breakout momentum once the crowd catches on. Check these under the radar themes while it matters and get in early.
- Spot sturdier income streams by reviewing the 9 dividend fortresses that aim to keep cash returns flying while prices swing around them.
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- Pounce on quality at a discount with the curated 50 high quality undervalued stocks before these setups are caught by every momentum screen.
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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