5 Nuclear Stocks to Watch as Industry Gains Momentum, According to Mizuho

Investing.com -- The nuclear power sector is experiencing renewed interest as data centers seek net-zero carbon sources and traditional gas generation faces supply chain pressures. While new nuclear projects in the US may be over a decade away, supply chain orders could begin within 2-3 years. Mizuho has ranked the top nuclear stocks positioned to benefit from this resurgence.

GE Vernova (GEV) leads Mizuho’s nuclear reactor ranking, with its BWRx reactor screening at the top of their list. The updated ranking accounts for recent Trump executive orders accelerating nuclear development and considers factors including licensing progress, customer contracts, financing, supply chain readiness, fuel availability, and time to market. Despite economic and capital expenditure uncertainties for these new reactors, GEV maintains its advantage over traditional options like Westinghouse AP1000.

GE Vernova announced it has secured its first onshore wind repower upgrade agreement outside the United States with Taiwan Power Company. Separately, analysts at Jefferies, Mizuho, and TD Cowen have lowered their price targets for the company.

Emerson Electric (EMR) emerges as Mizuho’s top pick among nuclear-exposed companies. EMR dominates nuclear automation with approximately 90% installed base share in global reactors for controls, instrumentation, and valves. The company is well-positioned to capitalize on growing interest in both Small Modular Reactors (SMRs) and AP1000 reactors, though these projects will require government or tech industry backing to mitigate cost overrun risks.

Emerson Electric introduced new fiscal year 2028 financial targets, which include a plan to return $10 billion to shareholders. Following the company’s investor event, Wolfe Research raised its price target on the shares.

NextEra Energy (NEE) stands to benefit from nuclear restart initiatives. The company plans to restart the 601 MW Duane Arnold nuclear plant in early 2029, pending regulatory approvals. Mizuho notes that NEE has neutral exposure rating in the nuclear sector but remains positioned to capitalize on the industry’s resurgence.

In a recent development, NextEra Energy’s subsidiary, Florida Power & Light, received approval from the Florida Public Service Commission for a rate settlement agreement that will set new base rates from January 2026 through at least December 2029.

Constellation Energy (CEG) is advancing with its previously announced restart of the Crane Energy Center (formerly Three Mile Island). While Mizuho assigns CEG a neutral rating for nuclear exposure, the company’s existing nuclear assets provide a foundation for growth as the industry expands.

Constellation Energy secured a $1 billion loan from the U.S. Department of Energy to support its Crane Clean Energy Center. KeyBanc also reaffirmed the company as its top pick in the sector.

Flowserve Corporation (FLS) has significant presence in the global nuclear infrastructure. According to Mizuho, 75% of the 416 nuclear reactors operating worldwide today contain FLS content. This established footprint positions Flowserve to benefit from both maintenance of existing facilities and construction of new nuclear power plants.

Flowserve Corporation reported third-quarter earnings that surpassed analyst estimates, with bookings exceeding $1.2 billion. Following the results, BofA Securities downgraded the stock to Neutral, while Stifel and TD Cowen raised their respective price targets.

Utilities and independent power producers are cautious about protecting shareholders from potential cost overruns and regulatory challenges that plagued previous nuclear projects. Both state or federal government and major technology companies may need to provide financial backstops for new nuclear initiatives.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.