Energy stocks, particularly those involved in nuclear technology, are experiencing a boost in 2025, driven by executive actions aimed at strengthening the energy sector. This has sparked increased investor interest in companies like Oklo, Centrus Energy, and BWX Technologies.
Centrus Energy (LEU) has seen its stock price climb, supported by robust first-quarter earnings and positive analyst ratings, targeting a price of $145. The company's involvement in High Assay Low-Enriched Uranium (HALEU) production is considered vital for the development of next-generation reactors. As of March 31, 2025, Centrus had delivered approximately 670 kilograms of HALEU UF6 to the DOE. The Phase 2 of the HALEU Operation Contract has been extended to June 30, 2025.
BWX Technologies (BWXT) is also benefiting from positive momentum, fueled by recent contract acquisitions, including a $2.1 billion contract by the U.S. Navy for the procurement of nuclear reactor components, and strong Q1 2025 financial results. Analysts have adjusted the price target while maintaining a buy rating. This contract, announced on February 19, 2025, covers the manufacturing of reactor components for Columbia and Virginia class submarines, as well as Ford class aircraft carriers.
Oklo (OKLO) has also experienced gains, with analysts raising its price target to $55, highlighting the company's strategic position in the energy sector and the growth potential in the small modular reactor (SMR) space. These executive actions, initiated in May 2025, aim to increase energy output by 2050 through reforms and measures designed to accelerate reactor development, streamline regulatory processes, and stimulate domestic production. Oklo is working towards submitting a license application in 2025 and hopes for a first reactor deployment by late 2027.