The Best Nuclear Energy Stocks To Buy in February 2025

Key takeaways

As the world moves toward a cleaner energy future, nuclear power is gaining recognition for its ability to provide reliable, carbon-free electricity, making it a vital part of the energy transition.

With increasing global investment in nuclear reactors, particularly in Asia and Europe, demand for uranium is expected to grow significantly, benefiting producers like Cameco and Denison Mines.

Companies in the nuclear sector, such as TC Energy and Constellation Energy, offer a mix of stable cash flows from regulated or contracted operations, alongside growth opportunities from technological advancements and expanding nuclear adoption.

3 stocks I like better than the ones on this list.

The growth of nuclear energy will be a massive story over the next few decades.

Let’s take a closer look at 5 nuclear energy names, stocks that can help any Canadian investor get exposure to the nuclear energy sector.

Diversified energy infrastructure giant

TC Energy (TSE:TRP)

TC Energy owns and operates one of the largest energy infrastructure networks in North America. While its primary focus has historically been natural gas pipelines and liquids transportation, the company is actively investing in nuclear energy projects. Its ownership stake in the Bruce Power nuclear facility, one of the largest nuclear power plants in the world, makes it a unique player in the nuclear energy space.

P/E: 13.2

5 Yr Revenue Growth: 2.3%

5 Yr Earnings Growth: -7.6%

5 Yr Dividend Growth: 5.3%

Yield: 5.7%

  • Owns a 48% stake in Bruce Power, one of the largest private-sector nuclear facilities globally.
  • Strong cash flow from its diversified energy assets, providing stability.
  • Committed to decarbonization initiatives, aligning with energy transition trends.
  • Defensive business model, with most revenue derived from long-term, regulated contracts.
  • Consistent dividend growth, with a track record of over two decades.
  • Increasing focus on renewable and nuclear energy for long-term sustainability.
  • Bruce Power Performance: Monitor operational and refurbishment updates at Bruce Power to assess long-term profitability.
  • Energy Transition Efforts: Track how TC Energy reallocates capital toward low-carbon and nuclear projects.
  • Pipeline Regulatory Challenges: Continued regulatory scrutiny on its pipeline business could influence nuclear investments.
  • Dividend Growth Sustainability: Ensure its financial health supports dividend increases despite capital-intensive projects.
  • Refurbishment Costs: High refurbishment costs at Bruce Power could strain financial resources.
  • Pipeline Dependency: Its earnings still rely heavily on pipeline operations, which face regulatory headwinds.
  • Interest Rate Environment: Rising rates could challenge its ability to finance growth.
  • Market Sentiment: Negative sentiment toward oil and gas infrastructure could weigh on its valuation.

U.S. utility with nuclear operations

Dominion Energy (NYSE:D)

Dominion Energy is a major U.S.-based utility with operations spanning electricity and natural gas distribution. It has significant investments in nuclear power generation, including ownership of four nuclear plants that provide clean, reliable baseload power to millions of customers. The company also has a strong focus on renewable energy development as part of its long-term decarbonization goals.

P/E: 19.4

5 Yr Revenue Growth: 5.1%

5 Yr Earnings Growth: -9.3%

5 Yr Dividend Growth: -4.4%

Yield: 4.8%

  • Owns and operates four nuclear facilities, contributing to its clean energy generation.
  • Expanding its renewable energy portfolio to complement its nuclear operations.
  • Regulated utility business ensures stable, predictable cash flows.
  • Aggressive emissions reduction targets make it a key player in the energy transition.
  • Long-term infrastructure investments supported by favorable regulatory frameworks.
  • Positioned to benefit from increased demand for grid reliability and baseload power.
  • Nuclear Plant Performance: Reliability and efficiency of its nuclear fleet are essential for sustained earnings.
  • Regulatory Policies: Watch for supportive policies promoting nuclear energy and grid modernization.
  • Renewable Energy Expansion: How Dominion balances investments in renewables alongside nuclear will shape its growth.
  • Decarbonization Progress: Its ability to meet aggressive carbon-reduction targets will drive investor sentiment.
  • Regulatory Uncertainty: Changes in state or federal policies could impact nuclear operations or rates.
  • Nuclear Plant Costs: Unexpected maintenance or safety costs could hit earnings.
  • Debt Levels: High debt may limit flexibility to fund future investments.
  • Competition from Renewables: Rapid cost declines in solar and wind could challenge nuclear’s role.

Uranium exploration and development company

Denison Mines (TSE:DML)

Denison Mines is a Canadian uranium exploration and development company focused on advancing its flagship Wheeler River Project in the Athabasca Basin, one of the world’s most productive uranium regions. The company is well-positioned to benefit from rising uranium demand driven by growing global interest in nuclear energy as a clean power source.

P/E:

5 Yr Revenue Growth: -34.6%

5 Yr Earnings Growth:

5 Yr Dividend Growth:

Yield:

  • Advanced-stage Wheeler River Project has high-grade uranium reserves.
  • Positioned in the Athabasca Basin, a region known for high-quality uranium.
  • Benefiting from rising uranium prices due to increasing global nuclear adoption.
  • Minimal debt provides financial flexibility to advance its projects.
  • Strong environmental and technical focus, with low-cost ISR mining methods planned.
  • Strategic partnerships with Cameco and Orano for industry support.
  • Uranium Prices: Rising prices are critical for project profitability and future funding.
  • Wheeler River Progress: Permitting and development milestones will drive investor confidence.
  • Global Nuclear Expansion: Countries investing in nuclear energy will fuel long-term uranium demand.
  • Athabasca Basin Developments: Regional discoveries or investments could boost its valuation.
  • Project Delays: Regulatory or environmental hurdles could delay Wheeler River development.
  • Uranium Price Volatility: Sharp declines in prices could challenge profitability.
  • Capital Requirements: Significant funding may be needed to advance projects to production.
  • Exploration Risks: As an early-stage developer, it faces higher operational risks.

Leading U.S. nuclear energy producer

Constellation Energy (NASDAQ:CEG)

Constellation Energy operates the largest fleet of nuclear power plants in the U.S., providing clean, carbon-free electricity to millions of homes and businesses. It was spun off from Exelon in 2022 to focus exclusively on nuclear and renewable energy. The company plays a crucial role in providing reliable baseload power and reducing greenhouse gas emissions.

P/E: 34.9

5 Yr Revenue Growth: 4%

5 Yr Earnings Growth: 34.6%

5 Yr Dividend Growth:

Yield: 0.4%

  • Operates the largest nuclear fleet in the U.S., offering unmatched scale.
  • Revenue stability from long-term power purchase agreements (PPAs).Positioned as a leader in the clean energy transition due to nuclear’s low-carbon profile.
  • Benefiting from U.S. federal support for nuclear energy development.
  • Investments in small modular reactors (SMRs) and advanced technologies for future growth.
  • Attractive financials, with solid earnings and cash flow generation.
  • Federal Incentives: Policies such as production tax credits could significantly boost profitability.
  • Nuclear Plant Operations: Operational performance and safety records will maintain investor confidence.
  • SMR Developments: Progress in deploying advanced nuclear technologies could drive long-term growth.
  • Energy Demand Growth: Rising electricity demand will reinforce the need for nuclear baseload power.
  • Regulatory Changes: Shifts in federal support or safety regulations could impact operations.
  • Aging Nuclear Fleet: Costs associated with maintaining or upgrading older plants could increase.
  • Market Competition: Renewables could pressure nuclear energy’s role in the energy mix.
  • Public Sentiment: Negative perceptions of nuclear energy could limit growth opportunities.

Global leader in uranium mining

Cameco (TSE:CCO)

Cameco is one of the world’s largest uranium producers, supplying fuel for nuclear power plants globally. The company operates major mines in Canada and Kazakhstan and benefits from long-term supply agreements with utility companies. Cameco is also actively involved in the nuclear fuel cycle, including refining and conversion, making it a critical part of the nuclear energy ecosystem.

P/E: 287.2

5 Yr Revenue Growth: 4.3%

5 Yr Earnings Growth: 14.6%

5 Yr Dividend Growth: 8.4%

Yield: 0.2%

  • Operates high-grade uranium mines in Canada’s Athabasca Basin.
  • Benefiting from rising uranium prices as demand for nuclear energy grows.
  • Long-term contracts provide stable revenue amid price volatility.
  • Partnered with Brookfield to acquire Westinghouse, diversifying into nuclear services.
  • Strong balance sheet enables strategic investments and expansions.
  • Positioned to capitalize on global nuclear growth, especially in Asia.
  • Uranium Price Trends: Sustained high prices are key for profitability and expansion.
  • Westinghouse Acquisition: Monitor the integration and financial impact of this major deal.
  • Global Nuclear Demand: Increasing reactor builds in Asia and Europe will boost long-term sales.
  • Operational Efficiency: Track production rates and costs at flagship mines like Cigar Lake.
  • Production Risks: Operational disruptions at key mines could hurt earnings.
  • Uranium Price Declines: Lower prices could challenge financial performance.
  • Regulatory Challenges: Mining regulations or geopolitical tensions could impact operations.
  • Concentration Risk: Heavy reliance on a few key assets exposes the company to disruptions.

The hot debate on nuclear energy

The world is moving away from fossil fuels in a significant way, but there are a few problems with mothballing power plants that burn coal or natural gas.

Greener versions of power — like wind turbines or solar projects — aren’t nearly as environmentally friendly as first advertised, thanks to current manufacturing practices.

Besides, even after a decade of serious investment into renewables, wind and solar power make up just 10.7% of global power generation.

Nuclear energy solves many of these problems. Nuclear plants are long-life assets that can last decades longer than solar or wind farms. Fuel is abundant and is easily transported, thanks to its relatively close proximity to uranium production.

Two significant risks — meltdown and nuclear waste — have significantly improved over time, especially after Fukushima in 2011. It’s still not foolproof, but ask the thousands of folks who live within spitting distance of nuclear plants in Ontario, and they’d agree they feel pretty safe.

Many investors bullish on nuclear power bet on Canadian stocks like uranium miners, convinced that increased adoption of nuclear power will send its primary fuel higher in price.

And if you don’t want the risk of an individual miner, there’s always a uranium ETF. But that isn’t the only way to access this exciting industry, although some have the disadvantage of not being pure-play nuclear stocks.

Much like the growing population is increasing the popularity of many top fertilizer stocks here in Canada, the push to greener forms of energy is increasing the popularity of some nuclear energy options.