Does Nano Nuclear Energy Inc. (NNE) have what it takes to be a top stock pick for momentum investors? Let's find out.
Nano Nuclear Energy Inc. (NNE) has been upgraded to a Zacks Rank #2 (Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.
This year, NANO Nuclear has a $120 million liquid cash position, $100 million higher than in FY2023, but mostly through capital raises. R&D has increased YoY into a diverse range of nuclear products, with advancing patents and licenses in both the US and Canada. NNE's MMRs are more appropriate for its market niche than any other competitor.
Investors interested in NNE stock should wait for a better entry point, considering the year-over-year deterioration suggested by its earnings estimate.
NANO Nuclear has seen an eye-popping price increase since listing last year and continues to make strong gains in 2025 too. Its USP is micro-reactors, which offer several advantages over more conventional ones and in recognition of these, have received US government support as well. Despite strong investor interest and ample liquidity, NANO Nuclear's case is weak for the short to medium term, going by its high market multiples compared to peers.
Nano Nuclear Energy is a vertically integrated nuclear energy firm, focusing on microreactors and high-assay low-enriched uranium production. NNE's microreactors are portable, easy-to-operate power stations, with their flagship product "Zeus" receiving support from the U.S. Department of Energy. Despite being pre-revenue and potentially unprofitable until 2034, NNE's vertical integration and government partnerships offer significant long-term growth potential.
NANO aims to launch its two microreactors, Zeus and Odin, by 2030-2031, with some earlier revenue expected from nuclear consulting, HALEU fuel transportation, and non-TRISO HALEU fuel production. I believe the 8x price surge since its IPO to $26.6 is purely speculative, making me quite cautious about potential profit-taking waves similar to the June-August pullback. I expect significant cash burn beyond the current $2.54M quarterly rate as the company develops its multiple business lines simultaneously, in addition to its R&D costs.
Is it time to take profits and sell your nuclear power stocks?
The utilities sector, represented by the Utilities Select Sector SPDR ETF NYSE: XLU, has outpaced the market in 2024, rising by 25% year-to-date and surpassing the SPY ETF's nearly 20% return. This outperformance has positioned utilities as a surprise leader, driven by the recent rate cuts, renewed interest in nuclear energy, and the rapid expansion of artificial intelligence (AI) initiatives.
The push by data centers to seek out clean energy sources to power their AI platforms and applications has become mainstream. Data centers are estimated to consume over 9% of all domestic electricity produced by 2030.
NEW YORK, NY / ACCESSWIRE / October 8, 2024 / If you suffered a loss on your NANO Nuclear Energy Inc. (NASDAQ:NNE) investment and want to learn about a potential recovery under the federal securities laws, follow the link below for more information: Click Here or contact Joseph E. Levi, Esq.
NEW YORK, NY / ACCESSWIRE / October 8, 2024 / If you suffered a loss on your NANO Nuclear Energy Inc. (NASDAQ:NNE) investment and want to learn about a potential recovery under the federal securities laws, follow the link below for more information: Click Here or contact Joseph E. Levi, Esq.