We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
UUUU Surges 418% in a Year: Buy, Sell or Hold the Stock?
Read MoreHide Full Article
Key Takeaways
Energy Fuels stock soared 418.3% in a year, beating the industry, sector, S&P 500 and peers.
UUUU hit a milestone, producing high-purity terbium oxide, advancing rare earth capabilities.
UUUU expects higher uranium output and margins by 2026 but remains unprofitable until 2027.
Energy Fuels (UUUU - Free Report) has delivered an extraordinary 418.3% return over the past year, outpacing the non-ferrous mining industry’s 130.2% growth, the Zacks Basic Materials sector’s 62.5% gain and the S&P 500’s 36% climb.
The stock has also outperformed peers like Centrus Energy (LEU - Free Report) , Uranium Energy (UEC - Free Report) and Cameco (CCJ - Free Report) , as shown in the chart below.
UUUU’s Performance vs. Industry, Sector, S&P 500 & Peers
Image Source: Zacks Investment Research
Before investors chase this powerful run, it is important to examine the factors driving the momentum. It is also crucial to assess whether the growth is sustainable and understand the risks involved.
UUUU’s Breakthrough in Magnet-Grade Rare Earth Production
Energy Fuels recently achieved a key milestone by producing its first kilogram of high-purity terbium oxide at its White Mesa Mill in Utah, using domestically sourced monazite ore. This marks meaningful progress toward building a fully integrated “mine-to-oxide” capability for heavy rare earth elements (HREEs). UUUU met the strict standards required by global rare earth permanent magnet (REPM) manufacturers.
The White Mesa Mill is expected to sustain pilot production at roughly one kilogram per week, with additional pilot campaigns planned for samarium (Sm), europium (Eu) and gadolinium (Gd) oxides. This achievement builds on Energy Fuels’ earlier production of 99.9% pure dysprosium (Dy) oxide, another critical HREE used in REPMs.
Energy Fuels’ Efforts in Growing Rare Earth Presence
The company is advancing plans to expand its existing processing circuits to enable commercial-scale recovery of Dy, Tb, Sm, Eu and Gd, while retaining flexibility to separate additional elements such as yttrium (Y) and lutetium (Lu), depending on market demand. The expanded commercial circuit could become operational as early as 2027, with expected annual output of approximately 35 tons of dysprosium and 12 tons of terbium, alongside 850–1,000 tons of neodymium-praseodymium (NdPr).
A Phase 2 expansion targeted for 2029 aims to boost total rare earth oxide production capacity to more than 6,000 tons per year of NdPr oxide, in addition to around 80 tons of terbium and 288 tons of dysprosium. This could support materials for up to 7 million electric and hybrid vehicles annually.
To secure feedstock, the company intends to continue sourcing monazite concentrates domestically and internationally, including the Donald Project in Australia, the Vara Mada Project in Madagascar and the Bahia Project in Brazil. Energy Fuels inked a deal to acquire Australian Strategic Materials, a leading producer of REE. Expected to close in the first half of this year, the deal will help create the largest, fully integrated REE "mine-to-metal and alloy" producer outside of China.
UUUU Projects Production Growth in 2026
The Pinyon Plain Mine in Arizona and the La Sal Complex in Utah produced more than 1.6 million pounds of uranium through 2025. The company expects to mine 2-2.5 million pounds of uranium in 2026. UUUU plans to sell 1.5-2 million pounds of uranium under existing contracts and spot market sales.
Processing of low-cost Pinyon Plain ore, which began in late 2025, is expected to continue through the second quarter of 2026. The company expects gross margins in 2026 to increase to 50% and above, as the finished inventory weighted average cost continues to decrease from $43 per pound to the low $30 levels and uranium prices strengthen.
UUUU Boasts a Debt-Free Balance Sheet
Energy Fuels ended 2025 with $927.5 million of working capital, including $64.7 million of cash and cash equivalents, $797.1 million of marketable securities, $18 million of trade and other receivables, $73.5 million of inventory, and no debt.
Energy Fuels’ Valuation Appears Stretched
Energy Fuels is trading at a forward price/sales (P/S) of 25.17X, well above the industry average of 4.53X. The company’s Value Score of F suggests that the stock is not so cheap and has a stretched valuation at this moment.
Image Source: Zacks Investment Research
Meanwhile, Centrus Energy and Cameco are cheaper alternatives than UUUU, with P/S of 7.74X and 18.22X, respectively. Uranium Energy is trading at a loftier P/S of 82.47X.
UUUU Likely to Report a Loss in 2026, Profit Expected in 2027
The Zacks Consensus Estimate for UUUU’s earnings for 2026 is pegged at a loss of six cents per share, narrower than the loss of 38 cents in 2025. The bottom-line estimate for 2027 stands at earnings of 13 cents per share. This suggests that 2027 will be the company's first year of profit since it started trading on the NYSE in December 2013.
Image Source: Zacks Investment Research
While the estimate for 2026 has moved up in the past 60 days, the same for 2027 has moved down, as shown in the chart below.
Image Source: Zacks Investment Research
UUUU’s Long-Term Tailwinds Remain Strong
The long-term outlook for Energy Fuels remains favorable, driven by rising demand for uranium and rare earth elements, along with efforts to reduce reliance on Chinese supply chains. Energy Fuels’ White Mesa Mill, currently the only U.S. facility capable of processing monazite into separated rare earth materials, provides a strategic advantage.
Backed by its debt-free balance sheet, Energy Fuels is ramping up uranium production while developing significant REE capabilities. Its standby projects (Nichols Ranch ISR, Whirlwind) have a combined potential to add up to 500,000 pounds of annual uranium production within six – 12 months of a “Go” decision. Additionally, its large-scale development projects (Roca Honda, Sheep Mountain, Henry Mountains – Bullfrog) have a combined potential to produce up to 6 million pounds of uranium per year.
How to Play Energy Fuels Stock?
Energy Fuels offers compelling long-term potential, supported by its strong balance sheet, expanding rare earth footprint and improving uranium production profile. However, the stock’s premium valuation and expected losses through 2026 suggest investors may want to wait for a better entry point.
View the Zacks #1 Rank List
Image: Bigstock
UUUU Surges 418% in a Year: Buy, Sell or Hold the Stock?
Key Takeaways
Energy Fuels (UUUU - Free Report) has delivered an extraordinary 418.3% return over the past year, outpacing the non-ferrous mining industry’s 130.2% growth, the Zacks Basic Materials sector’s 62.5% gain and the S&P 500’s 36% climb.
The stock has also outperformed peers like Centrus Energy (LEU - Free Report) , Uranium Energy (UEC - Free Report) and Cameco (CCJ - Free Report) , as shown in the chart below.
UUUU’s Performance vs. Industry, Sector, S&P 500 & Peers
Image Source: Zacks Investment Research
Before investors chase this powerful run, it is important to examine the factors driving the momentum. It is also crucial to assess whether the growth is sustainable and understand the risks involved.
UUUU’s Breakthrough in Magnet-Grade Rare Earth Production
Energy Fuels recently achieved a key milestone by producing its first kilogram of high-purity terbium oxide at its White Mesa Mill in Utah, using domestically sourced monazite ore. This marks meaningful progress toward building a fully integrated “mine-to-oxide” capability for heavy rare earth elements (HREEs). UUUU met the strict standards required by global rare earth permanent magnet (REPM) manufacturers.
The White Mesa Mill is expected to sustain pilot production at roughly one kilogram per week, with additional pilot campaigns planned for samarium (Sm), europium (Eu) and gadolinium (Gd) oxides. This achievement builds on Energy Fuels’ earlier production of 99.9% pure dysprosium (Dy) oxide, another critical HREE used in REPMs.
Energy Fuels’ Efforts in Growing Rare Earth Presence
The company is advancing plans to expand its existing processing circuits to enable commercial-scale recovery of Dy, Tb, Sm, Eu and Gd, while retaining flexibility to separate additional elements such as yttrium (Y) and lutetium (Lu), depending on market demand. The expanded commercial circuit could become operational as early as 2027, with expected annual output of approximately 35 tons of dysprosium and 12 tons of terbium, alongside 850–1,000 tons of neodymium-praseodymium (NdPr).
A Phase 2 expansion targeted for 2029 aims to boost total rare earth oxide production capacity to more than 6,000 tons per year of NdPr oxide, in addition to around 80 tons of terbium and 288 tons of dysprosium. This could support materials for up to 7 million electric and hybrid vehicles annually.
To secure feedstock, the company intends to continue sourcing monazite concentrates domestically and internationally, including the Donald Project in Australia, the Vara Mada Project in Madagascar and the Bahia Project in Brazil. Energy Fuels inked a deal to acquire Australian Strategic Materials, a leading producer of REE. Expected to close in the first half of this year, the deal will help create the largest, fully integrated REE "mine-to-metal and alloy" producer outside of China.
UUUU Projects Production Growth in 2026
The Pinyon Plain Mine in Arizona and the La Sal Complex in Utah produced more than 1.6 million pounds of uranium through 2025. The company expects to mine 2-2.5 million pounds of uranium in 2026. UUUU plans to sell 1.5-2 million pounds of uranium under existing contracts and spot market sales.
Processing of low-cost Pinyon Plain ore, which began in late 2025, is expected to continue through the second quarter of 2026. The company expects gross margins in 2026 to increase to 50% and above, as the finished inventory weighted average cost continues to decrease from $43 per pound to the low $30 levels and uranium prices strengthen.
UUUU Boasts a Debt-Free Balance Sheet
Energy Fuels ended 2025 with $927.5 million of working capital, including $64.7 million of cash and cash equivalents, $797.1 million of marketable securities, $18 million of trade and other receivables, $73.5 million of inventory, and no debt.
Energy Fuels’ Valuation Appears Stretched
Energy Fuels is trading at a forward price/sales (P/S) of 25.17X, well above the industry average of 4.53X. The company’s Value Score of F suggests that the stock is not so cheap and has a stretched valuation at this moment.
Meanwhile, Centrus Energy and Cameco are cheaper alternatives than UUUU, with P/S of 7.74X and 18.22X, respectively. Uranium Energy is trading at a loftier P/S of 82.47X.
UUUU Likely to Report a Loss in 2026, Profit Expected in 2027
The Zacks Consensus Estimate for UUUU’s earnings for 2026 is pegged at a loss of six cents per share, narrower than the loss of 38 cents in 2025. The bottom-line estimate for 2027 stands at earnings of 13 cents per share. This suggests that 2027 will be the company's first year of profit since it started trading on the NYSE in December 2013.
Image Source: Zacks Investment Research
While the estimate for 2026 has moved up in the past 60 days, the same for 2027 has moved down, as shown in the chart below.
Image Source: Zacks Investment Research
UUUU’s Long-Term Tailwinds Remain Strong
The long-term outlook for Energy Fuels remains favorable, driven by rising demand for uranium and rare earth elements, along with efforts to reduce reliance on Chinese supply chains. Energy Fuels’ White Mesa Mill, currently the only U.S. facility capable of processing monazite into separated rare earth materials, provides a strategic advantage.
Backed by its debt-free balance sheet, Energy Fuels is ramping up uranium production while developing significant REE capabilities. Its standby projects (Nichols Ranch ISR, Whirlwind) have a combined potential to add up to 500,000 pounds of annual uranium production within six – 12 months of a “Go” decision. Additionally, its large-scale development projects (Roca Honda, Sheep Mountain, Henry Mountains – Bullfrog) have a combined potential to produce up to 6 million pounds of uranium per year.
How to Play Energy Fuels Stock?
Energy Fuels offers compelling long-term potential, supported by its strong balance sheet, expanding rare earth footprint and improving uranium production profile.
However, the stock’s premium valuation and expected losses through 2026 suggest investors may want to wait for a better entry point.
The company currently has a Zacks Rank #3 (Hold), which supports our thesis. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.