Whatever public perception of nuclear energy may be, Bill Gates has decided it’s a worthy pursuit for his newly formed TerraPower. The former tech billionaire turned philanthropist has been aggressively searching for ways to improve the world in the ways he deems fit.
From investing in farming to vaccine development, Gates has a penchant for trying new things. However, like in other industries, Gates’ foray into energy could create a splash among nuclear energy stocks as it brings investor attention to the industry.
This contrasts with Gates’ usual approach of quietly funding his projects through the Gates Foundation. However, with nuclear energy, shifting public perception is key to revitalizing an industry that has seen criticisms due to accidents like Chernobyl and Three Mile Island.
As such, here are three nuclear energy stocks for investors to consider as the long-term prospects of nuclear energy in the United States improve.
Uranium Energy (UEC)
Thanks to the rising demand for uranium, Uranium Energy (NYSEAMERICAN:UEC) remains in a strong position to grow its stock price over the next 10 years. This comes as Gates and governments alike realize the inevitability of fossil fuel decline and increasing demand for nuclear power.
Furthermore, as countries across Europe rely on nuclear energy for electricity, demand could grow even more rapidly. This stems from the European Union’s new distaste for Russian natural gas, requiring new sources of heat and electricity generation.
Beyond this, interest in nuclear energy also increases as new research, such as thorium reactors and sodium cooling, expands the horizons for cleaner and safer energy generation technologies.
While U.S. policymakers historically struggle with expanding nuclear energy, many have begun considering the long-term potential of nuclear reactors. This, in turn, has led UEC stock on an increase in value of nearly 68% over the last 12 months. While uranium prices continue to rise, UEC offers one of the best nuclear stocks to buy right now.
Brookfield Business Partners (BBU)
Through its ownership of the Westinghouse Electric Company, Brookfield Business Partners (NYSE:BBU) now controls one of the largest nuclear energy providers in the country. This could only get more lucrative if Gates’ project improves public perception of nuclear.
Furthermore, the company also manages and directs the infrastructure of these facilities.
This means BBU is directly responsible for providing fuel to the reactors, maintenance, repair, components and engineering service to two-thirds of the world’s nuclear power plants. Thus, it likely has the widest base of any publicly traded U.S. nuclear company to build from as the industry expands.
Though the last quarter was not pretty for BBU’s financials, with metrics like revenue, profits and EBITDA all in decline, a future boom in nuclear energy could make this discount a worthy time to buy. Ultimately, BBU is more than just nuclear, considering its broad portfolio of energy and utilities under its wings, which also abates long-term risk through multiple avenues for improvement.
BWX Technologies (BWXT)
The premier provider of nuclear technology to the U.S. government, BWX Technologies (NYSE:BWXT) performs both like a defense contractor and a commercial nuclear technology giant. The company has over 60 years of innovation behind its products and has delivered over 400 nuclear reactors to the U.S. Navy throughout its history.
BWX has built 315 steam generators that derive electricity from nuclear fission for various customers and now manages 12 high-consequence sites for the U.S. government.
Now BWXT stock is likely to keep soaring, as it was recently awarded a $30 billion contract for managing the National Nuclear Security Administration’s Pantex Plant. This news was soon followed by BWXT winning phase two of a microreactor evaluation contract from the state of Wyoming.
Bearing in mind Gates’ interest in Wyoming for his TerraPower generator, BWXT could be a critical partner in the future of its success.
On the date of publication, Viktor Zarev did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
