Paladin Energy Ltd (ASX: PDN) shares are storming higher today.
Shares in the S&P/ASX 200 Index (ASX: XJO) uranium stock closed yesterday trading for $7.45. In early afternoon trade on Tuesday, shares are changing hands for $7.76 apiece, up 4.2%.
For some context, the ASX 200 is down 0.2% at this same time.
As you may know, Paladin Energy shares have been smoking hot since the stock plumbed a four-year closing low of $3.98 on 22 April.
That means ASX investors who channelled their inner Warren Buffett to be greedy when others were fearful and bought shares on 22 April will now be sitting on gains of 95%.
But according to Ord Minnett's Tony Paterno, those rapid gains may have come faster than they were fundamentally due (courtesy of The Bull).
Image source: Getty Images
Should you buy Paladin Energy shares today?
"This uranium producer owns 75% of the Langer Heinrich mine in Namibia," said Paterno, who has a sell recommendation on Paladin Energy shares. "It also owns uranium exploration and development assets in Australia and Canada."
Paterno noted the all-time high uranium production Paladin Energy reported for Q1 FY 2026.
"The company delivered record production in the September quarter, but sales volumes fell on the previous quarter and prior corresponding period," he said.
But with shares having raced higher since April, he recommends taking profits now.
"Despite a decent result, PDN's share price recently doubled in the past six months and has outpaced its fundamentals," Paterno concluded.
What's been sending the ASX 200 uranium stock leaping higher?
Paladin Energy shares closed down 0.4% on 13 November following the release of the company's first-quarter results.
For the September quarter, Paladin reported revenue of US$35.97 million, down 18% year on year. However, the uranium miner's net loss after tax declined to US$9.93 million from US$10.40 million.
And the company's gross quarterly profit of US$7.89 million almost doubled from the prior corresponding period.
Atop its own operational performance, Paladin Energy shares have joined the broader rally among uranium stocks over the past half year.
This has been driven by a rapid increase in planned nuclear power generation, spearheaded this year by the United States.
As we reported last Thursday, the US Department of Energy announced that it will loan US$1 billion to Constellation Energy to help fund the restart of the Three Mile Island nuclear power facility. Microsoft Corp (NASDAQ: MSFT) has contracted the facility to provide the surging power demands for its expanding AI data centres.
Last week, Paladin Energy shares also enjoyed a big boost following news that the US plans to purchase up to 10 new large-scale nuclear reactors.
