NuScale Power Corporation (SMR Quick QuoteSMR - Free Report) is expected to narrow its loss sharply in 2026, giving investors one reason to reconsider the beaten-down nuclear stock. The Zacks Consensus Estimate calls for a loss of 64 cents per share this year, implying a 70.5% year-over-year improvement.

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Yet, the market remains cautious. SMR shares have fallen 39.9% in 2026 and currently trade at $8.51, not far from their 52-week low of $7.21. Fellow advanced nuclear stocks Oklo Inc. (OKLO Quick QuoteOKLO - Free Report) and NANO Nuclear Energy (NNE Quick QuoteNNE - Free Report) have also declined 49.5% and 33.8%, respectively, this year. The question is whether NuScale’s fall below $10 has created an attractive entry point or simply reflects the risks still facing the business.

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Improving Earnings Outlook Makes SMR Worth Watching

The expected year-over-year improvement in NuScale’s 2026 loss is encouraging because the company is still in the pre-commercial stage. NuScale has spent heavily preparing its reactor technology, engineering and supply chain for deployment. Management has also been keeping a close watch on operating expenses and says it does not want rising costs to erode liquidity.

Still, an improving loss estimate should not be confused with profitability. NuScale generated just $0.1 million of revenues in the second quarter compared with $8.1 million a year earlier after work related to the RoPower project declined.  This is a common issue across emerging nuclear names. OKLO is investing heavily before its main power projects generate meaningful electricity revenues, while NANO Nuclear still has licensing and construction work ahead before its reactors can contribute meaningful sales. The sector’s promise is large, but near-term earnings remain tied more to development spending than commercial reactor operations.

NuScale Has a Head Start Where It Matters

The strongest argument for viewing SMR’s current price as a potential bargain is its readiness. NuScale remains the only small modular reactor developer with U.S. Nuclear Regulatory Commission (NRC) design certification, including standard design approvals for two designs. Its reactors are designed to use commercially available low-enriched uranium rather than depending on a fuel source that is not yet available at commercial scale.

NuScale has also built a network of more than 60 specialized suppliers and reached agreements with more than half of them. Detailed designs for critical-path components are mature, while some components are already in production. That preparation matters because reactor projects can face long delays when engineering, fuel and suppliers are not ready.

This gives NuScale a different starting point from several advanced nuclear developers. OKLO is building an integrated platform across power, fuel and isotopes, while NANO Nuclear is advancing its KRONOS microreactor through the NRC review process. Both offer interesting long-term stories, but NuScale already has an approved reactor design, commercially available fuel and an established supply chain.

Big Projects Could Change the Revenue Story

The next step is converting that readiness into firm commercial business. ENTRA1 Energy, NuScale’s exclusive global strategic partner, continues discussions with the Tennessee Valley Authority toward a definitive power purchase agreement for what could become a major U.S. nuclear deployment program. NuScale is also working with Nuclearelectrica and RoPower to advance a Romanian project planned around six NuScale Power Modules.

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Either project moving into firm execution would give investors clearer evidence that NuScale’s years of engineering work can translate into reactor sales and services. The company also ended the second quarter with about $1.9 billion in cash, cash equivalents and investments, providing substantial financial capacity as it prepares for deployment.

The opportunity is therefore easier to understand than the share price alone suggests. SMR, OKLO and NNE are all trying to capture rising demand for dependable nuclear power, including from data centers and industrial customers. NuScale’s advantage is that several technical and regulatory pieces are already in place.

Why SMR Could Still Be a Trap Now

The problem is that readiness does not guarantee orders. NuScale still needs binding customer contracts, project financing and timely approvals before large-scale deployments can produce meaningful revenues. The company itself lists customer funding, manufacturing delays, supply constraints, competition and dependence on ENTRA1 among its risks. Continued losses and future share issuance could also pressure investors.

That distinction is important when comparing NuScale with OKLO and NNE. Each company has different technology and commercialization plans, but all three remain exposed to long development timelines and execution risk. SMR’s current share price may look inexpensive compared with where the stock previously traded, but a low nominal share price does not by itself make a stock cheap.

Conclusion

NuScale below $10 looks more like a stock worth watching than an obvious bargain or a clear trap. The expected 70.5% improvement in its 2026 loss, NRC-approved technology, available fuel, prepared supply chain and $1.9 billion liquidity position support the investment case. Yet meaningful revenues still depend on converting opportunities such as TVA and RoPower into firm commercial projects. With SMR trading only modestly above its 52-week low, investors have a lower entry price but still face substantial execution risk. NuScale Power currently carries a Zacks Rank #3 (Hold), which fits this balanced setup. There are credible reasons for long-term interest, but investors may want stronger evidence of commercial conversion before becoming more constructive.

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