TLDR
- Jefferies ranked NexGen Energy, Cameco, and BWX Technologies among its top nuclear picks for near-term opportunity
- Cameco owns two of the world’s highest-producing uranium mines and holds a 49% stake in Westinghouse Electric
- BWX Technologies is the sole commercial provider of nuclear reactors and fuel for the U.S. Navy
- Westinghouse filed a confidential IPO application with the SEC on July 31, which could unlock value for Cameco
- BWX Technologies secured $1.4 billion in naval propulsion contracts in May 2026 and recently expanded its manufacturing capacity
Nuclear energy is back in focus. Jefferies has ranked its preferred stocks in the sector, pointing to uranium miners and nuclear-service companies with strong near-term positioning. Here is a closer look at three of the top picks.
NexGen Energy: High-Grade Uranium in Canada
NexGen Energy is Jefferies’ top-ranked uranium miner for the near term. The company is developing the Rook I uranium project in Canada’s Athabasca Basin, one of the highest-grade uranium regions in the world.
The company is not yet producing uranium, which is both a risk and an opportunity. Key catalysts include permitting, project financing, and construction progress at Rook I.
NexGen reported a smaller-than-expected loss in the second quarter of 2026. The company also confirmed it is in active discussions with BHP about the Rook I project, which could attract further strategic interest.
Western utilities are looking for secure, long-term uranium supply. NexGen’s Canadian location and high-grade resource put it in a strong position to meet that demand as the project moves closer to production.
The main risks are timing and cost. Construction delays, licensing issues, or higher build costs could push back the investment case. Investors are essentially betting on a future producer, not a current one.
Cameco: Integrated Uranium and Nuclear Services
Cameco ranks second on Jefferies’ list and offers broader exposure to the nuclear fuel cycle than a pure-play miner. Its Cigar Lake and McArthur River mines were the world’s two highest-producing uranium mines as of 2023.
Last year, Cameco mined 19 million pounds of uranium at Cigar Lake and 15 million pounds at McArthur River. These high-grade mines allow the company to produce at lower costs than most competitors.
Cameco also holds a 49% stake in Westinghouse Electric, which designs and services nuclear reactors globally. Westinghouse filed a confidential Form S-1 with the SEC on July 31 for a potential IPO, which would give Cameco a clearer public valuation of that asset.
Westinghouse currently has six AP1000 reactors in operation worldwide, with 14 under construction in China and five more under contract in Poland and Bulgaria. The U.S. Department of Energy committed $17.5 billion in loan facilities on June 24 to fund 10 large-scale AP1000 reactors in the United States.
Analysts project Cameco’s earnings per share to rise 69% in 2027 and another 26% in 2028. The company has over 28 million pounds of uranium deliveries locked in annually for the next five years.
BWX Technologies: The Navy’s Only Nuclear Supplier
BWX Technologies occupies a unique position in the nuclear sector. It is the only commercial company approved by the Nuclear Regulatory Commission to produce highly enriched uranium fuel for U.S. Navy submarines and ships.
The company has delivered 420 nuclear reactor cores to the U.S. Naval Nuclear Propulsion Program over seven decades. That track record and its regulatory approval give it a near-monopoly status in a critical defense supply chain.
On May 7, BWX Technologies secured naval propulsion contracts worth $1.4 billion. On July 6, it completed the acquisition of Precision Components Group, adding 500,000 square feet of manufacturing capacity.
The stock is currently trading about 33% below its 52-week high of $241, reached on April 16. Jefferies sees the company as a defense and nuclear manufacturing compounder with growth drivers in microreactors, advanced fuels, and small modular reactor components.
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