Energy Fuels (UUUU 7.57%) stock tumbled 7% through 11:55 a.m. ET Monday -- and no one seems to know why.
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Round up the usual suspects
Uranium prices aren't the problem. According to the latest data from Trading Economics, the price of uranium is going positively parabolic. Just over the last two months, the price per pound of uranium is up 12% to $88.40 -- the highest it's been since May 2024, and still making a beeline for the highest prices in the last decade ($106), recorded in February 2024.
Headline news isn't the problem, either. The biggest news in the uranium market today is that South Korea just announced it will build two big new nuclear plants. State-owned Korea Hydro & Nuclear Power (KHNP) is hoping to secure its construction permits in the early 2030s and have the reactors up and running by 2037 and 2038, respectively.
That's a bullish sign for global uranium demand -- not a reason for Energy Fuels stock to be down 7%.
NYSEMKT: UUUU
Key Data Points
Is Energy Fuels stock a buy?
So why is Energy Fuels stock down today? Allow me to state the obvious:
The stock costs too much.
Analysts polled by S&P Global Market Intelligence expect Energy Fuels to more than double its revenues this year compared with 2025, and to grow revenue sixfold over the next three years, flipping the company from losses to profits by 2028. But here's the thing:
Even if Wall Street analysts are right, the stock's 2028 GAAP profits will be only $0.43 per share. At nearly $24 per share today, that values Energy Fuels stock at 55 times the profit it might (or might not) earn three years from now.
That's too rich for my blood. Energy Fuels stock remains a sell for me.
