Why Centrus Energy Stock Sank 13.5% in May

While the initial reaction to Centrus Energy's (NYSE: LEU) early May announcement of its first-quarter 2026 financial results was positive, the market's enthusiasm didn't last. Shares of the nuclear energy stock quickly tumbled lower and subsequently failed to recover for the remainder of the month.

According to data from S&P Global Market Intelligence, Centrus Energy shares dropped 13.5% in May.

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The glow of an update to 2026 guidance quickly faded

Initially, investors found cause to celebrate with the announcement of Centrus's Q1 2026 financial report. The company reported earnings on May 5 after the market closed, and shares closed more than 12% higher the following day. For one, Centrus upwardly revised its 2026 revenue guidance to $450 million to $500 million from $425 million to $475 million.

In addition, the company reported growth in its low-enriched uranium (LEU) backlog. At the end of Q1 2026, Centrus had about $3.1 billion in LEU backlog, up from $2.8 billion at the same time last year.

But the blights in the company's financial results soon became apparent.

While Centrus achieved a 4.9% year-over-year increase in revenue, the $76.7 million reported on the top line fell short of the $78.3 million analysts anticipated. At the bottom of the income statement, investors found additional cause for concern. Centrus reported diluted earnings per share (EPS) of $0.45 -- far slimmer than the diluted EPS of $1.60 that it reported during the same period last year.

Investors found further cause to click the sell button shortly after the company reported financial results. On May 8, Citigroup slashed its price target on Centrus Energy stock to $218 from $224, maintaining a neutral rating.

After its recent plunge, is Centrus Energy stock too radioactive to hold?

While the decline in Centrus Energy stock last month may be disconcerting (and the subsequent 7.8% slide in June, as of this writing), investors seeking exposure to the current nuclear energy renaissance would be wise to consider the stock -- especially those with lower risk tolerances.

As a company that consistently generates profits, Centrus Energy represents a more conservative option than small modular reactor developers that aren't generating significant revenues, let alone profits.

Lest those with even lower risk thresholds feel they have no opportunities to gain exposure to the current boom in nuclear energy, there are nuclear energy exchange-traded funds (ETFs) they can consider.

Citigroup is an advertising partner of Motley Fool Money. Scott Levine 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.