In response to Russia’s inability to supply Europe with gas, European policymakers are revisiting the possibility of nuclear power to meet their energy needs. This summer, EU lawmakers voted to adopt nuclear energy as a clean and green energy source. In February 2022, France announced plans for up to 14 new nuclear reactors by 2050 in an effort to reduce its dependence on fossil fuels.
According to a report by Report Linker, the global nuclear electricity market to grow to $179.89 billion in 2022, from $166.13 billion in 2021, at a CAGR of 8.3%. By 2026, the global nuclear electricity market is expected to hit a valuation of $239.17 billion in 2026, registering a CAGR of 7.4%. Today we’re highlighting a provider of essential nuclear power components that’s been gaining momentum amid these developments.
Leading manufacturer and supplier of nuclear components, BWX Technologies, Inc. (BWXT) stands to benefit from nuclear power’s expansion. The company recently announced that it had been awarded a contract by the U.S. Department of Defense Strategic Capabilities Office to build the first advanced nuclear microreactor in the United States.
On August 8, BWX reported Q2 earnings per share of $0.82 and beat estimates by $0.07. The company’s revenue amounted to $554 million, up 9.7% year over year, and outperformed Wall Street expectations by $9.87 million. BWXT looks like a bargain at just 15.05 price-to-earnings. The stock has gained 7.2% so far this year and is offering a forward dividend yield of 1.71%, which the company supports with free cash flows of $64 million. The current consensus among seven analysts offering recommendations is to Buy BWXT shares. A median price target of $65 represents a 25% increase from the current level.
Should you invest in BWX Technoligies right now?
Before you consider buying BWX Technoligies, you'll want to see this.
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But you have to act now, because a catalyst coming in a few weeks is set to take this company mainstream... And by then, it could be too late.
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