NexGen (NXE) Ends Losing Streak as US Govt Urges Uranium Expansion

We recently published All-Time High Fever: 10 Stocks Soaring and Breaking Records. NexGen Energy Ltd. (NYSE:NXE) is one of the best performers in last week’s trading.

NexGen snapped a two-day losing streak on Monday, jumping 10.62 percent to close at $8.44 apiece as investors welcomed the US government’s backing for the expansion of uranium production in the country.

NexGen Energy Ltd. (NYSE:NXE) rallied alongside its counterparts after Energy Secretary Chris Wright said that the US should look to boost its strategic uranium reserve to buffer against Russia and ultimately, to support nuclear expansion in the US.

“We hope to see rapid growth in uranium consumption in the US from both large reactors and small modular reactors,” Wright was quoted as saying in an interview with Bloomberg.

“The size of that right buffer would grow with time. We need a lot of domestic uranium and enrichment capacity,” he added.

Investors were quick to snap up uranium stocks on expectations that more investments are set to be poured into the sector.

Wright’s comments sparked rosy prospects for NexGen Energy Ltd. (NYSE:NXE), especially as it successfully explored massive uranium resources at the Patterson Corridor East, where two drill holes discovered high-grade levels of the said minerals.

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READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.