by Jared Woodard, Investment and ETF Strategist, BofA Securities
Jared Woodard, Investment and ETF Strategist at BofA Securities, is highly bullish on what he calls "the third bull market for uranium" and nuclear power, citing a visible shortage due to a decade of underinvestment, with an anticipated 20-40% upside. He notes the rising global demand, with 60 new reactors being constructed and an additional 100 approved, and identifies potential market drivers such as resource nationalism, energy security, war, and inflation. Woodard outlines five ways to invest in the nuclear supply chain, including disciplined miner Cameco, energy companies Constellation Energy and Vistra, and BWX Technologies, the sole provider for US Navy nuclear submarines and carriers. He also suggests the URA ETF for diversified access to the nuclear sector. Woodard points to two short-term catalysts, potential sanctions on Russian uranium and the possible adoption of nuclear power to meet Net Zero deadlines, that aren't currently priced into the market. He emphasizes that nuclear power is the most economical clean energy source on an all-in basis and offers the highest return on initial energy investment.
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