3 Best Uranium Stocks To Buy

The global demand for uranium is expected to remain constant as developing and emerging countries turn to nuclear power plants for reliable electricity generation. A total of 181 million pounds of uranium was used in 2020. While that number is expected to drop to 178 million pounds in 2021, it is expected to reach 200 million pounds by 2026.

Here's a look at three of the top companies mining uranium:

CAMECO CORPORATION (NYSE: CCJ; TSX: CCO)

Cameco, based in Saskatchewan, Canada, is the second-largest uranium mining company in the world, trailing only Kazatomprom, which is based in Kazakhstan. Cameco, which is the largest publicly traded uranium miner, accounts for 18% of world production. Kazatomprom accounts for 21%. Cameco's primary source of uranium is the Cigar Lake mine in Saskatchewan, which is the largest single uranium mine in the world. It also owns uranium mines in Wyoming, Nebraska, and Kazakhstan.

Cameco stock has returned 103% to investors within the past year. In the first quarter of 2021, Cameco lost seven cents per share, which beat market predictions. 1Q21 revenue was down 16% year-over-year.

NEXGEN ENERGY LTD (NYSE: NXE)

NexGen owns over 516,000 acres of land in Saskatchewan, in an area called the Athabasca basin. This land is near some of the world's largest known deposits of uranium. NexGen is in the process of raising capital to fund mining in the Athabasca basin.

NexGen has returned 222% to investors in the past 12 months. The company is seen as a long-term investment.

ENERGY FUELS INC (NYSE American: UUUU; TSX: EFR)

Energy Fuels Inc, based in Colorado, is the largest US producer of uranium, with mines in Wyoming, Texas, and Utah. Energy Fuels posted a loss in 1Q21, likely because of reduced mining caused by a drop in uranium prices. The company has said it will increase mining volume as uranium prices increase.

In addition to uranium, Energy Fuels is the largest US producer of vanadium, which is used in the aerospace, chemical, and steel industries. Vanadium could also play a major role in batteries used to store power generated by renewable energy sources.

Energy Fuels stock has returned over 300% to investors in the past year.