LEU vs. UEC: Which Uranium Stock is the Smarter Bet Right Now?

Centrus Energy LEU and Uranium Energy UEC are U.S.-based uranium companies positioned to benefit from the country’s drive for nuclear energy independence. 

While this long-term trend is supportive, uranium prices have faced headwinds this year due to ample supply and demand uncertainty. Recently, prices have recovered to around $76.50 per pound, supported by rising expectations of higher nuclear power capacity and lower supply expectations. Even with this uptick, uranium prices are still down 3.7% year over year.

Global interest in nuclear power is accelerating. India aims to boost nuclear capacity to at least 100 GW by 2047, while the United States plans to quadruple its nuclear capacity to 400 GW by 2050. Given uranium’s vital role in nuclear energy, these trends could drive long-term demand and support price recovery. For investors considering this sector to capitalize on future uranium growth, we analyze and compare the fundamentals, growth prospects and risks of LEU and UEC to determine which stock offers the stronger investment case.

The Case for Centrus Energy

The company, through its LEU segment, supplies components of nuclear fuel to commercial customers. This includes the supply of the enrichment component of Low-Enriched Uranium (“LEU”) to utilities that operate commercial nuclear power plants. The enrichment component of LEU is measured in Separative Work Units (SWU). Centrus Energy also sells natural uranium hexafluoride.

The Technical Solutions segment provides advanced uranium enrichment services to the nuclear industry and the U.S. government, as well as advanced manufacturing and other technical services to government and private sector customers.

In the second quarter of 2025, Centrus Energy reported total revenues of $155 million, down 18% year over year. LEU segment’s revenues fell 26% year over year to $125.7 million, mainly owing to the absence of uranium sales due to low prices. The segment also reported a 27% decline in sales volumes of SWU, which was somewhat offset by 24% SWU higher prices.  Technical Solutions revenues jumped 48% to $28.8 million, driven by a $9.1 million boost from the HALEU Operation Contract.

Earnings per share were $1.59, 16% lower than the year-ago quarter on lower revenues and higher selling, general and administrative expenses and interest expenses.

Centrus Energy currently has a $3.6 billion revenue backlog, which includes long-term sales contracts with major utilities through 2040.

Centrus Energy is the only company with a license for High-Assay Low-Enriched Uranium (HALEU) production to supply commercial and national security needs. Under its HALEU Operation Contract with the Department of Energy (DOE), it has already delivered 920 kilograms of HALEU and has moved into Phase III. On June 20, 2025, Centrus Energy secured a contract extension from the DOE authorizing an additional year of production through June 30, 2026. The contract includes provisions for up to eight additional years of production beyond that, contingent upon federal appropriations and DOE discretion.

HALEU is expected to be needed in the next few years to power both existing reactors and a new generation of advanced reactors to meet the world’s growing need for carbon-free electricity. While low-enriched uranium contains uranium concentration below 5%, HALEU offers concentration in the range of 5-20% with advantages such as improved efficiency, extended fuel cycles and lower waste.

The HALEU market value is expected to grow from $0.26 billion in 2025 to $6.2 billion by 2035. Centrus Energy is planning to expand production capacity in Ohio so that it can meet the domestic demand for HALEU as well as low-enriched uranium.

The Case for Uranium Energy

Uranium Energy has a combined 12.1 million pounds of U.S.-licensed uranium production capacity from three central processing plants. The company also boasts the largest resource portfolio in the United States and one of the largest in North America.

In the last reported third quarter of fiscal 2025 (ended April 30, 2025), Uranium Energy did not generate revenues as it held back on uranium sales, considering the volatility in the market. 

Adjusted loss per share was six cents compared with the loss of five cents in the year-ago quarter, due to a 70% surge in total operating expenses as well as no revenues. The company's results have been impacted by higher operating expenses over the last few quarters.

The company is meanwhile investing in building the next generation of low-cost uranium projects that will be competitive on a global basis and utilize the ISR (in-situ recovery) mining process, which is expected to reduce environmental impact compared with conventional mining.

In August 2024, UEC restarted uranium extraction at its fully permitted and past-producing, Christensen Ranch Mine ISR (in-situ recovery) operation in Wyoming. It is expected to ramp up while new production areas are being constructed and completed in 2025.

In the third quarter of fiscal 2025, UEC announced the startup of Header House 10-7, marking the first new production area at Christensen Ranch under the phased restart. The header house, along with past-producing wellfields 7, 8 and 10, has been delivering feed to the satellite ion exchange plant. This resulted in a solid increase in uranium head grade from the operating wellfields.  Also, construction at the Burke Hollow Project continues to progress as planned, and the company is also advancing the Roughrider project.

Recently, UEC’s Sweetwater Uranium Complex has been designated as a transparency project by the U.S. Federal Permitting Improvement Steering Council. It is thus expected to play a key role in achieving the United States' goal of nuclear fuel independence. The Sweetwater Plant has a licensed annual capacity of 4.1 million pounds of uranium. It is expected to be the largest dual-feed uranium facility in the United States, licensed to process both conventional ore and ISR resin. This will provide UEC unmatched flexibility to scale production across the Great Divide Basin, leveraging its leading domestic resource base.

How do Estimates Compare for LEU & UEC?

The Zacks Consensus Estimate for Centrus Energy’s 2025 revenues is $451.4 million, implying 2.1% growth from the year-ago quarter’s actual. The consensus mark for 2025 earnings is pegged at $4.23 per share, which indicates a year-over-year decline of 5.4%.

The consensus estimate for Centrus Energy’s 2026 revenues of $502.8 million indicates year-over-year growth of 11.4%. The estimate for earnings is pinned at $3.36 per share, indicating a year-over-year decline of 20.6%.

The Zacks Consensus Estimate for Uranium Energy’s fiscal 2025 revenues is $79.7 million, implying a substantial improvement from the $0.22 million reported in the year-ago quarter. The company is, however, anticipated to report a loss of 17 cents per share in fiscal 2025, wider than the loss of nine cents in fiscal 2024.

The Zacks Consensus Estimate for Uranium Energy’s 2026 revenues of $77.95 million indicates a year-over-year dip of 2%. The company is expected to report a loss of three cents per share. 

In the past 60 days, earnings estimates for Centrus Energy have moved higher for both 2025 and 2026. Meanwhile, Uranium Energy has experienced downward revisions, as shown in the chart below.

Centrus Energy & Uranium Energy: Price Performance & Valuation

LEU shares have surged 245.5% year to date while UEC shares have gained 83%.

Centrus Energy is trading at a forward price-to-sales multiple of 8.58X. Uranium Energy is trading way higher, at a forward price-to-sales multiple of 56.89X.

LEU or UEC: Which is the Better Investment Option?

Both Centrus Energy and Uranium Energy face short-term revenue headwinds from weak uranium prices. However, both are ramping up their capabilities to capitalize on the anticipated surge in nuclear demand. Centrus Energy has a clear edge as the only U.S. company licensed to produce HALEU, a crucial fuel for next-generation reactors. 

LEU also looks more attractive from a valuation and price performance standpoint. UEC has seen downward estimate revisions and is expected to incur losses in both 2025 and 2026. In contrast, the estimates for LEU have moved up, reflecting analyst optimism. Considering these factors, it will be wise to steer clear from UEC stock as of now and Centrus Energy seems to be a better investment choice. LEU currently carries a Zacks Rank #3 (Hold), while UEC has a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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