Uranium Energy's stockj has soared over the past few years.
It could head even higher as the nuclear energy market heats up.
Uranium Energy's (NYSEMKT: UEC) stock has rallied more than 400% over the past five years. That rally was driven by a resurgent interest in nuclear energy among governments, utilities, and AI-driven tech companies, but could its stock head even higher over the next five years?
Uranium Energy is a Texas-based provider of In-Situ Recovery (ISR) solutions that pump an oxygen-enriched solution into the earth to dissolve and recover uranium. That approach is a cheaper and more environmentally friendly alternative to underground and open-pit mining.
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It's expanded rapidly over the years and operates facilities in the U.S., Canada, and Paraguay. As a pure-play uranium extraction and resource development company, Uranium Energy's growth is tightly tethered to uranium prices. Uranium's spot price reached $86.38 per pound at the end of July, and Citi analysts expect it to rise to $100-$125 per pound this year.
From 2025 to 2028, analysts expect Uranium Energy's revenue to grow at a 57% CAGR. They also expect its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to turn positive in 2027 and more than double in 2028.
If Uranium Energy matches those estimates, grows its adjusted EBITDA at a 25% CAGR over the following three years, and trades at 25 times its current-year adjusted EBITDA in 2031, its stock could nearly double over the next five years. It isn't cheap at 60 times next year's adjusted EBITDA today, but it could have plenty of upside potential as the nuclear market expands.
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Citigroup is an advertising partner of Motley Fool Money. Leo Sun 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.