For the second trading day in a row -- literally every trading day so far this year -- NuScale Power (SMR 4.44%) stock moved higher on Monday.
Shares of the start-up manufacturer of small modular (nuclear) power reactors surged 14.9% through 10:45 a.m. ET after Politico reported the U.S. House of Representatives will focus on nuclear power in the New Year.
Image source: Getty Images.
What are legislators up to?
The House Energy Subcommittee will hold a hearing on how to assist deployment of nuclear power plants, reports Politico, including discussing how to cut regulatory red tape, and what implementing rules it can pass to further the series of executive orders promoting nuclear energy that President Trump issued last May.
If you recall, these four orders included plans to have:
- Three experimental nuclear reactors operational by July 4, 2026.
- Multiple small modular reactors (SMRs) deployed by the end of 2027.
- And at least one nuclear reactor up and running on a military base by 2028.
Think all of the above might be good news for NuScale Power stock? So do many other investors. That's why the stock is skyrocketing.
NYSE: SMR
Key Data Points
Is NuScale stock a buy?
Most analysts polled by S&P Global Market Intelligence still don't think NuScale can turn a profit before 2030. But the President's plan for accelerated nuclear deployments -- and accelerated deployment of SMRs in particular -- suggests this prediction may be too conservative.
I personally don't buy it. In fact, sources inside the industry tell me the first operational SMR nuclear reactors probably won't come online before 2030 -- which would imply profits won't start flowing for years after that. Unless you're willing to run the risk President Trump's nuclear plans are overoptimistic, it's probably best to avoid NuScale stock until the situation becomes clearer.
