Keep an eye on uranium stocks.
Over the last few days, Congress passed the Russian uranium import ban, which now unlocks about $2.7 billion to expand U.S. nuclear fuel production.
“The broader package also includes a ban on federal licenses for reactor fuel imported from or produced by entities controlled by Russia while adding China and China-controlled entities to the import blacklist,” according to UtilityDive.com.
In addition, according to MarketWatch.com, “A ban on U.S. imports of Russian uranium is set to shake up the market for nuclear power, and lift prices back above $100 a pound for the nuclear fuel which has been tight on supplies.”
One of the top stocks that could benefit is Cameco (CCJ), says Goldman Sachs. Better, Goldman just raised its CCJ price target to $56 a share, noting that, “We continue to see CCJ as a key means of gaining exposure to the entire value chain of uranium,” as highlighted by CNBC.
We also have to consider that governments from all over the world are pushing for uranium. Remember, about 22 countries, including the U.S., Canada, the UK, and France just pledged to triple their nuclear capacity by 2050 at the 28th Annual UN Climate Change Conference.
Plus, as highlighted by The Wall Street Journal, “The market is only getting tighter, according to Jonathan Hinze, president of UxC. Commercial reserves of uranium held by U.S. utilities have been declining since 2016, according to data from the U.S. Energy Information Administration. In the European Union, they have been declining steadily since 2013, according to the Euratom Supply Agency.”
All of that could send uranium stocks, like Cameco to higher highs.