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SMR Stock Plunges 14% in a Month: Should You Buy, Sell or Hold?
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Key Takeaways
NuScale Power posted a Q4 loss of 80 cents and $1.8M revenues, both missing estimates.
NuScale Power's 6-GW TVA program could deploy 72 modules across six plants.
SMR trades at 19.41X forward sales, far above peers like BWXT, GEV and CEG.
NuScale Power (SMR - Free Report) shares have plunged 13.5% in the past month, underperforming the Zacks Electronics- Power Generation industry’s decline of 2.1%. The stock has underperformed its industry peers, including BWX Technologies (BWXT - Free Report) , Constellation Energy (CEG - Free Report) and GE Vernova (GEV - Free Report) . In the past month, shares of BWX Technologies, Constellation Energy and GE Vernova have returned 0.4%, 15% and 3.2%, respectively.
One-month Price Return Performance
Image Source: Zacks Investment Research
What’s Behind the Recent Plunge in SMR Stock?
The decline in share price can be attributed to weaker-than-expected fourth-quarter 2025 results, execution risks being faced by the company on its plans to set up 6 gigawatts (GW) of nuclear capacity and to a highly competitive energy market, which includes the growing presence of renewable energy sources.
NuScale Power reported a loss per share of 80 cents for the fourth quarter of 2025, wider than the Zacks Consensus Estimate of a loss of 10 cents. The company reported earnings of 60 cents per share in the year-ago quarter. NuScale Power recorded revenues of $1.8 million, which missed the Zacks Consensus Estimate of $7.2 million. The figure marks a significant decline from $34.2 million in the prior-year quarter. The decline was mainly due to lower revenue recognized from the RoPower technology licensing agreement.
Further, NuScale Power is still in the early stage of commercializing its small modular reactor technology, where some large opportunities are still in the development stage. For instance, the potential 6-gigawatt (6GW) program involving Tennessee Valley Authority (TVA) is progressing through important early steps, where key agreements such as power purchase agreements (PPAs) are still pending.
Securing PPAs are important because it defines how electricity from future nuclear plants will be sold and is also a key requirement for securing project financing. As of now, the project cannot move forward until the PPAs and financing are finalized, which shows that one of the company’s largest potential opportunities is still dependent on agreements that have not yet been completed.
NuScale Power Faces Stiff Competition
Despite NuScale Power’s advancements in small modular reactor technology, the company faces stiff competition in the nuclear energy industry from companies, such as Constellation Energy, BWX Technologies and GE Vernova.
In February 2026, GE Vernova and Xcel Energy signed a long-term strategic partnership to support Xcel’s power generation and grid projects. Under the agreement, GE Vernova will supply gas turbines, wind turbines and grid equipment, helping Xcel secure reliable equipment supply, manage costs and deliver stable electricity to customers.
In January 2026, Constellation Energy announced that the U.S. Nuclear Regulatory Commission has approved the company’s request to upgrade the control systems at the Limerick Clean Energy Center. The project will cost $167 million and is part of the company’s larger $5.1 billion investment in Pennsylvania. This will help Constellation Energy to keep about 5,100 MW of existing power capacity running and add 1,200 MW more to help keep energy prices stable.
In December 2025, BWX Technologies was selected as part of a consortium to act as Owner’s Engineer for Kozloduy Nuclear Power Plant Units 7 and 8. Here, BWX Technology will oversee design, construction and safety for the Bulgarian government’s planned Westinghouse AP1000 nuclear reactors to support safe and timely project delivery.
SMR’s Premium Valuation Warrants a Cautious Approach
NuScale Power is currently trading at a high price-to-sales (P/S) multiple compared with the Zacks Electronics- Power Generation industry. NuScale Power’s forward 12-month P/S ratio sits at 19.41X, significantly higher than the industry’s forward 12-month P/S ratio of 7.06X. The Zacks Value Score of F also suggests that NuScale Power stock is overvalued.
Forward 12 Month P/S Ratio
Image Source: Zacks Investment Research
NuScale Power stock trades at a higher P/S multiple compared with its peers, including BWX Technologies, Constellation Energy and GE Vernova. At present, BWX Technologies, Constellation Energy and GE Vernova have P/S multiples of 4.72X, 2.95X and 4.97X, respectively.
Key Technical Indicator Signals Bearish Trend for SMR
NuScale Power shares have dipped below their 50-day & 200-day moving averages, a bearish technical signal that indicates the potential for continued downward pressure in the short term.
SMR 50-Day & 200-day Simple Moving Averages
Image Source: Zacks Investment Research
However, for investors, not everything is gloom and doom.
TVA’s 6-GW Program Boosts SMR’s Prospects
NuScale Power is progressing on a large potential deployment opportunity through the ENTRA1 Energy and TVA program. TVA has announced an agreement to purchase power from ENTRA1 through a planned 6GW nuclear program. The program could involve the deployment of 72 NuScale Power Modules deployed across six plants in TVA’s seven-state service region.
This represents one of the largest nuclear development programs in the United States and could support rising electricity demand from industries, such as AI data centers and advanced manufacturing. ENTRA1 and TVA are continuing discussions toward a definitive PPA. Project teams have conducted site visits and engineering evaluations, and potential locations for the first plant have been identified.
During the fourth quarter, management stated that ENTRA1 is also assembling a project infrastructure team that includes engineering firms, construction contractors, investors and legal advisers to support project execution. Financing discussions are also progressing. Management said several major financial institutions are working with ENTRA1 on the project financing structure, and one major institution has already signed a multibillion-dollar term sheet. These discussions are expected to support the funding required for the development of the small modular reactor power plants under the TVA program.
NuScale Power expects the project to generate revenues once the PPA is signed. Management said the company could begin earning service revenues from activities, such as combined operating license application work and FEED services related to ENTRA1 plants. Once the PPAs are signed and financing is secured, the 6 GW TVA opportunity could become a major revenue driver for NuScale Power.
Conclusion: Hold NuScale Power Stock Right Now
NuScale Power’s advancements in small modular reactor technology, along with its growing partnerships with tech giants and financial institutions, position it as a key player in the future of sustainable, carbon-free energy.
However, the company faces challenges in the highly competitive energy market, which includes the growing presence of renewable energy sources and regulatory hurdles. NuScale Power’s stretched valuation also warrants a cautious approach to the stock.
View the Zacks #1 Rank List
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SMR Stock Plunges 14% in a Month: Should You Buy, Sell or Hold?
Key Takeaways
NuScale Power (SMR - Free Report) shares have plunged 13.5% in the past month, underperforming the Zacks Electronics- Power Generation industry’s decline of 2.1%. The stock has underperformed its industry peers, including BWX Technologies (BWXT - Free Report) , Constellation Energy (CEG - Free Report) and GE Vernova (GEV - Free Report) . In the past month, shares of BWX Technologies, Constellation Energy and GE Vernova have returned 0.4%, 15% and 3.2%, respectively.
One-month Price Return Performance
Image Source: Zacks Investment Research
What’s Behind the Recent Plunge in SMR Stock?
The decline in share price can be attributed to weaker-than-expected fourth-quarter 2025 results, execution risks being faced by the company on its plans to set up 6 gigawatts (GW) of nuclear capacity and to a highly competitive energy market, which includes the growing presence of renewable energy sources.
NuScale Power reported a loss per share of 80 cents for the fourth quarter of 2025, wider than the Zacks Consensus Estimate of a loss of 10 cents. The company reported earnings of 60 cents per share in the year-ago quarter. NuScale Power recorded revenues of $1.8 million, which missed the Zacks Consensus Estimate of $7.2 million. The figure marks a significant decline from $34.2 million in the prior-year quarter. The decline was mainly due to lower revenue recognized from the RoPower technology licensing agreement.
Further, NuScale Power is still in the early stage of commercializing its small modular reactor technology, where some large opportunities are still in the development stage. For instance, the potential 6-gigawatt (6GW) program involving Tennessee Valley Authority (TVA) is progressing through important early steps, where key agreements such as power purchase agreements (PPAs) are still pending.
Securing PPAs are important because it defines how electricity from future nuclear plants will be sold and is also a key requirement for securing project financing. As of now, the project cannot move forward until the PPAs and financing are finalized, which shows that one of the company’s largest potential opportunities is still dependent on agreements that have not yet been completed.
NuScale Power Faces Stiff Competition
Despite NuScale Power’s advancements in small modular reactor technology, the company faces stiff competition in the nuclear energy industry from companies, such as Constellation Energy, BWX Technologies and GE Vernova.
In February 2026, GE Vernova and Xcel Energy signed a long-term strategic partnership to support Xcel’s power generation and grid projects. Under the agreement, GE Vernova will supply gas turbines, wind turbines and grid equipment, helping Xcel secure reliable equipment supply, manage costs and deliver stable electricity to customers.
In January 2026, Constellation Energy announced that the U.S. Nuclear Regulatory Commission has approved the company’s request to upgrade the control systems at the Limerick Clean Energy Center. The project will cost $167 million and is part of the company’s larger $5.1 billion investment in Pennsylvania. This will help Constellation Energy to keep about 5,100 MW of existing power capacity running and add 1,200 MW more to help keep energy prices stable.
In December 2025, BWX Technologies was selected as part of a consortium to act as Owner’s Engineer for Kozloduy Nuclear Power Plant Units 7 and 8. Here, BWX Technology will oversee design, construction and safety for the Bulgarian government’s planned Westinghouse AP1000 nuclear reactors to support safe and timely project delivery.
SMR’s Premium Valuation Warrants a Cautious Approach
NuScale Power is currently trading at a high price-to-sales (P/S) multiple compared with the Zacks Electronics- Power Generation industry. NuScale Power’s forward 12-month P/S ratio sits at 19.41X, significantly higher than the industry’s forward 12-month P/S ratio of 7.06X. The Zacks Value Score of F also suggests that NuScale Power stock is overvalued.
Forward 12 Month P/S Ratio
Image Source: Zacks Investment Research
NuScale Power stock trades at a higher P/S multiple compared with its peers, including BWX Technologies, Constellation Energy and GE Vernova. At present, BWX Technologies, Constellation Energy and GE Vernova have P/S multiples of 4.72X, 2.95X and 4.97X, respectively.
Key Technical Indicator Signals Bearish Trend for SMR
NuScale Power shares have dipped below their 50-day & 200-day moving averages, a bearish technical signal that indicates the potential for continued downward pressure in the short term.
SMR 50-Day & 200-day Simple Moving Averages
Image Source: Zacks Investment Research
However, for investors, not everything is gloom and doom.
TVA’s 6-GW Program Boosts SMR’s Prospects
NuScale Power is progressing on a large potential deployment opportunity through the ENTRA1 Energy and TVA program. TVA has announced an agreement to purchase power from ENTRA1 through a planned 6GW nuclear program. The program could involve the deployment of 72 NuScale Power Modules deployed across six plants in TVA’s seven-state service region.
This represents one of the largest nuclear development programs in the United States and could support rising electricity demand from industries, such as AI data centers and advanced manufacturing. ENTRA1 and TVA are continuing discussions toward a definitive PPA. Project teams have conducted site visits and engineering evaluations, and potential locations for the first plant have been identified.
During the fourth quarter, management stated that ENTRA1 is also assembling a project infrastructure team that includes engineering firms, construction contractors, investors and legal advisers to support project execution. Financing discussions are also progressing. Management said several major financial institutions are working with ENTRA1 on the project financing structure, and one major institution has already signed a multibillion-dollar term sheet. These discussions are expected to support the funding required for the development of the small modular reactor power plants under the TVA program.
NuScale Power expects the project to generate revenues once the PPA is signed. Management said the company could begin earning service revenues from activities, such as combined operating license application work and FEED services related to ENTRA1 plants. Once the PPAs are signed and financing is secured, the 6 GW TVA opportunity could become a major revenue driver for NuScale Power.
Conclusion: Hold NuScale Power Stock Right Now
NuScale Power’s advancements in small modular reactor technology, along with its growing partnerships with tech giants and financial institutions, position it as a key player in the future of sustainable, carbon-free energy.
However, the company faces challenges in the highly competitive energy market, which includes the growing presence of renewable energy sources and regulatory hurdles. NuScale Power’s stretched valuation also warrants a cautious approach to the stock.
NuScale Power currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.