Cameco vs. Centrus vs. BWX Technologies: Ranking the 3 Nuclear Stocks That Get Paid Before a Reactor Is Built.

Cameco (NYSE: CCJ), Centrus (NYSE: LEU), and BWX Technologies (NYSE: BWXT) are all linchpins of the nuclear energy market. Cameco is one of the world's largest uranium miners; Centrus is a major uranium enricher, and BWX builds crucial nuclear components.

In theory, all three companies should benefit from the nuclear market's recent resurgence -- which was driven by new decarbonization initiatives, safer nuclear technologies, and the expansion of the power-hungry cloud infrastructure and AI markets. But over the past 12 months, Cameco's stock fell 8%, BWX's dipped 7%, and Centrus' plummeted 72%. Let's see why these three nuclear stocks fizzled out -- and which one is the best turnaround play.

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The differences between Cameco, Centrus, and BWX

Cameco, based in Canada, is the world's second-largest uranium miner after Kazakhstan's Kazatomprom (OTC:NATK.Y). It operates mines in Canada, the U.S., and Kazakhstan. It also owns nearly half of Westinghouse Electric, one of the world's top nuclear plant builders, and Global Laser Enrichment (GLE), its uranium enrichment joint venture with Silex (OTC: SILXY).

Cameco still generates most of its revenue from mining. Still, its investments in Westinghouse and GLE could eventually turn it into a "one-stop shop" for mining, converting, and selling enriched uranium. Instead of selling its uranium at spot prices (which would expose it to more volatility), Cameco locks most of its clients into long-term, partly fixed-price contracts. That approach is safer, but it also limits Cameco's exposure to rising uranium prices.

Centrus is one of the few U.S. companies licensed to sell low-enriched uranium (LEU), the most common fuel for commercial nuclear reactors. It's also the only public U.S. company authorized to sell high-assay low-enriched uranium (HALEU) for next-gen reactors.

Centrus once enriched its own uranium, but it shut down its domestic plants over a decade ago when it became cheaper to import and sell overseas LEU. But in recent years, the sanctions against Russia and the U.S. government's push toward energy independence have driven Centrus to restart its LEU plant in Ohio and begin producing HALEU in the United States. That transformation from a middleman to a first-party producer is squeezing its near-term margins.

BWX is the only large-scale producer of specialized nuclear components, fuel systems, and naval reactor systems in North America. It's one of the few companies authorized to work with regulated nuclear materials, handle HALEU and tri-structural isotropic (TRISO) fuel, and develop naval reactor components for the U.S. Navy. It also produces tiny microreactors, which are cooled by gas rather than water and generate approximately 1-5 MWe.

BWX generates most of its revenue from the defense sector, so it's better insulated from the macro headwinds than commercial-oriented nuclear companies. Its scale and diversification also keep it more profitable than smaller next-gen reactor makers.

Which stock is the best turnaround play?

Rising interest rates pose the biggest near-term threat for all three companies, because they could throttle economic growth and compress their valuations. But over the next few years, analysts clearly expect BWX to grow faster than Cameco and Centrus.

Data source: Marketscreener.

Cameco's growth rates are steady, but its conservatively hedged contracts limit its long-term growth potential compared to producers that directly sell their uranium at spot prices. Centrus' earnings will decline through 2028 as it restarts its capital-intensive domestic plants and ramps up HALEU production, but those investments should pay off in the long run.

BWX is better positioned to profit from the nuclear market's near-term growth. It's better diversified, it controls a crucial link of the North American nuclear supply chain, and the growth of its defense business should insulate it from the next recession.

In addition to growing faster over the next few years, BWX's stock also trades at a lower forward multiple than Cameco and Centrus. While that might seem like an apples-to-oranges comparison, BWX is clearly the safer overall play on the ongoing nuclear boom.

Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends BWX Technologies and Cameco. The Motley Fool has a disclosure policy.