Energy Fuels (UUUU -19.19%) stock collapsed Tuesday, falling 17.4% through 11:45 a.m. ET on no obvious bad news. To the contrary, the latest news for uranium stocks in general (and presumably for Energy Fuels in particular) looks rather good.
According to the energy experts at OilPrice.com, “Uranium prices and nuclear equities are surging as tight supply, underbuilt production pipelines, and policy-driven nuclear revival create a structural supply deficit.”
So what’s ailing Energy Fuels stock today?
Image source: Getty Images.
Uranium prices still strong
The most obvious likely culprit for a decline in stock price at a company that mines uranium would be a decline in the price of uranium. But in fact, according to data from TradingEconomics, uranium prices are doing just fine.
True, after approaching a recent high near $80 per pound back in June, uranium prices “corrected” sharply lower in early July. But the price of uranium has slowly been moving back up ever since and recently passed $73 a pound.
Regardless, shares of not just Energy Fuels but also of rivals Cameco (CCJ -4.19%) and Denison Mines (DNN -6.08%) are down today — though the others aren’t down as much as Energy Fuels stock is.
Is Energy Fuels stock a buy?
Also noteworthy is that Denison in particular received price target hikes from multiple investment banks yesterday. This is curious because, while both Denison and Energy Fuels stocks are currently unprofitable, analysts polled by S&P Global Market Intelligence think Energy Fuels stock will turn profitable next year, but Denison isn’t expected to earn a profit again until 2029.
Call me a traditionalist for preferring profitable stocks over unprofitable stocks, but that kind of makes me think today’s unexplained sell-off could make this a good time to buy some Energy Fuels stock.
