UEC - Why UEC Stock Is Set to Outperform Cameco in a Hot Uranium Market
2024-03-31 10:30:00 ET
The uranium market has been red hot, with prices soaring higher for the element that's used to fuel nuclear power plants. This has also led to the strong performance of uranium miners such as Cameco (NYSE: CCJ) and Uranium Energy Corp. (NYSEMKT: UEC) . While both companies are set to benefit from continued increasing uranium prices, Uranium Energy is positioned to benefit more. Here's why.
Pricing for commodities generally comes down to supply and demand, and uranium is no exception. When demand is lower than supply, prices tend to come down, and when demand is higher than supply, prices generally move higher.
The Fukushima nuclear disaster in Japan back in 2011 caused a big backlash against the nuclear power industry that led to many countries either slowing their nuclear power ambitions or shutting them down altogether. This caused spot uranium prices to crash, going from $140 a pound to the $20-$25 a pound range.
For further details see:
Why UEC Stock Is Set to Outperform Cameco in a Hot Uranium Market