URA: Major Power Demand Growth, Strong Momentum In Uranium And Nuclear Stocks

seekingalpha05-26

Monty Rakusen There’s no let-up in the AI theme. As the first quarter earnings season wraps up on Wall Street, FactSet notes that there was a record high in mentions of “AI” on corporate conference ...

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As the first quarter earnings season wraps up on Wall Street, FactSet notes that there was a record high in mentions of “AI” on corporate conference ...</p>\n\n<a href=\"https://seekingalpha.com/article/4695700-ura-major-power-demand-growth-strong-momentum-in-uranium-and-nuclear-stocks\">Source Link</a>\n\n</div>\n","source":"seekingalpha_fund","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>URA: Major Power Demand Growth, Strong Momentum In Uranium And Nuclear Stocks</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nURA: Major Power Demand Growth, Strong Momentum In Uranium And Nuclear Stocks\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-05-26 18:50 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4695700-ura-major-power-demand-growth-strong-momentum-in-uranium-and-nuclear-stocks><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Monty Rakusen There’s no let-up in the AI theme. As the first quarter earnings season wraps up on Wall Street, FactSet notes that there was a record high in mentions of “AI” on corporate conference ...</p>\n\n<a href=\"https://seekingalpha.com/article/4695700-ura-major-power-demand-growth-strong-momentum-in-uranium-and-nuclear-stocks\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU0175139822.USD","symbol_name":"AB FCP I Global Equity Blend A USD","start_time":0,"source_url":"https://seekingalpha.com/article/4695700-ura-major-power-demand-growth-strong-momentum-in-uranium-and-nuclear-stocks","article_id":"2438863229","we_media_id":null,"thumbnails":["https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1225961609/image_1225961609.jpg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2438863229","pubTimestamp":1716720610,"sourceInfo":{"source_id":"seekingalpha_fund","name":"Seeking Alpha"},"weMediaInfo":null,"summary":"Monty Rakusen There’s no let-up in the AI theme. 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As the first quarter earnings season wraps up on Wall Street, FactSet notes that there was a record high in mentions of “AI” on corporate conference calls. Then just last week, NVIDIA (NVDA) reaffirmed the durability of artificial intelligence, beating top and bottom-line estimates while raising its dividend and announcing a 10:1 stock split. We have also seen the Utilities sector put on a show as AI’s impacts broaden. The reality is that more data-center demand will put stress on the power grid, and new sources of energy are required to fuel today’s economy. Uranium and nuclear power are two of those areas.  I am upgrading the Global X Uranium ETF (NYSEARCA:URA) from a hold to a buy. I was intrigued by the fund in March 2023, but was waiting for bullish chart developments before I would issue a buy rating. A breakout indeed unfolded the following summer. AI Dominates Corporate Chatter   FactSet Goldman Sees Major US Power Demand Growth Through 2030   Goldman Sachs According to the issuer, URA delivers efficient access to a basket of companies involved in mining uranium and producing nuclear components. Global X notes that uranium will likely play a key role in the global energy transition, with some estimates suggesting that reactor demand could rise from an estimated 65,650 metric tons in 2023 to nearly 130,000 in 2040. URA is a fast-growing ETF, now with more than $3.5 billion in assets under management. When I first analyzed the product early last year, AUM was merely $1.3 billion. Along with asset-price appreciation, investor flows have been impressive with this thematic ETF. URA’s 0.69% annual expense ratio is not all that cheap, but the fund has paid a trailing 12-month dividend yield of 5.25%.  What’s more, share-price momentum has been very impressive in the last few months, earning URA an A+ ETF Grade by Seeking Alpha. Prospective investors should be aware that the fund can be volatile at times, and its somewhat concentrated allocation is another risk. Still, liquidity metrics are robust with average daily volume of more than 3 million shares while its 30-day median bid/ask spread is narrow at three basis points. Looking closer at the portfolio, the 4-star, Bronze-rated ETF by Morningstar plots on the far-right side of the style box, indicating its bent to the growth style. Though just 18% of URA is considered value, there is ample size diversification given that more than half of the fund is invested in small and mid-cap companies.  Naturally, after the strong rally since Q1 last year, the P/E multiple has expanded from 14 when I last reviewed URA to slightly more than 18 today. Still, with a long-term EPS growth rate of 18%, the PEG ratio is very attractive at just 1.0. URA: Portfolio & Factor Profiles   Morningstar URA is of course a concentrated bet on the growth in the uranium and nuclear slices of the market, but that also means there’s a high allocation to the Energy sector. More than 70% of the ETF is invested in that small segment of the global equity arena.  There is also a slight overweight to the cyclical Industrials sector. Materials and Information round out the allocation. Investors should pay particular attention to the goings on with Cameco Corp (CCJ) - the world’s largest publicly traded uranium producer, based in Canada. URA: Holdings & Dividend Information   Seeking Alpha Seasonally, URA tends to struggle during much of the latter half of the second quarter, but with shares up 10% in the past month, the bulls have powered the ETF through any kind of bearish seasonal pattern. But June has also been a weak month of late, so some caution is warranted here. URA: Weak Seasonal Period Ongoing   Seeking Alpha The Technical Take With a solid valuation, concentrated portfolio, and concerning seasonals, URA’s technical chart is impressive. Notice in the graph below that shares broke out from a consolidation pattern in Q3 last year. The $23 to $25 zone was key resistance after a protracted downturn from a high of $31.60 notched in late 2021 through March 2023. The bulls were soon to take charge, and that’s evidenced by URA’s long-term 200-day moving average which inflected positive during the back half of last year.  Today, I still see a positive trend. I would like the ETF to definitively climb above the 2021 high on better RSI momentum, however. We might see that happen soon – take a look at the volume profile at the bottom of the chart. There has been an increasing amount of shares traded in the past six months, a sign of possible institutional accumulation. And with a high amount of volume by price from $31 down to $18, there should be plenty of natural buyers on pullbacks. Overall, I see support in the mid-$20s and look for continued gains after last year’s upside breakout. URA: Bullish Long-Term Trend, Some Trouble At the Old Highs   StockCharts.com The Bottom Line  I am upgrading URA from a hold to a buy. Following positive technical developments and with a solid fundamental thesis (not to mention an attractive valuation), this thematic play appears strong heading into the rest of 2024.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.24.2","shortVersion":"4.24.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2438863229"}