Uranium stocks are soaring. Here’s why and what’s next

Source: iStock Key Points

Uranium stocks are moving in a near vertical fashion, with several stocks up more than 40% in the past month

Analysts are bullish on the uranium sector, with some forecasting prices to reach US$90/lb in the next two years

Valuation are getting a little frothy, with Paladin Energy already priced-in for US$90/lb Uranium stocks have come roaring back to life as prices for the commodity hit US$70/lb in September, the highest level since the Fukushima disaster in 2011.Uranium officially entered into a bull market (well at least the textbook definition of a bull market) earlier this month after rallying to US$60/lb from US$50/lb at the beginning of the year.The revival has been more than a decade in the making, after the Fukushima Daiichi disaster of March 2011 triggered an abrupt drop in uranium consumption and changes in pro-nuclear energy policies. Uranium price chart (Source: TradingEconomics) […]

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