Dj Oklo Inc Cl A, Inst Holders, 3Q 2024 (Oklo)

Today’s episode of Full Court Finance at Zacks explores why Wall Street views nuclear energy stocks as an investment in the long-term growth of artificial intelligence (AI).

The episode then dives into three soaring nuclear energy stocks—BWX Technologies, Vistra, and Oklo—that investors might want to buy heading into December and hold for long-term growth.

See the Zacks Earnings Calendar to stay ahead of market-making news.

The U.S. wants to be an energy independent, dynamic, power-hungry economy while trying to cut back on fossil fuels. Nuclear is clean, reliable 24/7 baseload power with a proven track record.

Nuclear power plants produce maximum power more than 92% of the time, making nuclear about 2X more reliable than natural gas and roughly 3X times more than wind and solar.

Large data centers can consume nearly the same amount of electricity as a midsize city, and generative AI platforms like ChatGPT can use at least 10x the amount of energy as a Google search.

This backdrop is why technology giants Amazon, Alphabet, and Microsoft have made multi-billion-dollar nuclear power deals in 2024.

The buildout of the nuclear-powered economy will cost trillions of dollars and take decades, even though nuclear energy has supplied around 20% of U.S. electricity for over 30 years running.

The U.S. government has rolled out multiple efforts to support the nuclear energy resurgence, pledging to triple nuclear energy capacity by 2050. Outside of the U.S., China, India, and other key economies are going all in on nuclear.

Three of the top 10 S&P 500 stocks in 2024 are nuclear energy companies, including No. 1 Vistra.

All three of stocks we cover below are held in the Alternative Energy Innovators service at Zacks.

Buy and Hold BWXT for Long-Term Nuclear Energy Growth?

BWX Technologies BWXT is a top supplier of nuclear technologies, components, and fuel to the U.S. government. BWXT owns one of the largest commercial nuclear equipment manufacturing facilities and it’s expanding its reach to benefit from the coming nuclear energy boom.

BWX Technologies is building out its manufacturing capacity to “support ongoing and anticipated customers’ investments in Small Modular Reactors, traditional large-scale nuclear and advanced reactors, in Canada and around the world.”

BWX Technologies has landed deals and partnerships with the U.S. Department of Defense to help build a cutting-edge micro-nuclear reactor. It is also working alongside key commercial nuclear energy companies such as GE Vernova and SMR standout TerraPower.

For Immediate Release

Chicago, IL – November 22, 2024 – Today, Zacks Investment Ideas feature highlights Oklo OKLO, Coinbase Global COIN, Tesla TSLA, GEO Group GEO and Energy Select Sector SPDR ETF XLE.

Trump Election Victory: 5 Stocks to Benefit Most

Presidential Impact on Stocks

Earlier this month, former President Donald Trump defeated Vice President Kamala Harris to become the president-elect. As I have discussed in previous commentaries, the data suggests that U.S. presidents have little impact on the overarching market for two reasons:

1. The U.S. Economy Is Massive: Though presidents wield the most power in the U.S., the economy is akin to a giant tanker – its immense size and complex interconnectedness make it challenging to switch directions on a dime.

2. Split Government: Over the past few decades, the governmental branches have been split more often than not. The inherent checks and balances thought up by the founding fathers can make it difficult to get an agenda through quickly.

Presidential Impact on Equities: Why This Time Is Different

While the above points are accurate more often than not, President Trump’s second term is likely to be impactful. Because Republicans swept all three branches of government, Trump and his allies will be able to pass their agenda easier than the norm. Though the macroeconomic impact may take a few years to be realized, the Trump win will significantly impact on individual stocks. Below are five stocks that benefit the most from the Trump victory:

1. Oklo

Oklo develops advanced nuclear reactors that provide the clean and efficient power necessary to power AI data centers. The company enjoys a leg up versus the competition because OpenAI CEO Sam Altman serves as the chairman. As if that wasn’t enough, Oklo will now enjoy political power and influence after the Trump transition team tapped Oklo board member Chris Wright to head the Department of Energy (DOE). Though the U.S. is behind in the nuclear race, the appointment clearly signals that the Trump administration will push nuclear ambitions to fuel the artificial intelligence boom.

2. Coinbase Global

Coinbase, the leading U.S. crypto exchange, has been one of the best performing stocks over the past year. However, the stock performance is even more impressive when investors consider the fact that the current political regime has been a thorn in the company’s side. For example, the Securities and Exchange Commission (SEC) sued Coinbase after alleging that it is operating an “unregistered” exchange.

However, Coinbase received some welcome news when then-candidate Trump announced to a cheering crowd at a Bitcoin conference that he intends to fire SEC Chair Gary Gensler on day one of his presidency. Meanwhile, Coinbase CEO Brian Armstrong is already making inroads with the new administration and is expected to meet with Trump and his team to advise them on crypto policy.

3. Tesla

Few people have grown closer to President-elect Donald Trump than Tesla CEO Elon Musk. Musk has essentially bet the company’s future on autonomous driving and robotaxis. Earlier this week,the Trump team promised to cut back regulations on autonomous driving. The news is huge for Tesla because strict regulations have prevented Tesla from rolling out its delayed (and highly anticipated) robotaxis. Further, Sean Duffy, who Trump named for his pick for Secretary of Transportation, is another bullish signal for the stock. In 2018 remarks, Duffy said that AV “technology can be remarkable in keeping our families and kids safe.”

4. GEO Group

GEO spiked 42% on the day after the election –for good reason. The company operates private prisons, mental health facilities, and immigration detention centers. Of course, one of Trump’s primary campaign promises is to clean up the U.S. immigration system and deport illegal entrants into the country. With the pick of Tom Homan for “Border Czar,” Trump is following through on his promise. Homan, the former Acting Director of Immigration and Customs Enforcement (ICE), is an immigration hawk.

5. Energy Select Sector SPDR ETF

Another core promise of the Trump administration is to “unleash American energy” and “drill, baby drill.” Trump plans to deregulate environmental regulations to help U.S. energy producers unlock the country’s natural resources.

Conclusion

The resounding Trump election victory and the Republican “mandate” will dramatically impact stocks like GEO Group, Coinbase, and Tesla.

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