Looking to Beat the Stock Market? 1 Reason to Set Your Sights on NuScale Power

The S&P 500 has gained about 13% in 2025 through market close Oct. 13.

From a historic perspective, that's an excellent run for the market. And yet, one stock that's gained seven times more than the S&P 500 is a nuclear energy stock you may not have heard of: NuScale Power (NYSE: SMR).

It's a company with an idea that could change the energy landscape. And it looks like a stock that could continue beating the market in the near future.

Image source: Getty Images.

Small reactors with big potential

NuScale is designing what's called a small modular reactor (SMR).

As the name suggests, these SMRs are smaller than traditional nuclear reactors. As such, they take less time to build, are less expensive to build, and can be assembled in places that may not have access to grid power.

Given that electricity demand is expected to spike 25% by 2030 from 2023 levels -- and 78% by 2050 -- NuScale's technology is finding itself in the right place at the right time.

To add fuel to the bullish thesis, NuScale is currently the only U.S. company with an SMR design that's been approved by the Nuclear Regulatory Commission (NRC). That gives it a first-mover advantage in a market that could be worth tens of billions, especially as data center operators and utilities look to secure clean power.

Of course, there are reasons to be cautious. At a market valuation of about $11 billion, the stock trades at about 81 times trailing 12-month sales. Meanwhile, its total revenue over the last 12 months was about $56 million. Clearly, a lot of expectation is baked into its current price.

Still, for aggressive investors who are betting on a future of clean energy, NuScale's first-mover advantage in the SMR space makes it a compelling play. If it can deliver on its promise, the stock's hot run could continue and it could keep beating the S&P 500. With that rich valuation, however, cautious investors may want to wait for more concrete progress -- like a commercially operative SMR -- before jumping in.

Steven Porrello has positions in NuScale Power. The Motley Fool recommends NuScale Power. The Motley Fool has a disclosure policy.