Top Nuclear Stock to Invest $1,000 In Today

The Rise of Nuclear Power Stocks and Fluor's Attractive Position

Investors have been increasingly drawn to nuclear power stocks, particularly those of start-up companies that are developing innovative reactor technologies. Companies like Nano Nuclear, NuScale, and Oklo have seen significant stock price increases, outperforming the broader market. However, not all nuclear-related investments are created equal. While these smaller players are gaining attention, some established companies with strong fundamentals and attractive valuations may offer better long-term prospects.

One such company is Fluor, a well-established engineering and construction firm with a significant stake in NuScale Power, a leading developer of small modular reactors (SMRs). Fluor itself has a track record of profitability, generating substantial free cash flow and maintaining an attractive valuation relative to both its earnings and cash flow. This combination makes Fluor a compelling option for investors looking to capitalize on the growing nuclear power sector.

Trump’s Vision for Nuclear Energy

President Donald Trump has expressed a clear vision for expanding the U.S. nuclear power capacity, aiming to quadruple it by 2050. To support this goal, he signed four executive orders in May aimed at accelerating the development of new nuclear power plants. These orders include directives for the Nuclear Regulatory Commission to expedite the approval process for new reactor licenses, the creation of a pilot program to deploy experimental reactors by 2026, and increased efforts by the Department of Energy to improve the nation's nuclear supply chain.

The Pentagon is also set to explore the use of nuclear reactors on military bases, further signaling the government's commitment to advancing nuclear technology. These initiatives are expected to create a favorable environment for nuclear power companies, potentially driving growth and investment in the sector.

Performance of Nuclear Start-Ups

Among the start-ups, Nano Nuclear Energy, NuScale Power, and Oklo have shown impressive performance over the past year. NuScale, for instance, has surged by 160% in the last 52 weeks, while Oklo's stock has risen more than 620%. Nano Nuclear, though less dramatic in its gains, has still outperformed the S&P 500. These figures highlight the enthusiasm surrounding small modular reactor technology and the potential for high returns in this niche.

However, despite the strong performance of these smaller companies, Fluor's stock has remained relatively stable, rising about 19% over the same period. While this may seem modest compared to the start-ups, Fluor's stronger financial position and lower valuation could make it a more attractive long-term investment.

Valuation and Financial Strength of Fluor

Fluor's valuation is particularly appealing when compared to its peers. Analysts forecast that Fluor will earn $470 million in 2026, $530 million in 2027, and $638 million in 2028. Based on these projections, Fluor's stock is valued at only 18.5 times forward earnings, which is significantly lower than the valuations of unprofitable start-ups like NuScale, Oklo, and Nano Nuclear.

In addition to its strong earnings outlook, Fluor generates positive free cash flow, with analysts expecting $343 million in 2024. When considering Fluor's net cash balance sheet, the enterprise-value-to-free-cash-flow ratio drops to just 21. Analysts also anticipate that Fluor's free cash flow will grow by more than 20% annually for the next three years, reaching $598 million by 2028. This growth trajectory suggests that Fluor could be classified as a value stock, with the potential to become a deep value stock after accounting for its stake in NuScale.

Should You Invest in Fluor?

While Fluor offers a strong foundation for investors interested in the nuclear power sector, it's important to consider other options as well. Some analyst teams have identified alternative investments that could deliver even higher returns. For example, historical data shows that stocks recommended by certain advisory services have generated exceptional returns, with some investments growing from $1,000 to over $1 million in a short time frame.

Despite this, Fluor's combination of profitability, strong cash flow, and attractive valuation positions it as a solid choice for investors seeking to benefit from the nuclear energy renaissance. With the right strategy and timing, Fluor could prove to be a valuable addition to a diversified portfolio.