Stocks skyrocketed on Wednesday after Trump “authorized a 90-day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%.” Wednesday’s impressive rebound highlighted why long-term investors should remain exposed to stocks in falling markets.
The market gave up some of those gains on Thursday because Wall Street is still waiting for concrete updates on tariff negotiations and clarity on what’s next with China.
Investors are also likely holding off on making their next big moves until the start of Q1 earnings season, which kicks off with JPMorgan on Friday morning.
No one can call a bottom in real time, and there could easily be more selling around the corner. But some widely tracked technical indicators suggest long-term investors might want to start nibbling at stocks.
Image Source: Zacks Investment Research
The bulls started to step up midweek after the Nasdaq fell below its 2021 peaks and edged near its long-term 200-week moving average. The 200-week was one of Charlie Munger’s favorite technical indicators for buying great stocks at a discount.
On top of that, CNN’s Fear and Greed Index, a contrarian stock market indicator, sits at Extreme Fear (9) compared to 4 (on a 0–100 scale) at the start of the week.
Today’s Full Court Finance at Zacks dives into two great nuclear energy stocks that have fallen at least 25% from their highs—BWX Technologies and Cameco—to consider buying amid the market downturn and holding for long-term gains.
The U.S. government has launched various initiatives to support the nuclear energy revival, aiming to triple nuclear capacity by 2050.
Expanding the nuclear-powered economy will demand tens of trillions of dollars and take decades, even though nuclear energy has consistently supplied about 20% of U.S. electricity for over three decades.
Tech giants such as Amazon, Alphabet, and Microsoft all secured multibillion-dollar nuclear power agreements last year as they race to fuel their power-hungry artificial intelligence expansion plans.
Large data centers can consume nearly as much electricity as a midsize city, and generative AI platforms like ChatGPT use at least 10 times the energy of a typical Google search. This AI-driven energy boom is arriving just as the U.S. and major tech companies aim to reduce their reliance on fossil fuels.
The biggest hurdles, from huge capital expenditure requirements to technological innovation challenges, play a critical role in the bull case. Big tech and big government are fully committed to expanding nuclear energy as part of the massive energy infrastructure expansion effort.
The Office of Nuclear Energy, part of the U.S. Department of Energy, posted on X earlier this month that the “U.S. nuclear renaissance starts now.”
BWX Technologies, Inc. (BWXT) is a pure-play nuclear manufacturing and engineering company exposed to multiple growth segments across energy, defense, space exploration, and beyond.
BWXT is expanding its commercial nuclear power segment and gaining ground at the bleeding edge of the field through small modular reactor technology. The Virginia-based firm works directly with next-generation nuclear energy companies, such as GE Vernova, as well as the U.S. Department of Energy and Department of Defense.
BWXT is building out its commercial nuclear equipment manufacturing plant to accommodate the nuclear power boom.
Image Source: Zacks Investment Research
The nuclear tech company is expected to grow its revenue by roughly 12% in 2025 and 2026, marking its best back-to-back percentage gains YoY as a public company.
BWXT is projected to expand its adjusted earnings by 5% in 2025 and 13% in FY26. It has beaten our EPS estimates for eight consecutive quarters, and its upbeat revisions earn it a Zacks Rank #2 (Buy).
BWXT’s strong balance sheet supports its dividend, and eight of the 10 brokerage recommendations tracked by Zacks are rated “Strong Buy.”
The stock has climbed 350% in the past 15 years, significantly outperforming its sector’s 61% gain, including a 100% jump in the trailing five years.
Image Source: Zacks Investment Research
BWX Technologies trades 25% below its November highs. The stock is attempting to retake its 50-day moving average after finding support near its late-February 2024 breakout levels and its 52-week lows.
On the valuation front, the nuclear energy tech firm trades at a 65% discount to its highs and in line with its 10-year median with a 2.5 price/earnings-to-growth (PEG) ratio.
Cameco (CCJ) is a Canadian uranium miner and a leading supplier of uranium refining, conversion, and fuel manufacturing services.
Cameco is the second-largest uranium producer in the world, according to the World Nuclear Association, and one of the few large-scale uranium miners most retail investors can buy.
Cameco boasts two of the highest-grade uranium mines on the planet in Canada. CCJ’s importance to the U.S. and Western countries has grown as the U.S. seeks to reduce its reliance on Russia and the region, which dominates the uranium market.
Image Source: Zacks Investment Research
The U.S. uranium mining industry went nearly dormant until the U.S. government’s recent nuclear energy push. But restarting the U.S. uranium mining industry won’t happen overnight, bolstering Cameco’s bull case.
The company has averaged 25% revenue growth over the past three years, and it is projected to boost its adjusted earnings by 96% in 2025 and 66% in 2026.
CCJ expects to double its dividend between 2023 and 2026. Wall Street loves the stock, with 12 of the 15 brokerage recommendations we track rated “Strong Buy” and three rated “Buy.”
CCJ shares have surged 310% in the past five years, despite a 37% drop from their December highs. Cameco is fighting to hold its ground near its recent lows and its highs from 2006–2011.
Image Source: Zacks Investment Research
CCJ trades at 30X forward earnings, solidly below its five-year median of 35X. Better yet, Cameco trades at a 50% discount to its 10-year median and a 70% discount to the S&P 500, with a 0.5 price/earnings-to-growth (PEG) ratio.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Cameco Corporation (CCJ) : Free Stock Analysis Report
BWX Technologies, Inc. (BWXT) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
