Deep Yellow Ltd (ASX: DYL) shares are edging lower today, but still outperforming the benchmark index.
Shares in the S&P/ASX 200 Index (ASX: XJO) uranium stock closed yesterday trading for $1.835 cents. In afternoon trade on Tuesday, shares are changing hands for $1.830 apiece, down 0.3%.
For some context, the ASX 200 is down 0.7% at this same time.
Taking a step back, Deep Yellow shares have gained 54.8% over the past 12 months, smashing the 6.0% one-year gains posted by the ASX 200.
And looking ahead, Fairmont Equities' Michael Gable expects the ASX 200 uranium stock is well-placed to deliver more outperformance (courtesy of The Bull).
Here's why.
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Should you buy Deep Yellow shares today?
"The uranium sector remains promising because demand should continue to outpace supply for the next few years," said Gable, who has a buy recommendation on Deep Yellow shares.
"Although the uranium price has edged higher in the past several months, I'm expecting a much bigger move to occur soon when utilities return to contract for future supplies," Gable noted.
On Monday, uranium futures in the United States were swapping hands for just over US$86 per pound. That's up from US$76 per pound in December, and up from US$70 per pound this time last year.
And amid expectations of further increases in global uranium prices, Gable thinks Deep Yellow stock looks bargain priced.
"This uranium developer, based in Namibia, appears cheap at these levels and it's highly leveraged to any increase in the underlying uranium price," he concluded.
What's the latest from the ASX 200 uranium stock?
Deep Yellow shares closed up 3.9% on 28 April following the release of the company's March quarter update.
Investors responded enthusiastically to the progress Deep Yellow has been making across its major projects.
The miner reported that, as at 31 March, detailed engineering had progressed to 68% completion, with 91% of the bulk earthworks finished at its Tumas Project, located in Namibia.
Commenting on the results, Deep Yellow CEO Greg Field said:
Deep Yellow entered the March 2026 quarter with clear momentum across the business, underpinned by continued advancement of our flagship Tumas development project and a disciplined focus on creating long-term shareholder value.
As for what's next for the strengthening uranium price that's helped boost Deep Yellow shares, the company noted:
Positive market forces including persistent increases in anticipated new builds of both large reactors (1,000 MWe and larger) as well as Small Modular Reactor (SMR) technology, coupled with rising awareness of increasingly probable future uranium supply shortages, have served to underpin the longer-term uranium market.
Looking forward, increasing commitments for future uranium deliveries are expected to accelerate as utilities enter the long-term market to satisfy substantial uncovered uranium requirements.
