Nuclear Energy Stocks to Consider as Demand for Clean Power Grows
Nuclear energy is emerging as a key solution to the world’s growing electricity demand and the transition to cleaner power sources. Unlike solar and wind, which depend on weather conditions, nuclear plants operate around the clock, ensuring an uninterrupted energy supply.
With this increasing importance, nuclear energy-related stocks, such as BWX Technologies BWXT, GE Vernova Inc. GEV and Constellation Energy Corporation CEG, are becoming attractive investment options. Unlike other clean energy sources that face intermittency issues, nuclear plants provide consistent output, even during peak demand periods.
The demand for clean electricity is rising due to industrial growth, urbanization, increasing temperatures leading to higher use of air conditioners, development of large artificial intelligence-based data centers, and increasing usage of electric vehicles. Nuclear plants require much less space to produce the same volume of electricity compared to other clean sources. All conventional energy sources produce waste while generating electricity. Nuclear energy is the only industry that regulates and safely stores its waste.
Per the International Energy Agency (IEA) finding, with government support and the Net Zero Emissions by 2050 Scenario, the investment in nuclear energy will exceed $150 billion annually by 2030 from the current levels of $65 billion per year. The installed nuclear capacity can rise above 1,000 GW by 2050. Per IEA, large reactors are going to contribute toward the majority of the production volumes and small modular reactors (SMRs) are also poised for rapid growth.
Electricity is produced from nuclear power plants through nuclear fission. Nuclear fuel, primarily uranium, undergoes fission, a process where atoms split, releasing a tremendous amount of heat energy. A continuous supply of uranium is quite essential for the production of electricity from nuclear power plants. Companies like NexGen Energy Ltd. NXE and BHP Group Limited BHP produce large volumes of uranium needed for power plants.
Nuclear Energy stocks have huge potential in the energy space and can offer significant growth opportunities for investors. Our Nuclear Energy Screen makes it easier for investors to locate high-potential stocks at any given time. Apart from the three stocks mentioned above, investors can also explore stocks like Duke Energy Corporation DUK and Entergy Corporation ETR for further growth in the nuclear energy space.
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BWXT Technologies, through its operating segment BWXT Nuclear Operations Group, Inc., provides a complete range of nuclear components and services, including the manufacturing of nuclear reactor components for U.S. Navy submarines and aircraft carriers and other nuclear and non-nuclear R&D and component production. The company also contributes to the effectiveness of nuclear energy in powering communities without producing carbon emissions.
In January 2025, BWXT announced a $525-million agreement to acquire Kinectrics, strengthening its service offerings in the nuclear power and medical markets. This acquisition aims to enhance BWXT’s portfolio by offering comprehensive end-to-end lifecycle solutions for both small modular reactors and traditional large-scale nuclear reactors.
This Zacks Rank #2 (Buy) company has been supporting the U.S. Navy’s mission for more than 70 years. Last month, the company received U.S. Naval Nuclear Propulsion Program contracts totaling nearly $2.1 billion for the manufacture of reactor components.
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GE Vernova’s nuclear business, GE Hitachi Nuclear Energy (GEH), is a joint venture between GE Vernova and Hitachi. GEH is focused on developing and deploying nuclear technologies, including SMRs like the BWRX-300. GEH has over 60 years of experience in designing, deploying, and servicing nuclear reactors, with 67 reactors licensed in 10 countries.
Setting up a large nuclear reactor takes time and money, while GEH’s BWRX-300 is an innovative and simplified configuration, resulting in less concrete and steel needed for construction. The BWRX-300 can be powered by commercially available fuel and is a cost-competitive solution that can be deployed for electricity generation and industrial applications, including hydrogen production, desalination, and district heating.
This Zacks Rank #1 stock offers a suite of digital power plant solutions as part of its standard plant offering. This technology helps enable a less expensive standard nuclear plant design as well as safer and more reliable nuclear power plant operation and maintenance.
Constellation Energy is the largest nuclear power plant operator in the United States, producing about 10% of the nation’s total clean energy. With a fleet of more than 20 nuclear reactors spread across the Midwest, Mid-Atlantic and the Northeast, the company plays a crucial role in providing stable, carbon-free electricity. Its extensive nuclear capacity makes it a key player in meeting rising energy demands, particularly for data centers and other high-consumption industries. As the largest operator of merchant nuclear plants, Constellation’s geographic reach and operational scale give it a competitive edge that is difficult to replicate.
Beyond power generation, Constellation Energy has taken proactive steps to secure long-term access to nuclear fuel. The company has established multiple uranium supply contracts extending into the 2030s, ensuring continued fuel availability amid geopolitical uncertainties. Additionally, CEG is actively retrofitting its existing nuclear plants, allowing them to operate efficiently for decades to come. With a fleetwide capacity factor exceeding 94% — significantly above the industry average — the company has demonstrated consistent reliability. As demand for clean energy accelerates, Constellation Energy’s ability to provide uninterrupted, zero-carbon electricity further strengthens its position in the nuclear sector.
Looking ahead, Constellation Energy is investing in expanding its nuclear capacity to meet the growing energy needs. This Zacks Rank #3 (Hold) company plans to upgrade its existing plants, potentially adding up to one gigawatt of new clean energy capacity over the next decade. Additionally, it is exploring next-generation nuclear technologies, which could enhance efficiency and sustainability.
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Entergy Corporation (ETR) : Free Stock Analysis Report
Constellation Energy Corporation (CEG) : Free Stock Analysis Report
Duke Energy Corporation (DUK) : Free Stock Analysis Report
BHP Group Limited Sponsored ADR (BHP) : Free Stock Analysis Report
BWX Technologies, Inc. (BWXT) : Free Stock Analysis Report
NexGen Energy (NXE) : Free Stock Analysis Report
GE Vernova Inc. (GEV) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).