Energy stocks are often considered evergreen long-term investments because the world will always need more power. Most of them endure boom-and-bust cycles that generally last a few years, but they tend to grow over more extended periods and outpace inflation.
So even though the S&P 500 is hovering near its all-time highs and looks historically expensive at 29 times earnings, it might still be a great time to accumulate a few promising energy stocks. Let's take a look at two of my favorites: GE Vernova (GEV 1.97%) and Cameco (CCJ 0.08%).
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GE Vernova
GE Vernova, the former energy division of GE (GE 5.74%), was spun off as a stand-alone company in 2024. It operates three main businesses: Power (which provides gas turbines for combined-cycle plants, steam turbines for coal, gas, and nuclear plants, and services for nuclear plants), Electrification (which sells transformers, breakers, substations, high-voltage direct current systems, along with a wide range of automation, optimization, and protection services for electrical grids), and Wind (which mainly sells onshore and offshore wind turbines).
NYSE: GEV
Key Data Points
The Power segment, which accounted for over half of its 2025 orders, consistently grew its orders by the high double digits over the past year. The Electrification segment, which accounted for nearly a third of its orders, also grew rapidly. Both of those businesses benefited from the rapid expansion of the power-hungry cloud, data center, and AI markets. That robust growth also offset the weaknesses of its Wind segment, which grappled with delays in onshore wind projects, execution issues in offshore wind projects, and supply chain constraints.
From 2025 to 2028, analysts expect GE Vernova's revenue and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to grow at CAGRs of 15% and 54%, respectively. It expects its Power and Electrification businesses to keep expanding as it right-sizes its weaker Wind business. With an enterprise value of $206.5 billion, it still looks reasonably valued relative to its growth rates at 36 times this year's adjusted EBITDA. That makes it a simple way to profit from the soaring energy needs of massive data centers.
Cameco
Cameco, which is based in Canada, is the world's second-largest uranium miner after Kazakhstan's Kazatomprom (OTC:NATK.Y). It operates mines across Canada, the U.S., and Kazakhstan, and it mined 17% of the world's uranium in 2024.
NYSE: CCJ
Key Data Points
From 2011 to 2021, Cameco's annual revenue plunged from $2.4 billion to $1.5 billion after the Fukushima disaster in 2011 drove many countries to pause their nuclear expansion plans. Uranium's spot price plummeted from its peak of $136 per pound in June 2007 to just $18 in November 2016, prompting Cameco to shut down its largest mines.
But from 2021 to 2024, Cameco's revenue doubled from $1.5 billion to $3.1 billion as the rapid growth of the cloud, data center, and AI markets drove more countries to restart their nuclear projects. The development of safer, more power-efficient reactors supported that recovery, and Cameco restarted its mines to meet the growing demand for uranium. Uranium now trades at about $94 per pound and should continue to appreciate unless another disaster derails the industry.
As the uranium market warms up again, Cameco is diversifying its business to curb its dependence on mining. In 2021, it doubled its stake in Global Laser Enrichment (GLE) -- its uranium enrichment joint venture with Silex (SILXY 4.34%) -- from 24% to 49%. In 2023, it acquired a 49% stake in Westinghouse Electric, a top nuclear power plant designer and builder. Those investments should support its evolution into a more diversified atomic energy company.
From 2025 to 2028, analysts expect Cameco's revenue and adjusted EBITDA to grow at CAGRs of 7% and 14%, respectively. With an enterprise value of $66.4 billion, it might seem a bit pricey at 36 times this year's adjusted EBITDA, but its direct exposure to the booming uranium market justifies that higher valuation.
