Why I'm Not Chasing NuScale -- Here's What I'm Buying Instead
NuScale is still too speculative for me.
Overview
I have no interest in chasing NuScale (NYSE: SMR) by adding the once-high-flying small modular reactor (SMR) developer to my portfolio. It's just too speculative for me. Instead, I'm buying Brookfield Renewable (NYSE: BEPC)(NYSE: BEP), which has highly visible growth and underappreciated upside amid the global nuclear energy resurgence.
NuScale had been one of the hottest names in the energy sector, running up more than 400% at one point last year. The company's potentially transformative SMR technology could eventually help meet some of the world's booming power needs. However, reality has since set in that NuScale is a much longer-term story, causing the nuclear energy stock to crash by more than 80% from its peak. Despite its much lower current valuation, I still have no desire to chase NuScale, given all that Brookfield currently offers.
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Originally published at www.fool.com.