5 Best Nuclear Energy Stocks in Canada for May 2024

At a time when the world continues to discuss moving away from fossil fuels, nuclear energy is a renewable resource that is often overlooked. Nuclear energy often gets a bad reputation due to rare events like meltdowns and the creation of nuclear waste. 

But nuclear energy itself is clean, easy to transport, and abundant. This is especially true in Canada, where we have a large supply of uranium, the resource needed to power plants. With just 19 reactors in Canada producing only 15% of the country’s electricity, the industry could see some significant growth in the coming years. 

What Are Nuclear Energy Stocks?

Nuclear energy stocks are usually companies that operate in the clean energy sector or are connected to uranium. As of 2024, the selection of Canadian nuclear energy stocks is limited, which is another sign that the industry has some growth ahead of it. 

The number of companies involved in nuclear energy infrastructure is also limited. This makes uranium stocks the better risk-reward play for the future of nuclear energy in Canada. 

As an emerging market, investing in nuclear energy now could pay off in the future. Here are our choices for the 5 best nuclear energy stocks in Canada for May 2024.

Top Nuclear Energy Stocks to Buy in Canada

1. Cameco Corp 

Ticker Symbol	TSE: CCO
Market Cap	$23.36 billion
52-Week Trading Range	$28.98 to $56.36
Dividend Yield	0.22%
PE Ratio	244.84

Cameco Corp is likely the first stock to come to most people’s minds when discussing nuclear energy. This Saskatchewan-based firm is the world’s largest publicly traded uranium company and is widely considered one of the best uranium companies in the world.

Cameco owns several uranium-producing assets in Canada and Kazhakstan. It is also developing several more sites in Canada and Australia. 

On top of these sites, the company owns the world’s largest commercial uranium refinery and Canada’s only uranium conversion facility.

As per Cameco’s investor deck, there are 57 nuclear reactors under construction worldwide, which should cause a significant demand surge for uranium. There is also a major supply glut of uranium due to economic sanctions against Russia. If there is one name in uranium to buy for the future, it is Cameco. 

2. TC Energy Corp

Ticker Symbol	TSE: TRP
Market Cap	$49.06 billion
52-Week Trading Range	$43.70 to $66.19
Dividend Yield	7.63%
PE Ratio	54.51

TC Energy is a stock that needs no introduction to Canadian investors. It is one of the largest energy and pipeline companies in the country and is a popular stock among dividend investors.

The Calgary-based company is usually associated with oil and natural gas but also has a growing asset allocation to nuclear energy. 

The company owns a 48% stake in a company called Bruce Power, which is a limited partnership between TC Energy, BPC Generation Infrastructure Trust, and a couple of other organizations.

Bruce Power owns 8 nuclear reactors on Lake Huron in Ontario and is a global leader in providing clean electricity to Ontario households and medical isotopes to hospitals around the world. 

3. Denison Mines 

Ticker Symbol	TSE: DML
Market Cap	$1.83 billion
52-Week Trading Range	$1.28 to $2.25
Dividend Yield	N/A
PE Ratio	N/A

Denison is another Saskatchewan-based uranium mining company, although it is not quite as accomplished as Cameco. It has stakes in three different uranium sites, and its flagship site is the Wheeler River Project in the Athabasca Basin. In total, Denison boasts over 285,000 hectares of exploration ground. 

As of September, Denison holds more than 2.5 million lbs of physical uranium with another $8.5 million in Canadian uranium equities.

Just as with Cameco, as the world’s demand for uranium continues to grow, Denison should see a boost in business and offer a nice risk-reward for Canadian investors. 

4. Uranium Energy Corp 

Ticker Symbol	NYSEAMERICAN: UEC
Market Cap	$1.96 billion
52-Week Trading Range	$2.30 to $5.55
Dividend Yield	N/A
PE Ratio	520.00

Uranium Energy Corp is a Texas-based uranium company that was founded in 2003. This company owns uranium mining operations in the Athabasca Basin as well as Arizona, Wyoming, Texas, and Paraguay.

It was also recently selected by the US Strategic Uranium Reserve to supply 300,000 lbs of uranium to revitalize the domestic uranium holdings. 

As of September, Uranium Energy Corp holds over 771,000 lbs of physical uranium and anticipates delivering over 1.8 million lbs through the end of 2025. This company also has strong partnerships with Cameco and Orano in high-uranium-yielding projects in the Athabasca Basin.

For Canadian investors, UEC offers some diversified exposure to an American uranium company. 

5. NuScale Power Corporation

Ticker Symbol	NYSE: SMR
Market Cap	$390 million
52-Week Trading Range	$5.22 to $12.65
Dividend Yield	N/A
PE Ratio	N/A

NuScale Power offers a more speculative investment to the nuclear energy industry. This Portland, Oregon-based company designs and markets small modular reactors or SMRs.

NuScale was first established through a partnership between the University of Oregon and the United States Department of Energy. 

Earlier this year, NuScale’s 50 MWe version of its SMR was officially certified by the US Nuclear Regulatory Commission. It is also slated to build a pair of nuclear reactors in Idaho in 2029 and 2030.

Unlike other nuclear energy and uranium stocks, SMR finds itself currently trading at 52-week lows. 

How to Buy Canadian Nuclear Stocks in 2024

The stocks on our list are available on nearly every Canadian brokerage platform. To save on commission fees, consider discount Canadian brokerages like Questrade or Qtrade.

These brokerages offer lower trading fees than the big banks and full access to US and Canadian stocks and ETFs.

Are Nuclear Energy Stocks a Good Investment?

If you are bullish on clean energy as an eventual replacement for fossil fuels, then you should consider looking into nuclear energy. 

This form of energy only provides about 15% of electricity across Canada. The Canadian government announced in August that it would be investing heavily in developing SMRs and expanding nuclear energy infrastructure across the country. 

Uranium is also an abundant resource in Canada and will be powering the world’s nuclear reactors for decades to come. 

Unfortunately, nuclear energy is still misunderstood and often carries a negative connotation. This is due to recent global events like the Fukushima nuclear disaster in 2011. 

While nuclear energy is a superior form of clean energy, many countries are still opting for safer forms of energy like wind, hydro, and solar. 

Remember that this article is not meant to be investment advice. This is meant to be more of an introduction to investing in clean energy stocks, so you should always continue to do your research that suits your investment strategy. 

Downsides of Investing in Nuclear Energy Stocks

Nuclear energy is still an industry that needs to win over the public. If there are any nuclear disasters, these stocks could tumble lower on the bad news and negative sentiment. 

Investing in this sector is still risky. Despite Canada’s support for the nuclear industry, it is not guaranteed to outperform other forms of clean energy. 

Many of these stocks are already up big in 2024 as the uranium bull market has broken out. The sector could cool off and pull back after rallying over the past few months.

Is There a Nuclear Energy ETF?

Most nuclear energy ETFs are still focused on uranium miners and producers. Some of the better uranium ETFs in Canada include:

• Global X Uranium ETF (NYSEARCA: URA)
• VanEck Uranium and Nuclear Energy ETF (NYSEARCA: NLR)
• Sprott Uranium Miners ETF (NYSEARCA: URNM)
• Horizons Global Uranium Index ETF (TSE: HURA)
• Sprott Physical Uranium Trust (TSE: U-UN)

Conclusion

Nuclear energy has the potential to be the best form of clean energy in the world. It has some negative associations with meltdowns and disasters, but the pros far outweigh the cons.

Canada can potentially be a nuclear energy leader, given its abundance of uranium mines. One thing is clear: we are still very early in the nuclear energy era. This makes it an enticing sector to invest in for the future.