UUUU Vs LEU: Which US Uranium Stock is the Better Buy Right Now?

Energy Fuels Inc. UUUU and Centrus Energy LEU are prominent U.S.-based companies in the uranium industry. Both are positioned to benefit from the accelerating global transition toward nuclear energy as a clean power source.

Despite this favorable long-term trend, both companies have faced challenges due to a 20.5% decline in uranium prices over the past year amid abundant supply and uncertain demand. However, after hovering at the 18-month-low of $64 in March and April, uranium prices have somewhat recovered to around $71 per pound.

In a significant policy move, U.S. President Donald Trump signed orders on Friday to restore the United States’ global leadership in nuclear energy.  In recent years, the United States has fallen behind China and Russia in building reactors. The initiative seeks to facilitate the expansion of American nuclear energy capacity from approximately 100 GW in 2024 to 400 GW by 2050.

As uranium is essential for fueling nuclear power, this is expected to revitalize the uranium market and support price recovery. The long-term outlook for uranium remains strong, driven by the growing push for clean energy. The United States is the largest consumer of uranium at 47 million pounds annually, with increasing demand from utilities and the U.S. government for domestic supply.

Following this development, UUUU shares have gained 21%, and LEU shares have risen 37%. The LEU stock also hit a 52-week high of $129.12 yesterday. 
For investors considering this sector to capitalize on future uranium growth, we analyze and compare the fundamentals, growth prospects and risks of UUUU and LEU to determine which stock offers the more attractive investment opportunity.

The Case for Energy Fuels

UUUU has long held a leadership position in U.S. uranium production, accounting for approximately two-thirds of the country’s output since 2017. Its White Mesa Mill in Utah stands out as the only fully licensed and operational conventional uranium processing facility in the United States. The company aims to transform this asset into a critical minerals hub, producing uranium, vanadium, rare earth elements (REEs) and potentially medical radioisotopes.
The acquisition of Base Resources Limited in October 2024 gave Energy Fuels access to the promising Toliara Mineral Sand Project, boosting its potential as a key producer of titanium and zirconium minerals, alongside REEs.

Although expanding into REEs poses challenges due to China’s market dominance, Energy Fuels possesses the technical expertise, strategic assets and competitive advantages to establish a foothold in this sector. The increasing push to increase domestic production for uranium and REEs is a major growth opportunity for UUUU.

In the first quarter of 2025, Energy Fuels’ revenues moved down 33.5% year over year to $16.9 billion. The decline was primarily due to the company’s decision to defer uranium sales in response to lower prices. Instead, revenues were driven by Heavy Mineral Sands (“HMS”) as the company sold 6,836 tons of rutile, 12,852 tons of ilmenite and 1,429 tons of zircon.

Energy Fuels incurred a loss of 13 cents per share against earnings of 2 cents in the year-ago quarter.  This reflected the lack of uranium sales, as well as the ongoing ramp-up at its Pinyon Plain, La Sal and Pandora Mines. Higher costs, associated with the increased headcount of retained Base Resources employees, the Kwale mine reclamation and the lower grade of HMS produced, also impacted the results.

Energy Fuels produced 150,000 pounds of finished uranium in the first quarter of 2025. It also purchased 50,000 pounds of uranium at $64.75 per pound to add to its inventory and sell the same when prices rebound.

In April 2025, UUUU mined 4,604 tons of ore, containing roughly 151,400 pounds of uranium with an average grade of 1.64% uranium at the Pinyon Plain mine. Per the company, this is one of the highest-grade uranium mines in the history of the United States. Also, April's results represented the largest monthly production rate since mining began last year.

Energy Fuels expects to process 700,000 pounds of uranium in the fourth quarter, resulting in the production of up to 1,000,000 pounds of finished uranium in 2025. This is way higher than the company’s previous target of 200,000-250,000 pounds. UUUU plans to mine 875,000-1,435,000 pounds of uranium in 2025 compared with the previously mentioned 730,000-1,170,000 pounds.

However, uranium sales for 2025 are projected at 220,000 pounds compared with the previously mentioned 200,000-300,000 pounds. In 2024, the company sold 450,000 pounds of uranium. In case uranium prices recover from current levels, we expect the company to make more uranium sales and revise the sales guidance.

Supported by a debt-free balance sheet, Energy Fuels is ramping up uranium production while advancing REE capabilities. With its current operations and development pipeline, the company can eventually produce up to 6 million pounds of uranium annually.

The Case for Centrus Energy

The company, through its LEU segment, supplies various components of nuclear fuel to commercial customers from its global network of suppliers. Through this segment, Centrus Energy provides the enrichment component of Low-Enriched Uranium (LEU) primarily to utilities that operate commercial nuclear power plants. LEU is a critical component in the production of nuclear fuel for reactors that produce electricity.

The enrichment component of LEU is measured in Separative Work Units (SWU). Centrus Energy also sells natural uranium hexafluoride, and occasionally sells uranium concentrates, uranium conversion or LEU with the natural uranium hexafluoride and SWU components combined into one sale.

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

Centrus Energy generated total revenues of $73.1 million in the first quarter of 2025, a 67% year-over-year surge. Revenues from the LEU segment skyrocketed 117% year over year to $51.3 million, driven by a 46% increase in the average price of SWU sold and a 49% increase in the sales volume of SWU. There were no uranium sales in the quarter. 

Revenues from the Technical Solutions segment rose 8% year over year to $21.8 million, which was led by a $2-million increase in revenues generated by the HALEU Operation Contract. Revenues from the HALEU Operation Contract are recorded on a cost-plus-incentive-fee basis and include a target fee for Phase 2 of the contract.

Centrus Energy currently has a $3.8-billion revenue backlog, which includes long-term sales contracts with major utilities through 2040. The LEU segment’s backlog is at $2.8 billion.

LEU’s existing process buildings can host 3.5 million SWU per year, and the company has the ability to expand to 7 million SWU per year.

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 the HALEU Operation Contract with the Department of Energy (DOE), it has delivered 670 kilograms of HALEU as of March 25. On Nov. 5, 2024, the HALEU Operation Contract was modified to extend the Phase 2 period of performance to June 30, 2025. DOE has also increased the Phase 2 contract value and related funding to $152.3 million.

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. 

HALEU market value is expected to grow from $0.3 billion in 2025 to $2.2 billion by 2030 and $6.2 billion by 2035.

How Do Estimates Compare for UUUU & LEU?

The Zacks Consensus Estimate for Energy Fuels’ 2025 revenues of $41.4 million suggests a year-over-year drop of 47%. The company is expected to incur a loss of 28 cents per share in 2025, indicating no change from that reported in 2024. The loss estimate for 2025 has moved down over the past 60 days. There has been no movement in 2026 estimates.

The Zacks Consensus Estimate for UUUU’s 2026 revenues of $137.6 million suggests a year-over-year upsurge of 232.4%, with earnings per share pegged at 6 cents, marking the first year of expected profits for the company.

The Zacks Consensus Estimate for Centrus Energy’s 2025 revenues is at $433.5 million, implying a 1.9% dip from the year-ago quarter’s actual. The consensus mark for LEU’s earnings is pegged at $3.35  per share, which indicates a year-over-year decline of 25%. Over the past 60 days, the consensus mark has moved up 70%.

The Zacks Consensus Estimate for Centrus Energy’s 2026 revenues of $469.3 million suggests year-over-year growth of 8.2%. The estimate for earnings is pinned at $2.63, indicating a year-over-year decline of 21.5%. The earnings estimate has moved down 12.9% over the past 60 days.

(Find the latest earnings estimates and surprises on Zacks Earnings Calendar.)

Energy Fuels & Centrus Energy: Price Performance & Valuation

UUUU shares have gained 6.3% so far this year, whereas LEU shares have surged 92%.

Energy Fuels is trading at a forward price-to-sales multiple of 13.47X. Centrus Energy is cheaper in comparison, trading a forward price-to-sales multiple of 4.79X.

UUUU or LEU: Which is the Better Investment Option?

Both Energy Fuels and Centrus Energy are ramping up their capabilities to capitalize on the anticipated surge in nuclear demand. UUUU’s efforts to diversify beyond uranium into REEs and to create a supply chain independent of China are commendable. Meanwhile, Centrus Energy is the only U.S. company licensed to produce HALEU, which is essential for the next generation of nuclear reactors.

LEU is currently more attractive than UUUU from a valuation standpoint. It also scores over Uranium Energy in terms of price performance. Energy Fuels has seen downward estimate revisions for 2025 and is expected to incur a loss due to lower expected sales. Given these factors, Centrus Energy is the more appealing option at the moment.

Centrus Energy currently flaunts a Zacks Rank #1 (Strong Buy), while UUUU has a Zacks Rank #4 (Sell).

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

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

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