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NuScale Power stock soars to all-time high of $16.91

Published 10/16/2024, 10:16 PM
SMR
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NuScale Power Corporation (SMR), a company specializing in small modular reactors, has reached an all-time high of $16.91 USD, marking a significant milestone in its stock performance. This peak reflects a robust growth trajectory for the company, which has seen an impressive 183.42% increase over the past year. Investors attribute this surge to the growing interest in clean energy solutions and NuScale's promising advancements in the modular nuclear reactor space, positioning it as a potential leader in the industry's future.

In other recent news, NuScale Power Corp reported a net loss of $74.4 million in Q2 2024, while maintaining a strong cash position of $136 million. The company also entered a significant contract with Fluor (NYSE:FLR) Transworld Services Inc. for the Front-End Engineering and Design (FEED) Services related to NuScale's small modular reactor project in Romania. This development marks a crucial step in NuScale's international expansion and its role in the global nuclear energy sector.

Analysts have weighed in on NuScale Power's prospects. Craig-Hallum initiated coverage on the company, assigning it a Buy rating, while CLSA also initiated coverage with an Outperform rating. TD Cowen maintained its Buy rating on NuScale, emphasizing the company's ongoing cash consumption and the expected reduction in the pace of cash usage due to revenue from the RoPower project.

NuScale Power's small modular reactors are designed to offer a more flexible and scalable alternative to traditional nuclear power plants, which could be crucial in meeting diverse energy needs and carbon reduction goals. The financial details of the agreement with Fluor Transworld Services Inc. were not disclosed. These are the recent developments in the company's journey towards revolutionizing the nuclear power industry with its small modular reactors.

InvestingPro Insights

NuScale Power Corporation's (SMR) recent stock performance aligns with several key metrics and insights from InvestingPro. The company has demonstrated a significant return over the last week, with a 15.13% price increase, and an even more impressive 40.7% gain over the past month. This short-term momentum is part of a larger trend, as SMR has seen a remarkable 174.04% price increase over the last six months and a 131.63% return over the past year.

Despite these strong returns, InvestingPro Tips highlight that analysts anticipate a sales decline in the current year, and the company is not expected to be profitable this year. This contrast between stock performance and financial expectations underscores the speculative nature of investments in emerging clean energy technologies.

It's worth noting that SMR holds more cash than debt on its balance sheet, which could provide financial flexibility as the company navigates its growth phase. Additionally, the stock generally trades with high price volatility, which may appeal to risk-tolerant investors looking for potential high-growth opportunities in the clean energy sector.

For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for NuScale Power Corporation, providing a deeper understanding of the company's financial health and market position.

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

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