This Nuclear Stock Could Be Your Ticket to Millionaire Status -- and It Didn't Even Need to Build a Reactor First

Racing to load up on shares of advanced nuclear reactor makers like NuScale Power and Oklo, growth investors have recognized the robust opportunity that these stocks afford as the nuclear energy renaissance continues to roll along.

But many investors have passed on shares of these companies, recognizing significant risks, from uncertainty about whether they will receive the requisite regulatory approvals to the lack of a guarantee that they will generate profits. Fortunately, there's one under-the-radar nuclear stock that provides a robust wealth-building opportunity -- and it doesn't have to build a single nuclear reactor.

Image source: Getty Images.

Centrus Energy's $4.5 billion backlog may just be the beginning

Fueling up an advanced nuclear reactor isn't as simple as gassing up your car during your morning commute. Many small modular reactors (SMRs) require a specialized form of uranium called high-assay low-enriched uranium (HALEU). Of the few companies engaged in the commercial production of HALEU, Centrus Energy (NYSE: LEU) is one of the most notable.

In fact, the company brands itself as the "only HALEU enricher in the Western World with entrenched first-mover advantages" capable of addressing the growing commercial HALEU market, driven by growth in the advanced reactor market. This expertise complements the company's current low-enriched uranium (LEU) operations.

The company's allure is clear. Centrus reported a $4.5 billion backlog of LEU and HALEU sales commitments in an August investor presentation. As SMR makers secure the necessary licenses and commence commercial operations, Centrus should see continued demand for its enriched uranium products.

Centrus can put you on the path to millionaire status

It's impossible to say for sure whether Centrus stock will flourish, but the company's dominant competitive advantage is compelling. Since the nuclear energy stock has a $2.4 billion market cap, it's reasonable to think it could grow tenfold to a market cap north of $20 billion. Uranium powerhouse Cameco, after all, has a $35 billion market cap. So it's possible a $10,000 Centrus investment could mint a millionaire.

Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Cameco. The Motley Fool has a disclosure policy.