Is Centrus Energy Stock Worth Buying After Recent Drop?

Centrus Energy LEU has seen significant volatility in recent months as investors weigh long-term nuclear fuel demand against near-term project execution and policy uncertainties. The company remains a key player in uranium enrichment and advanced nuclear fuel development.

While its long-term positioning in the nuclear supply chain remains compelling, recent stock performance and earnings revisions suggest a more balanced outlook in the near term.

LEU Stock Pullback Follows Strong Long-Term Gains

Centrus Energy shares have experienced a notable pullback in 2026. The stock is down roughly 20% year to date and has declined more than 20% over the past three months.

Centrus Energy Corp. Price and Consensus

Centrus Energy Corp. price-consensus-chart | Centrus Energy Corp. Quote

Despite the recent drop, the longer-term performance remains strong. Over the past year, the stock has surged more than 140%, reflecting strong investor enthusiasm around uranium supply constraints and the strategic importance of domestic enrichment capacity.

Such volatility is not uncommon in companies tied to the nuclear fuel cycle. Market sentiment can shift quickly as investors react to changes in uranium supply dynamics, government policy and the timelines associated with large-scale infrastructure projects.

Centrus Energy Valuation Trades at Premium Multiples

Even after the recent decline, Centrus Energy continues to trade at elevated valuation levels relative to peers. The stock currently trades near 59 times forward earnings.

This multiple stands well above the average valuation for the mining non-ferrous industry as well as the broader basic materials sector and the S&P 500.
The premium reflects investor expectations that Centrus Energy will play a major role in rebuilding the U.S. uranium enrichment supply chain. The company’s leadership in High Assay Low-Enriched Uranium production and its expanding enrichment capacity are key factors driving that long-term growth narrative.

LEU Earnings Outlook Shows Modest Near-Term Growth

Consensus projections indicate moderate revenue growth over the next two years. Annual revenues are expected to reach roughly $458 million in 2026 and about $490 million in 2027.

On the earnings front, analysts expect earnings per share of approximately $3.27 in 2026 and $3.38 in 2027. This follows adjusted earnings of $3.90 per share reported in 2025.

However, estimates for both 2026 and 2027 have moved lower in recent weeks. These downward revisions highlight investor caution as the company navigates shipment timing, contract negotiations and the early stages of its enrichment expansion.

Centrus Energy's Liquidity Supports Expansion Plans

Centrus Energy enters this investment phase with a strong liquidity position. The company ended 2025 with approximately $2 billion in unrestricted cash.

Management plans capital deployment of roughly $350-$500 million in 2026. These investments are aimed at supporting centrifuge manufacturing capacity and the broader enrichment expansion program.

In addition to internal resources, the company is pursuing additional low-cost capital through national security programs and prepay or offtake structures with customers. This funding flexibility could help support construction milestones without relying heavily on more expensive financing sources.

LEU Outlook Reflects Balanced Near-Term Risk Reward

The near-term outlook for Centrus Energy reflects a mix of promising long-term fundamentals and short-term uncertainties. Demand for uranium enrichment and

advanced nuclear fuel remains supportive as countries expand nuclear power to meet carbon-reduction goals.

At the same time, execution risks tied to project timelines, shipment logistics and contract negotiations continue to influence earnings visibility. These factors have contributed to the recent downward revisions in earnings expectations.

For investors evaluating uranium-related stocks, companies such as Cameco Corporation CCJ and Uranium Energy Corp. UEC also provide exposure to the nuclear fuel supply chain through uranium production and resource development.

Currently, Centrus Energy carries a Zacks Rank #3 (Hold), suggesting the stock may perform roughly in line with the broader market in the near term while investors monitor the company’s progress in expanding enrichment capacity and scaling future HALEU production. 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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