With central banks keeping policy tight to contain broad inflation in areas like transport and energy, investors are paying closer attention to sources of stable and efficient power. Nuclear energy stocks sit at the crossroads of reliability and long term electricity demand, which creates a potential opening for patient capital. This article highlights three stocks from our Nuclear Energy Stocks screener that stand out on this theme.

The three nuclear energy stocks covered below are only a starting sample, and the full screen on Simply Wall St surfaced 32 more companies with narratives that may be just as compelling but are not covered in this article.

To go deeper into this investing idea, head straight into the Nuclear Energy Stocks screener to identify, filter and analyze the nuclear energy stocks that best fit your own conviction and risk profile.

Constellation Energy (CEG)

Constellation Energy is a large US power producer that sells electricity, natural gas, and low carbon energy solutions across regions including the Mid Atlantic, Midwest, New York, ERCOT, and other power markets. The business is heavily driven by its Generation segment, which produced about US$31.3b in revenue, reflecting its focus on nuclear, wind, solar, gas, and hydro assets. The company has a market cap of roughly US$98.6b, putting it firmly in mega cap territory.

Constellation Energy sits at the center of two important themes for nuclear investors. It has long term contracts for carbon free power with hyperscalers and corporates, a growing nuclear and gas fleet after the Calpine deal, and a pipeline of projects like the Crane restart and potential SMR opportunities. At the same time, investors need to weigh risks around nuclear regulation, customer concentration, and heavy reliance on external funding. For those tracking potential providers of 24/7 power to data centers and large users, this is one stock to watch closely.

Constellation Energy is becoming a go to partner for always on power for data centers and corporates, but the real story sits in its contracts, funding needs, and nuclear exposure. Unpack the 4 key rewards and 2 important warning signs (1 is major!)

Build your own shortlist of 24/7 power providers

Constellation Energy and the two other stocks in this article all came from a single Simply Wall St screener, but the real edge is in building filters around the metrics that matter most to you. Use our flexible Screener to mix valuation, growth, quality and risk checks into your own watchlist, or jump straight into any of our curated Investing Ideas.

Duke Energy (DUK)

Duke Energy is one of the largest regulated utilities in the US, supplying electricity and natural gas to customers across the Southeast and Midwest. Most of its US$36.2b in revenue comes from the Electric Utilities and Infrastructure segment at about US$30.2b, with a further US$3.2b from Gas Utilities and Infrastructure and small contributions from other items and internal adjustments. The company has a market cap of roughly US$96.1b, making it a major player in US power and gas infrastructure.

Investors watching the build out of data centers and nuclear capacity may find Duke Energy hard to ignore. The company reports long term agreements to serve data centers, a large regulated nuclear fleet and heavy spending on grid upgrades and renewables. These factors are helping support steady earnings and a 3.45% dividend yield. At the same time, high capital needs, reliance on external borrowing and a dividend that is not well covered by free cash flow keep pressure on the balance sheet. The mix of solid regulatory backing, moderate earnings growth and rising capital demands means there is more to this utility story than a simple bond like income play.

Duke Energy’s regulated earnings and data center exposure often grab attention, yet the real story lies in its funding needs and dividend coverage. Get the full context in the Duke Energy financial health report.

Fluor (FLR)

Fluor is a global engineering and construction company that designs, builds, and manages large projects across industries such as advanced manufacturing, energy, mining, infrastructure, and government services. Most of its US$15.5b revenue comes from Urban Solutions at about US$10.3b, with Energy Solutions contributing roughly US$2.6b and Mission Solutions another US$2.6b. The company has a market cap of about US$7.1b, putting it in the mid cap range for US industrial and infrastructure stocks.

Investors looking at nuclear and energy infrastructure may find Fluor interesting because it sits on a large backlog across LNG, mining, petrochemicals, data center related power, and government nuclear work. Analysts expect earnings and return on equity to improve from loss making levels toward profitability over the next few years. At the same time, project delays, foreign exchange hits and contract disputes have already affected margins and cash flow. The key question is whether recent contract wins and index inclusion, plus a share price that screens as cheap on revenue, are enough to compensate for that execution and funding risk.

Fluor’s project backlog and shift toward profitability have many investors rethinking its potential. The real question is how that story lines up with the analyst forecasts for Fluor and what might be hiding in the fine print.

Curious About Fresh Investing Alternatives

New themes can build momentum fast, then slip once the crowd finally catches on. Scan these fresh stock ideas while they are still under the radar for now and consider how they might fit your objectives.

• Target reliable income potential before yields change by checking out a curated 9 dividend fortresses that screens for both staying power and generous payouts.
• Explore the next wave of automation opportunities by reviewing a hand picked 39 robotics and automation stocks that focuses on real businesses tied to long term efficiency gains.
• Stay informed on the next infrastructure upgrade cycle with a focused 36 power grid technology and infrastructure stocks that filters for companies linked to transmission, stability and grid modernization trends.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.