Investors may want to consider uranium stocks.
Just days ago, related stocks were nuked after CNN said the U.S. was looking into reports of a leak at a Chinese nuclear power plant. However, it appears investors overreacted.
“Monday’s drop looks like an outsize reaction for several reasons,” noted The Wall Street Journal’s Jinjoo Lee . “Uranium mining companies tend to operate on multiyear supply contracts with utilities, so there is little risk that a nuclear power plant would immediately pull back buying from these mining companies.”
China denied a leak, but did admit fuel rods had been damaged in a reactor.There are other reasons to keep your eyes on these uranium stocks. For example, oversold uranium stocks could get a boost from President Biden’s push for a potential uranium reserve. Plus, global demand for uranium was close to 180 million pounds in 2020. Market experts believe that this figure is set to […]
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