2 Nuclear Energy Stocks to Buy Hand Over Fist in August

Nuclear energy is experiencing a resurgence, as more entities turn to the power source to address growing energy demands while meeting carbon-reduction goals. At the UN Climate Change Conference (COP28), numerous countries, including the United States, France, Japan, and the United Kingdom, pledged to triple global nuclear energy capacity by 2050.

What makes nuclear particularly compelling is its unmatched capacity factor. According to the U.S. Department of Energy (DOE), nuclear plants operate at a capacity factor of around 92%, 1.5 times higher than natural gas and four times that of solar.

Major technology companies are increasingly turning to nuclear power. The DOE has implemented reforms to streamline permitting, speed up testing, and accelerate the commercial deployment of next-generation nuclear technologies.

With such powerful tailwinds over the coming decades, here are two nuclear energy stocks investors can buy in August.

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This uranium miner has cost advantages and upside from the nuclear infrastructure boom

Located in the Athabasca Basin in Canada, Cameco (NYSE: CCJ) owns and operates some of the highest-grade uranium mines in the world. With a controlling stake in McArthur River and Cigar Lake, the company owns mines with high-grade ore deposits. This gives it a cost advantage thanks to the low life-of-mine cash operating costs of $21.72 per pound at McArthur River and $23.94 per pound at Cigar Lake, enabling it to produce more uranium with a smaller environmental footprint.

One thing that makes Cameco appealing is that most of its operations are based in North America, giving it a geographic advantage as a major uranium supplier for Canada and the United States as countries shift away from Russian sources. Additionally, it is insulated from the political and regulatory uncertainties that plague other uranium-producing regions such as Kazakhstan, Uzbekistan, and Niger.

The company also has a 49% ownership stake in Westinghouse Electric Company, with Brookfield Renewable Partners owning the other 51%. This gives Cameco exposure not just to uranium and conversion, but also to the build-out of nuclear reactors. That's because Westinghouse's technology is utilized in half of the world's operating nuclear reactors. In addition, the U.S. DOE conditionally committed $17.5 billion in loans to finance up to 10 Westinghouse AP1000 nuclear reactors.

On July 31, Cameco and Brookfield Renewable Partners announced that Westinghouse Electric had confidentially submitted a draft registration statement on Form S-1 to the U.S. Securities and Exchange Commission for a proposed initial public offering (IPO). Because Cameco took on debt and equity to finance the deal, the IPO will give it a chance to raise capital, pay down debt, and provide a public valuation that could reflect strong demand for nuclear energy infrastructure.

Cameco has assets across the nuclear value chain and has locked in commitments to deliver an average of 28 million pounds of uranium annually through 2030, giving it stellar revenue visibility. For long-term investors seeking exposure to the broader tailwinds that should lift the nuclear industry, Cameco, down 31% from its 52-week high, is an excellent stock to scoop up in August.

This leading nuclear power provider is positioned to benefit from rising electricity demand

While Cameco operates across the nuclear value chain, Constellation Energy (NASDAQ: CEG) is the largest nuclear power operator in the United States. Operating as a merchant power company, the utility provider controls 22 gigawatts (GW) of nuclear capacity across 14 generating stations and supplies approximately 10% of the country's clean, carbon-free electricity.

Not only does Constellation own the largest nuclear capacity, it also operates at best-in-class efficiency, with an average nuclear capacity factor of 94.7% last year. This efficiency advantage means higher revenue per reactor and ensures consistent power delivery to the grid during peak summer and winter demand, when electricity prices spike.

This nuclear footprint has made Constellation a go-to for major technology companies. In recent years, Microsoft, Meta Platforms, and Dallas-based data center operator CyrusOne have signed long-term power purchase agreements (PPAs) with Constellation. On June 23, Constellation also signed a PPA with Walmart, one of the first PPAs signed by a major U.S. retailer.

The company is taking steps to increase its capacity from within and is pursuing nuclear upgrades to existing facilities to squeeze additional power capacity from its existing fleet. It aims to add roughly 1.5 GW of clean capacity by 2035 through nuclear restarts -- such as the 835-megawatt Crane Clean Energy Center (formerly Three Mile Island Unit 1). The company also recently invested in Blue Energy, marking its first investment in a U.S. developer advancing small modular reactors (SMRs).

Constellation Energy stock has declined 35% from its 52-week high, and is priced around 22.7 times its projected 2026 earnings. Analysts project continued strong growth, with earnings per share expected to grow 13% in 2027 and nearly 29% in 2028, reflecting robust energy demand. For investors seeking nuclear energy exposure through a top utility provider, Constellation Energy is another excellent stock to scoop up in August.

Courtney Carlsen has positions in Cameco, Constellation Energy, Meta Platforms, and Microsoft. The Motley Fool has positions in and recommends Cameco, Constellation Energy, Meta Platforms, Microsoft, and Walmart. The Motley Fool recommends Brookfield Renewable. The Motley Fool has a disclosure policy.