Centrus Energy Corp. (LEU): A Bull Case Theory

We came across a bullish thesis on Centrus Energy Corp. on Astute Investor’s Calculus’s Substack by Shailesh Kumar, MBA and James Foord. In this article, we will summarize the bulls’ thesis on LEU. Centrus Energy Corp.'s share was trading at $201.54 as of September 3^rd. LEU’s trailing and forward P/E were 32.66 and 51.02, respectively according to Yahoo Finance.

Centrus Energy (LEU) has emerged as a strategic linchpin in America’s nuclear revival, uniquely positioned as the only U.S.-listed company capable of producing enriched uranium at commercial scale. With nuclear energy gaining renewed momentum as a solution to energy security, climate goals, and rising electricity demand from AI data centers, Centrus offers exposure to a once-in-a-generation power shift.

Its Piketon, Ohio facility is the only NRC-licensed site producing HALEU, a next-generation fuel required for advanced reactors, giving the company a critical foothold in a market otherwise dominated by foreign state-backed suppliers. This advantage is reinforced by bipartisan support for nuclear power and recent executive orders accelerating reactor deployment, mandating domestic enrichment, and prioritizing nuclear as a core component of U.S. energy policy. Demand from utilities and Big Tech companies further underpins long-term growth.

Financially, Centrus is positioned from strength, with $3.6–3.8 billion in contracted backlog, $833 million in cash, and expanding margins, offering stability despite volatile revenues. The company has invested in supply chain readiness, secured a Department of Energy partnership to extend HALEU production, and is signing contingent contracts with utilities preparing for future needs. While LEU’s stock is volatile—rising over 350% in the past year before a sharp correction—its swings reflect policy-driven momentum rather than deteriorating fundamentals.

Risks remain, including dependence on government support, multi-year construction timelines, market competition, and commodity volatility. Still, Centrus’ unique positioning, robust financial base, and role in ensuring U.S. energy security make it a high-risk, high-reward investment. If it scales production successfully, Centrus could become a monopoly-like supplier in the western nuclear market, offering asymmetric upside for patient investors.

We came across a bullish thesis on Centrus Energy Corp. (LEU) on WallStreetBets subreddit page by devolution_king. In this article, we will summarize the bulls’ thesis on LEU. Centrus Energy Corp. (LEU)’s share was trading at $54.85 as of October 2024. LEU’s trailing and forward P/E were 9.69 and 19.30 respectively according to Yahoo Finance. The thesis highlights AI-driven energy demand, national security concerns, and nuclear expansion benefits.

Centrus Energy Corp. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held LEU at the end of the first quarter which was 22 in the previous quarter. While we acknowledge the potential of LEU as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.