BWX Technologies Already Builds Reactors for the Navy. Why Is It Still the Cheapest Nuclear Stock?
BWX Technologies is trading at a discount compared to its peers despite its military moat.
Overview
There are nuclear stocks trading at lower valuations than BWX Technologies (NYSE: BWXT), including Constellation (NASDAQ: CEG) and Duke Energy (NYSE: DUK), large utility companies that use nuclear power, but compared with its peers, BWX stock is still a steal. The stock is down more than 7% so far this year.
Hot nuclear stocks GE Vernova (NYSE: GEV), NuScale Power (NYSE: SMR), Oklo (NYSE: OKLO), Cameco (NYSE: CCJ), and Uranium Energy (NYSEMKT: UEC) all trade at higher valuations than BWX whether you look at trailing price-to-earnings (P/E), forward P/E, or price-to-sales (P/S) ratio.
Details
BWX may not be the flavor of the month, but that presents an opportunity for investors. The stock benefits from a near-sole-source monopoly supplying nuclear reactors and high-assay enriched fuel for the U.S. Navy's submarine and aircraft carrier fleet. Here are three reasons to buy this stock now.
Source
Originally published at www.fool.com.