05Apr10:49 amEST

Uranium is the New Solar

Since its inception in late-2010, the uranium ETF (URA, below on its monthly chart) has been a pretty good counter to the, "everything is in a bubble" crowd. You are talking about a decade worth of dead money and disappointing price action, even with uranium and nuclear energy staring us in the face as a clean, abundant, and efficient alternative, not to mention domestic in many cases.

Even with the sector improving in recent months, many stocks like CCJ (a larger cap uranium miner) are still trading where they were back in 2005. 

While this lack of progress is certainly demoralizing for uranium bulls, another way to look at it is that if they awaken here, the sky is the limit in the coming quarters. This holds particularly true if the rotation into materials, commodities, and energy/industrials we have seen of late dovetails with the general growth-to-value vibe for much of 2021, heretofore 

Beyond that, uranium is noticeably outperforming solar stocks, perhaps soon to unseat solar as the first alternative energy source traders think of.

Overall, if the oil bull run continues it is hard not to see alternatives thriving. And uranium, being the often-overlooked sector that it is, could easily continue to rally under the cover of more prominent stocks and sectors getting the usual attention. In my estimation, this is an even more bullish factor for the group, as it may take a good while for the trade to become crowded. DNN URG UUUU are some other, albeit riskier, names of note in the space.

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