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Oklo Stock Soars 127% in 3 Months: Should You Buy Now or Wait?

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Key Takeaways

  • OKLO stock soared 127.3% in 3 months, far outpacing its sector, industry and the S&P 500.
  • Surge driven by DLA project award, NRC review progress and global MOU with Korea Hydro.
  • Earnings estimates are declining and valuation remains steep at 32.90X P/B versus 5.1X industry average.

Shares of Oklo Inc. (OKLO - Free Report) have soared an impressive 127.3% in the past three months, outperforming the Zacks Alternative-Energy industry’s growth of 16.7% and the broader Zacks Oils-Energy sector’s return of 0.6%. It has also outpaced the S&P 500’s rise of 5.3% in the same period.

Zacks Investment Research
Image Source: Zacks Investment Research


A similar stellar performance has been delivered by other industry players, such as Constellation Energy Corporation (CEG - Free Report) and GEV Vernova (GEV - Free Report) , whose shares have surged 35.8% and 44.1%, respectively, in the past three months.

With OKLO’s robust performance on the bourses, many investors might feel lured to add this stock to their portfolio. However, before making any quick decisions, it is important to understand what led to the stock’s recent growth, whether it can maintain this momentum and if not, then what are the risks that pose a threat. The idea is to help investors make a more insightful decision.

Key Drivers Behind Oklo’s Surge

OKLO’s latest stellar performance seems to have been influenced by strategic partnerships, regulatory progress and important project awards.

Notably, in June 2025, Oklo received a Notice of Intent to Award from the Defense Logistics Agency Energy to deploy its Aurora powerhouse at Alaska’s Eielson Air Force Base, marking a key step in the Department of the Air Force’s microreactor pilot program. If finalized, this long-term agreement would allow OKLO to design, build and operate the plant, providing clean power for critical defense infrastructure.

In the same month, it announced that the U.S. Nuclear Regulatory Commission (NRC) had begun reviewing its Licensed Operator Topical Report, marking progress in OKLO’s regulatory plans. This report supports Oklo’s Combined License Application, which, once approved, will allow it to operate its Aurora powerhouses.

In May, the company signed a memorandum of understanding (MOU) with Korea Hydro & Nuclear Power to collaborate on the development and global deployment of Oklo’s advanced nuclear technology. This partnership aims to jointly advance the design and verification of Oklo’s Aurora powerhouse and cooperate on early project development efforts. This collaboration is expected to strengthen OKLO’s position in the global nuclear energy market.

Will Oklo Stock Continue Its Momentum?

Amid steadily rising global electricity demand, the United States plays a leading role in nuclear power, accounting for roughly 30% of global nuclear electricity generation, per the latest report from the World Nuclear Association. This leadership supports strong growth prospects for U.S.-based nuclear-focused companies like OKLO, which is developing next-generation fast-fission power plants, known as “powerhouses.”

Its Aurora powerhouse series is designed to generate between 15 and 50 megawatts electric (MWe) using a mix of recycled and fresh nuclear fuel, with potential to scale up to 100 MWe.

In May 2025, Oklo completed borehole drilling at the Idaho National Laboratory for its first Aurora Powerhouse. Such notable strides position OKLO for long-term growth in the nuclear power generation sector.

However, Oklo is still in the development phase and has yet to generate any revenues. With its first powerhouse expected to go online in 2027, strong top-line results are unlikely in the short term.

At the same time, the company continues to face high operating expenses as it works to bring its technology to market, putting pressure on its bottom line. As a result, the likelihood of near-term profits remains low, which may concern investors.

Now let’s take a quick sneak peek at its near-term earnings estimates to see if that reflect a similar trend.

OKLO’s Estimates Reflect Mixed Movement

The Zacks Consensus Estimate for OKLO’s 2025 earnings indicates a year-over-year improvement, while the same for 2026 implies a deterioration.

Zacks Investment Research
Image Source: Zacks Investment Research

On the other hand, the Zacks Consensus Estimate for OKLO’s 2025 and 2026 earnings per share has moved down considerably in the past 60 days. These downward revisions indicate analysts’ decreasing confidence in the stock’s earnings-generating capabilities.

Zacks Investment Research
Image Source: Zacks Investment Research

OKLO Shares Trading at a Premium

OKLO shares are expensive on a relative basis, with its trailing 12-month Price/Book (P/B TTM) being 32.90X compared with its industry average of 5.1X.

Zacks Investment Research
Image Source: Zacks Investment Research

Its industry peers, Constellation Energy Corporation and GEV Vernova, are also trading at a premium to the industry average. CEG is trading at a P/B TTM of 6.98X, while GEV is trading at a P/B TTM of 13.50X.

Conclusion

Investors interested in OKLO should wait for a better entry point, considering its premium valuation and declining earnings estimates. However, those who already own this Zacks Rank #3 (Hold) stock may continue to do so, taking into account its robust performance on the bourses, benefits of recent collaborations and regulatory progress.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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