3 Nuclear Energy Stocks Linked To Uranium Supply And Reactor Buildout

Nuclear energy stocks sit at the crossroads of energy security, decarbonisation and long term infrastructure investment. With inflation paths, rate expectations and energy prices all under close watch, many investors are looking for assets tied to essential power supply that can support reliable baseload generation. This Nuclear Energy Stocks screener filters companies across the uranium supply chain and reactor ecosystem so you do not have to sift through the entire market yourself. In this article you will see 3 stocks from the screener that may help you decide whether this theme deserves a place on your watchlist.

WSP Global (TSX:WSP)

Overview: WSP Global is a Montreal based professional services firm that helps governments and companies plan, design and manage large infrastructure and environmental projects, from rail and highways to water systems, buildings and energy assets including lower carbon and nuclear related work.

Operations: WSP Global generates most of its revenue in the Americas at about CA$8.4b, followed by EMEIA at about CA$5.3b, Canada at about CA$2.8b and APAC at about CA$2.0b.

Market Cap: CA$22.5b

WSP Global sits at the intersection of infrastructure renewal, decarbonisation and digitalisation, with a CA$16.3b backlog and growing exposure to higher margin advisory and environmental work that supports earnings growth even while revenue forecasts are modest. Earnings grew 38.1% over the past year and are forecast to grow at about 20.5% per year, yet the stock trades on a lower P/E than many construction peers and below one fair value estimate, which some investors may view as appealing. The trade off is meaningful leverage, reliance on public spending and ongoing acquisition integration risk. If you are looking for a way to get exposure to nuclear related and grid projects via an asset light consulting model, WSP Global deserves a closer look.

WSP Global’s 38.1% earnings growth and rising exposure to higher margin advisory work suggest that forecasts may still be missing part of the story. See how professional expectations stack up in the analyst forecasts for WSP Global

Bird Construction (TSX:BDT)

Overview: Bird Construction is a Canadian construction company that builds and maintains complex industrial facilities, civil infrastructure and institutional buildings, including projects in energy, resources, data centres and nuclear related work, while also providing ongoing maintenance and electrical and mechanical services.

Operations: Bird Construction generates all of its CA$3.5b in revenue from the general contracting sector of the construction industry in Canada.

Market Cap: CA$3.6b

Bird Construction stands out in the nuclear and broader infrastructure theme because it combines a record backlog in green and specialized projects, including a multi year nuclear sector contract and AI data centre buildout with Bell Canada, with growing recurring revenue from maintenance and facilities management. The company has a record backlog in higher margin work, even though current net margins sit at just 1.4% and earnings declined over the past year. The company’s renewed debt structure and larger credit facility support acquisitions and capacity, but reliance on delayed capital projects and higher fixed costs mean project pushouts could quickly pressure margins and cash generation.

Bird Construction’s record backlog in green, nuclear and data centre projects could be masking a very different earnings path from what recent results suggest. Get the full story in the analysis report for Bird Construction

Denison Mines (TSX:DML)

Overview: Denison Mines is a Toronto based uranium company that acquires, explores and develops uranium bearing properties in Canada, with a 95% interest in its flagship Wheeler River project in the high grade Athabasca Basin in northern Saskatchewan.

Operations: Denison Mines currently generates about CA$4.6m in revenue, primarily from its Mining segment.

Market Cap: CA$3.7b

Denison Mines gives you direct exposure to the uranium that may be required if nuclear power continues to play a bigger role in low carbon baseload electricity, including traditional reactors and potential new projects such as small modular reactors. The company is still in a development and ramp up phase, with minimal revenue, recently wider losses and a high P/B multiple. Progress therefore depends heavily on successfully bringing projects like Phoenix at Wheeler River into production. Analysts currently model rapid earnings growth and see a sizeable gap between their targets and the prevailing share price, which makes the timing and execution of Denison’s build out an important consideration for long term investors who are interested in the nuclear theme.

Denison Mines sits at the heart of the uranium story, but the development timeline, Phoenix ramp up and valuation expectations are not fully obvious at a glance. Get the context behind the analyst forecasts for Denison Mines

The three nuclear energy stocks in this article are only a starting point. The full Nuclear Energy Stocks screener uncovers 55 more companies that carry equally compelling narratives across the uranium fuel cycle and reactor build out theme in the Nuclear Energy Stocks screener. Identify and analyze the specific catalysts that matter to you, from uranium supply and enrichment to reactor construction and long term offtake agreements, so Simply Wall St can help you focus on the highest conviction nuclear energy ideas.

Take Control of Your Investment Journey

If Bird Construction or any of these companies have caught your attention, register for FREE with Simply Wall St and add your companies to a Watchlist to monitor the share price against the fair value and track any new developments as they happen. Once you've made your move, manage your holdings with our Portfolio Command Center that filters out the noise to deliver only the most critical, actionable updates. Throughout your journey, our Community allows you to filter the best ideas from thousands of investor perspectives. By uncovering hidden catalysts and risks early, you'll accelerate your decision-making and stay one step ahead of the market.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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