This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Nuclear Energy Is In Decline But 3 Industry Stocks Have Strong Profitability

Stocks in this article: PNW SO WR

Mary-Lynn Cesar, Kapitall: The World Nuclear Association ranks the United States as the global leader in nuclear power production. According to the WNA’s May profile of nuclear power in the United States, the country is responsible for 30% of total global nuclear generation of electricity. Domestically, the WNA states that nuclear power generated 19% of the United States’ electricity in 2011 with coal and gas generating 43% and 24%, respectively.

[Read more from Kapitall Wire: Spotlight on Defense Contractors, 10 Undervalued Stocks to Watch]

However, Bloomberg reports that the 19% share is the industry’s lowest since 1998, which – combined with the closing of four reactors thus far this year – supports claims of its decline. For the past 30 years, the nuclear industry has faced a lull in reactor construction, and although plans are underway for new units, the WNA notes that low natural gas prices have placed the future of many of those projects in doubt.

Meanwhile construction is currently underway for four nuclear reactors: Vogtle 3 and 4 in Georgia and V.C. Summer 2 and 3 in South Carolina. The Vogtle plant is noteworthy for its approach to design, construction, and regulation, which the industry hopes will result in a cheaper, more efficient way of building reactors. A New York Times article covering the Vogtle reactor points out that the projects’ success will be instrumental in determining whether the cost of constructing a new reactor can be justified given the low prices of natural gas.

Business Section: Investing Ideas

As nuclear reactors continue to age, energy companies are faced with expensive renovations and construction as well as the option of shutting down operations. Given the expenses involved with these decisions, we decided to turn our focus to domestic energy companies that appear to be managing their costs well.

To screen for this, we looked for domestic energy firms more profitable than the industry average on the basis of trailing twelve month (TTM) gross, operating and pre-tax margins.

TTM Gross margin is the percentage of revenue remaining after a company has paid its production expenses. TTM Operating margin, a measure of operating efficiency, refers to the percentage of revenue left after all operating expenses have been paid. TTM Pretax margin is a company’s pre-tax earnings, and the higher the pretax margin, the more profitable the company.

After running the screen, we were left with three companies involved with nuclear energy.

Interactive chart: Use Kapitall's Compar-o-Matic to see changes in average analyst ratings for the stocks listed below. 

Do you think these companies are well equipped to overcome the challenges facing the nuclear energy sector? Use this list as a starting point for your own analysis. 

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs