This Nuclear Energy Stock Has Plunged 32%. Buy It Now Before It Sets a New All-Time High.

Centrus Energy (NYSE: LEU) has been around for decades but began attracting more investor attention in 2019, when it started contracting with the U.S. Department of Energy to enrich uranium and supply high-assay, low-enriched uranium (HALEU) for next-generation reactors. In 2025, that attention elevated further, along with the nuclear industry more broadly, as HALEU was seen as a way to help meet the growing energy needs of data centers across the country. Centrus' share prices spiked from $54 in April 2025 to an all-time high of $464.25 by October 2025. The nuclear stock was riding high at that time on news that it had contracted with the National Nuclear Security Administration to develop low-enrichment uranium for government use.

But since hitting that all-time high, Centrus' stock is trading down about 63%. The reasons for the drop include a mixed first-quarter earnings report, fluctuating spot uranium prices, and concerns about production once a ban on Russian LEU imports takes effect in 2028.

The big price drop has created a potential buy-the-dip situation for investors willing to think long-term about Centrus. Here are three reasons to like the stock's long-term potential.

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1. Centrus has an effective HALEU monopoly in the U.S.

Centrus is the only U.S.-licensed producer of HALEU. That's a huge moat, especially as demand for advanced reactor fuel is expected to grow at a compound annual growth rate of 10.8% through 2033, according to a report by DataIntelo. Centrus management estimates the HALEU market opportunity could reach $8 billion annually by 2035.

The growth of the HALEU market is driven primarily by the shift toward advanced nuclear technologies, including Small Modular Reactors (SMRs) and Generation IV designs. Unlike traditional reactors, these next-generation plants rely on HALEU's higher enrichment levels to achieve longer operational cycles, better fuel efficiency, and enhanced safety.

As governments and private industries push to decarbonize the power grid and meet net-zero goals by 2050, HALEU has become essential for deploying compact, flexible, and reliable energy systems of the future.

2. Centrus' Q1 was mixed, but it was still a solid quarter

Centrus reported its first-quarter earnings on May 5, with earnings per share (EPS) coming in at $0.45, down from the $1.60 EPS it reported the prior year and missing estimates. However, it posted a non-GAAP adjusted EPS of $1.05, crushing Wall Street analyst consensus estimates of $0.33. GAAP earnings were down due to heavy spending on plant expansion, management said.

Revenue for the quarter rose 4.9% year over year, to $76.7 million. Strong demand and solid contract execution prompted management to revise its full-year revenue guidance upward to $450 million to $500 million, up from a previous forecast of $425 million to $475 million.

Centrus has a $3.9 billion long-term order backlog that extends through 2040, providing clarity on the company's future revenue.

3. Don't bet against the government

Centrus is not just another utility or mining outfit. It holds a vital, strategic position in Western energy infrastructure. Following aggressive Western pushes to completely decouple from Russian enriched uranium (the import ban goes into effect in 2028), the U.S. government has designated the domestic fuel supply a matter of urgent national security.

Centrus operates under a massive financial cushion, anchored by a multi-phase Department of Energy HALEU contract worth up to $900 million. This effectively de-risks its capital-heavy centrifuge manufacturing build-out with federal taxpayer dollars.

Why the disconnect?

The steep year-to-date drop in the stock price largely stems from broader macroeconomic energy shifts, near-term project execution jitters, some investor profit taking, and a highly premium valuation multiple heading into the year. However, the fundamental business performance remains exceptionally strong, making it a prominent good-earnings-down-stock story in the nuclear sector.

The company's huge backlog is growing. On June 19, the company signed an agreement with nuclear power plant builder Oklo to supply enough HALEU to power up to five of Oklo's Aurora powerhouses in Southern Ohio for multiple years, with deliveries to Oklo scheduled to begin in 2029.

James Halley has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.