While investors didn't give the announcement Centrus Energy (LEU -3.58%) made about a new deal on Monday much mind, another company's commentary about the deal provided investors with sufficient confidence to drive the stock higher. And that confidence has sustained the stock's continuous rise through today's session.
According to data provided by S&P Global Market Intelligence, shares of Centrus Energy have climbed 12.3% from the end of trading last Friday through the market's close on Thursday.
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Investor confidence in the company's new deals is growing stronger
Expanding its partnership with Korea Hydro & Nuclear Power (KHNP), Centrus Energy announced on Monday that the two companies had signed a memorandum of understanding (MoU) to explore the possibility of growth at Centrus Energy's uranium enrichment facility in Ohio.
Centrus Energy and KHNP, which operates 26 nuclear reactors worldwide, had finalized a supply contract earlier this year to support construction of new uranium enrichment capacity at the Ohio facility.
News of the MoU, in and of itself, did little to fuel investor excitement (shares closed lower on the day of the announcement); however, Evercore ISI came out in support of the deal on the following day -- and investors responded. According to The Fly, Evercore ISI recognized the MoU as an indication that Centrus Energy is emerging as a prominent player in the growing U.S. nuclear energy industry. Shares of Centrus Energy closed nearly 13% higher on the day that Evercore ISI shared its perspective.
Should investors power their portfolios with Centrus Energy stock now?
While investors have been busy fueling their holdings with all sorts of nuclear energy stocks recently, many of them are highly speculative investments as the companies are not yet generating revenue. Centrus Energy, on the other hand, is posting both sales and profits. For investors interested in nuclear energy stocks, Centrus Energy is worthy of strong consideration.
