The Best Nuclear Energy Stock to Invest $1,000 in Right Now

The 2010s were a dismal decade for nuclear energy stocks. The Fukushima disaster in 2011 prompted many countries to halt their nuclear power projects, and the COVID-19 pandemic further exacerbated this downturn by forcing uranium miners to suspend their operations.

However, the nuclear energy market broadly recovered in the 2020s as more countries rolled out new decarbonization initiatives and the power-hungry cloud and AI markets expanded. Safer nuclear reactor technologies also allayed fears of another devastating meltdown.

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Between 2024 and 2050, the International Atomic Energy Agency (IAEA) anticipates a global nuclear capacity increase of up to 2.6 times. To capitalize on this secular trend, which could easily turn a modest $1,000 investment into several thousand dollars over the next decade, investors should consider adding a few resilient nuclear stocks to their long-term portfolios. One of those stocks should be Cameco (NYSE: CCJ), one of the world's largest uranium miners.

Cameco benefits from rising uranium prices

Cameco, which is based in Canada, mined approximately 17% of the world's uranium in 2024. That makes it the second-largest miner after Kazatomprom (OTC: NATK.Y) in Kazakhstan. It operates its mines and mills across Canada, the U.S., and Kazakhstan.

Like many other uranium miners, Cameco struggled when the uranium spot price plunged from its peak of $136 per pound in June 2007 to just $18 per pound in November 2016. From 2011 to 2021, its annual revenue plummeted from $2.4 billion to $1.2 billion, with no single year of growth.

But by the end of November 2025, the spot price of uranium had risen back to $75.80 per pound. From 2021 to 2024, Cameco's annual revenue grew at a CAGR of 29%. For 2025, it expects its uranium revenue to rise 8% with an average realized price of approximately $87 per pound.

That recovery was driven by the market's renewed interest in nuclear power, geopolitical conflicts in uranium-rich regions, and the previous closures of uranium mines, which further restricted the available supply of uranium. Cameco restarted its mining operations at McArthur River and Key Lake in 2022, as uranium's spot prices bounced back. However, the market's demand continues to outstrip its available supply, as more countries expand their nuclear projects.

Cameco is becoming a one-stop shop for nuclear power

Cameco is typically considered a cyclical company, as its growth is closely tied to the volatile prices of uranium. But over the past few years, it diversified its business beyond its mines to become a "one-stop shop" for nuclear power solutions.

In 2021, Cameco increased its stake in Global Laser Enrichment (GLE) -- its joint venture with Silex (OTC: SILXY) -- from 24% to 49%. By integrating GLE's laser-powered tools into its core mining and conversion businesses, it was able to directly sell enriched uranium fuel.

In 2023, Cameco partnered with Brookfield Asset Management (NYSE: BAM) to acquireWestinghouse Electric, a leading nuclear power plant designer and builder. Its 49% stake in Westinghouse significantly reduced its long-term dependence on volatile uranium prices.

That expansion and evolution make Cameco a balanced play on the long-term growth of the nuclear energy market. It recently reduced its near-term output guidance at its McArthur River mine due to ground-freezing issues. Still, this decrease in production -- which mirrors similar output cuts at Kazatomprom and other miners -- actually drives up uranium prices and boosts its near-term revenues and profits.

Why Cameco is a safe place to park $1,000

From 2024 to 2027, analysts expect Cameco's revenue and earnings per share (EPS) to grow at a CAGR of 9% and 90%, respectively, as uranium prices continue to rise. Some bullish analysts expect the uranium spot price to climb to $100 in 2026 and $140 in 2027 as the rapid expansion of the cloud, AI, and data center markets spurs fresh demand for new nuclear power projects. At $86, Cameco's stock might seem a bit pricey at 56 times next year's earnings. However, its scale, diversification, and stable growth all justify that higher valuation -- and it should have plenty of room to run as the nuclear energy market expands again.

Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Brookfield Asset Management and Cameco. The Motley Fool has a disclosure policy.