'We have reached a bottom': 5 ASX uranium shares leaping higher this week

ASX uranium stocks have enjoyed explosive share price growth over the past year.

| More on:
A miner stands in front oh an excavator at a mine site

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

ASX uranium shares are enjoying a strong run this week.

While that's par for the course over the past calendar year, uranium stocks came under selling pressure in February and into early March amid a 20% plus fall in uranium prices in just six weeks.

Of course, that retrace came on the back of uranium hitting 16-year highs in February.

While still below those highs, the price was back to US$88.50 per pound yesterday, up from US$83.10 a week earlier. The radioactive metal averaged $66.60 per pound in 2023, according to Bloomberg.

As you'd expect, the past week's price increase has rekindled investor interest in ASX uranium shares.

Here's how these five leading companies have performed since the opening bell on Monday:

  • Paladin Energy Ltd (ASX: PDN) shares are up 9.4%
  • Bannerman Energy Ltd (ASX: BMN) shares are up 19.1%
  • Deep Yellow Limited (ASX: DYL) shares are up 11.7%
  • Boss Energy Ltd (ASX: BOE) shares are up 2.2%
  • Alligator Energy Ltd (ASX: AGE) shares are up 5.8%

For some context, the All Ordinaries Index (ASX: XAO) is up 1.4% for the week at this same time.

And there could be more outsized gains ahead.

Rising demand and sticky supply

ASX uranium shares appear well placed, with global demand for uranium broadly forecast to outpace supply growth over the medium term.

According to Jonathan Hinze, president of UxC (quoted by Bloomberg), "We have reached a bottom. The fundamentals are still strong, with increased demand and supply that hasn't fully responded."

The fundamentals do indeed look strong.

In December, 22 nations at the COP28 climate conference – including Japan, the United States and France – said they would triple their nuclear power capacity by 2050. At the moment, India and China – the world's most populous nations – are leading the world in constructing new nuclear power plants.

Addressing the outlook for uranium demand, and by connection ASX uranium shares, Treva Klingbiel, president TradeTech, said:

We have a number of geopolitical factors that have a really significant influence on buyer behaviour, even though fundamentally nothing has changed.

Buyers can use the spot to tell them the sentiment of the day but must look at the long-term market to see that it is marching steadily up; it hasn't taken a hiccup at all.

How have ASX uranium shares performed over the full year?

The All Ords has delivered a bank deposit busting 11.3% in gains over the past 12 months. And that's not including the dividends some of those stocks will have paid shareholders.

But some investors will have done much better.

Here's how these five ASX uranium shares have performed over that same period:

  • Paladin shares have gained 132.5%
  • Bannerman shares have gained 166.9%
  • Deep Yellow shares have gained 150.0%
  • Boss Energy shares have gained 121.9%
  • Alligator Energy shares have gained 83.3%

As always, if you're looking at buying uranium stocks or any other ASX shares, be sure to do your own thorough research first.

If you're not comfortable with that or feeling time-poor, simply reach out for some expert advice.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Energy Shares

Happy man standing in front of an oil rig.
Energy Shares

Broker says Woodside share price weakness is a buy opportunity

Now could be a buying opportunity for investors according to Wilsons.

Read more »

2 workers standing in front of a wind farm giving a high five.
Energy Shares

Origin shares fall despite 'highly strategic' $300m renewable energy acquisition

Origin is taking a big step in its clean energy transition.

Read more »

Copal miner standing in front of coal.
Energy Shares

Should ASX investors buy the dip in Whitehaven stock?

We review the latest broker ratings on this ASX coal share.

Read more »

A young man stands facing the camera and scratching his head with the other hand held upwards wondering if he should buy Whitehaven Coal shares
Energy Shares

Are Paladin Energy shares really surging 900% today?

What's going on with this uranium stock today?

Read more »

sad looking petroleum worker standing next to oil drill
Energy Shares

Why is the Santos share price tanking on Tuesday?

Santos shares are missing out on today's market gains.

Read more »

A miner in visibility gear and hard hat looks seriously at an iPad device in a field where oil mining equipment is visible in the background.
Energy Shares

How ASX 200 energy stocks could soon enjoy US$100 oil prices

A range of factors are lining up to support higher oil prices, offering tailwinds for ASX 200 energy stocks.

Read more »

Man in yellow hard hat looks through binoculars as man in white hard hat stands behind him and points.
Energy Shares

Here is the earnings forecast to 2026 for Pilbara Minerals shares

Should investors be excited about the lithium stock’s outlook?

Read more »

Oil worker using a smartphone in front of an oil rig.
Share Fallers

Guess which ASX 200 energy share is imploding 18% today on cost blowouts

ASX 200 investors are rushing to hit the sell button on this popular energy stock on Monday.

Read more »