Uranium ETF, IBD Stock Of TheDay, Flashes Buy Signal Amid...

Uranium ETF, IBD Stock Of TheDay, Flashes Buy Signal Amid Exploding Nuclear Energy Demand

URNM

$ 44.03

$0.26 0.58% 91%

IBD StockAnalysis

• Rebounding from 10-week line
• Relative strength line strong

Composite Rating

Sprott Uranium Miners ETF (URNM) is the IBD Stock Of The Day Thursday. URNM stock is flashing a buy signal and was added to SwingTrader on Thursday.

Institutional investors off andlook to the 50-day line as a reference

01:21

Sprott Uranium Miners offers exposure to a range ofuranium production, mining, exploration and development companies. Sprott toutsthe fund as a pure-play uranium ETF focused on physical uranium and miners. Itwas reorganized from the North Shore Global Uranium Mining ETF to SprottUranium Miners in late April 2022 but maintained the same ticker and strategy.

The uranium ETF has $1.08 billion assets undermanagement as of Oct. 17, according to FactSet data. Sprott lists $1.34 billionin total net assets as of Oct. 18.

Its top holdings include Cameco (CCJ), National Atomic, Sprott Physical Uranium Trust, NexGen Energy (NXE) and Denison Mines ( DNN).

Sprott Uranium Miners ETF has a 0.83% expense ratioas of Oct. 18.

URNM has soared 275.5% since its inception on Dec.3, 2019, according to Sprott data.

UraniumDemand

The International Atomic Energy Agency (IAEA)expects demand for uranium to explode over the next few years. Roughly 60,000tons of uranium were required to fuel the world's 410 nuclear power plants,according to a 2022 publication issued by the IAEA and the Nuclear EnergyAgency of the Organization for Economic Cooperation and Development.

The agencies forecast demand to rise as high as100,000 tons per year by 2040 as countries turn to nuclear power to addressclimate change and sustainable development, the IAEA wrote in a May release.And the IAEA projects nuclear power generating capacity could more than doubleby 2050.

Meanwhile, uranium spot prices rocketed nearly 144%between January 2021 and Sept. 30, 2023 according to the most recent Camecodata. Spot uranium prices are up more than 41% this year and hovering around$71.58 per pound.

URNM StockPerformance

URNM stock is pushing back above its 21-day moving average and 10-day line to break a sharp downtrend that started in late September. On a weekly chart, the uranium ETF is bouncing from its 10-week line.

Investors could view this pullback as a handle to a base going back to late 2021.

SwingTrader puts the current buy zone between 43.83 and 44.71.

URNM stock's relative strength line is on the upswing and it has a 96 RS Rating out of a best-possible 99. The solid RS Rating means it outperformed 96% of all stocks in the IBD database over the past year.

URNM stock rallied nearly 39% in 2023.