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NNE Outperforms Industry in a Year: Buy, Hold or Sell the Stock?
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Key Takeaways
NNE's shares have outpaced industry and sector performance over the past year.
Demand from AI data centers and reshoring of industries supports NNE's portable microreactor push.
NNE advances tech, partnerships and R&D while navigating early-stage, pre-revenue challenges.
Shares of NANO Nuclear Energy Inc. (NNE - Free Report) have gained 34.4% in the last year compared with the Zacks Alternative Energy - Other industry’s rise of 28.9%. The company has also outperformed the Zacks Oil-Energy sector and the Zacks S&P 500 composite’s return in the same time frame.
NANO Nuclear Energy will benefit from the immense increase in 24x7 clean energy demand from the AI-driven data centers, an increase in the usage of electric vehicles and a bottleneck in the development of large transmission and development projects will further promote its portable microreactor. NNE’s ability to quickly deploy reactors and provide power solutions to customers in remote locations acts in its favor.
Another company, Bloom Energy Corporation (BE - Free Report) , operating in the same space, provides clean energy solutions to customers through its Energy Server platform, which provides efficient, clean and dependable power solutions for both commercial and utility customers. Bloom Energy’s shares have registered a gain of 384% in the last year.
Price Performance (One year)
Image Source: Zacks Investment Research
Should investors consider adding NNE to their portfolio only based on positive price movements? Let us delve deeper and find out the factors that can help investors decide whether it is a good entry point to add NNE stock to their portfolio.
Factors Acting as a Tailwind for NNE Stock
Demand for reliable 24x7 clean energy is rising in the United States. A massive increase in demand is expected from the AI-driven data centers, usage of more electric vehicles, the reshoring of some industries and cryptocurrency mining. NANO Nuclear Energy’s microreactor can quickly provide reliable clean energy to the various industries and has a competitive time and cost advantage over large-scale reactors.
The company has acquired and successfully validated its proprietary Annular Linear Induction Pump (ALIP) technology — an advanced electromagnetic cooling system engineered to boost reactor reliability and efficiency, especially in remote or hard-to-maintain environments such as space. This unique technology gives NNE a competitive edge, enabling it to deploy microreactors in challenging locations for customers.
The company is strengthening its position through strategic partnerships and increased investment in research and development. NANO Nuclear Energy is working with the University of Illinois Urbana-Champaign on its KRONOS project and establishing a manufacturing and R&D facility in Illinois, supported by state tax incentives.
The company enjoys the benefit of faster deployment of energy solutions to customers compared with traditional large reactor operators. NNE’s microreactors feature compact, modular designs, which can enable quicker construction and more efficient deployment.
Transmission and distribution lines are critical for delivering large amounts of electricity from generation sites to end users. However, ongoing delays and bottlenecks in major transmission and distribution projects create an opportunity for NANO Nuclear Energy. NNE’s compact, portable power systems can sidestep the need for extensive, time-intensive grid buildouts and offer customers rapid, reliable power solutions.
NNE’s Estimates Remain Stable
The Zacks Consensus Estimate for NNE’s 2025 and 2026 earnings per share has been unchanged in the past 60 days.
Image Source: Zacks Investment Research
Another company operating in the same space, FuelCell Energy (FCEL - Free Report) , also provides clean energy solutions to its customers through fuel cells. The fuel cells can also operate remotely and independently from the electrical grid. The Zacks Consensus Estimate for FCEL’s 2025 and 2026 earnings per share reflects year-over-year growth of 1.56% and 56.26%, respectively.
NNE’s Valuation
Since NNE is still in the early stages of development and heavily focused on research and innovation, traditional valuation metrics such as P/E and P/S ratios are not very meaningful, as it currently has little to no revenues to present to potential investors.
Given its pre-revenue status, investors may find discounted cash flow methods more useful for assessing future revenue potential. This approach can help estimate the company’s long-term value, reflecting its promise as a provider of advanced power solutions.
Summing Up
NANO Nuclear Energy, with its Innovative Microreactor Technology, has a huge potential to provide a clean energy solution to its customers. The micro reactors are currently in different stages of development and expected to be ready for commercial use by 2030, depending upon testing results and approvals from regulatory authorities.
The biggest challenge for NNE will be the competition from other firms that are also developing new technologies to produce clean energy. Cost-effective, reliable and portable clean energy solution providers will continue to have an advantage in the ongoing transition in the energy space.
Investors can hold on to NANO Nuclear Energy, which currently has a Zacks Rank #3 (Hold) and a massive potential to provide a clean energy solution to its customers.
Image: Bigstock
NNE Outperforms Industry in a Year: Buy, Hold or Sell the Stock?
Key Takeaways
Shares of NANO Nuclear Energy Inc. (NNE - Free Report) have gained 34.4% in the last year compared with the Zacks Alternative Energy - Other industry’s rise of 28.9%. The company has also outperformed the Zacks Oil-Energy sector and the Zacks S&P 500 composite’s return in the same time frame.
NANO Nuclear Energy will benefit from the immense increase in 24x7 clean energy demand from the AI-driven data centers, an increase in the usage of electric vehicles and a bottleneck in the development of large transmission and development projects will further promote its portable microreactor. NNE’s ability to quickly deploy reactors and provide power solutions to customers in remote locations acts in its favor.
Another company, Bloom Energy Corporation (BE - Free Report) , operating in the same space, provides clean energy solutions to customers through its Energy Server platform, which provides efficient, clean and dependable power solutions for both commercial and utility customers. Bloom Energy’s shares have registered a gain of 384% in the last year.
Price Performance (One year)
Image Source: Zacks Investment Research
Should investors consider adding NNE to their portfolio only based on positive price movements? Let us delve deeper and find out the factors that can help investors decide whether it is a good entry point to add NNE stock to their portfolio.
Factors Acting as a Tailwind for NNE Stock
Demand for reliable 24x7 clean energy is rising in the United States. A massive increase in demand is expected from the AI-driven data centers, usage of more electric vehicles, the reshoring of some industries and cryptocurrency mining. NANO Nuclear Energy’s microreactor can quickly provide reliable clean energy to the various industries and has a competitive time and cost advantage over large-scale reactors.
The company has acquired and successfully validated its proprietary Annular Linear Induction Pump (ALIP) technology — an advanced electromagnetic cooling system engineered to boost reactor reliability and efficiency, especially in remote or hard-to-maintain environments such as space. This unique technology gives NNE a competitive edge, enabling it to deploy microreactors in challenging locations for customers.
The company is strengthening its position through strategic partnerships and increased investment in research and development. NANO Nuclear Energy is working with the University of Illinois Urbana-Champaign on its KRONOS project and establishing a manufacturing and R&D facility in Illinois, supported by state tax incentives.
The company enjoys the benefit of faster deployment of energy solutions to customers compared with traditional large reactor operators. NNE’s microreactors feature compact, modular designs, which can enable quicker construction and more efficient deployment.
Transmission and distribution lines are critical for delivering large amounts of electricity from generation sites to end users. However, ongoing delays and bottlenecks in major transmission and distribution projects create an opportunity for NANO Nuclear Energy. NNE’s compact, portable power systems can sidestep the need for extensive, time-intensive grid buildouts and offer customers rapid, reliable power solutions.
NNE’s Estimates Remain Stable
The Zacks Consensus Estimate for NNE’s 2025 and 2026 earnings per share has been unchanged in the past 60 days.
Image Source: Zacks Investment Research
Another company operating in the same space, FuelCell Energy (FCEL - Free Report) , also provides clean energy solutions to its customers through fuel cells. The fuel cells can also operate remotely and independently from the electrical grid. The Zacks Consensus Estimate for FCEL’s 2025 and 2026 earnings per share reflects year-over-year growth of 1.56% and 56.26%, respectively.
NNE’s Valuation
Since NNE is still in the early stages of development and heavily focused on research and innovation, traditional valuation metrics such as P/E and P/S ratios are not very meaningful, as it currently has little to no revenues to present to potential investors.
Given its pre-revenue status, investors may find discounted cash flow methods more useful for assessing future revenue potential. This approach can help estimate the company’s long-term value, reflecting its promise as a provider of advanced power solutions.
Summing Up
NANO Nuclear Energy, with its Innovative Microreactor Technology, has a huge potential to provide a clean energy solution to its customers. The micro reactors are currently in different stages of development and expected to be ready for commercial use by 2030, depending upon testing results and approvals from regulatory authorities.
The biggest challenge for NNE will be the competition from other firms that are also developing new technologies to produce clean energy. Cost-effective, reliable and portable clean energy solution providers will continue to have an advantage in the ongoing transition in the energy space.
Investors can hold on to NANO Nuclear Energy, which currently has a Zacks Rank #3 (Hold) and a massive potential to provide a clean energy solution to its customers.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.