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Green Gold: Investing in the Cannabis Industry in 2024

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Editorial Staff
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With the marijuana industry projected to grow at a compound annual growth rate of at least 25% through 2030, savvy investors are keenly eyeing opportunities to tap into this green rush. The momentum is fueled by sweeping changes in legislation across the globe, from decriminalization to full legalization of cannabis, opening up a fertile ground for both budding entrepreneurs and established companies to sow their seeds of growth.

The recent move by the Biden administration to reclassify marijuana from a Schedule 1 to a Schedule 3 controlled substance marks a significant shift in federal policy. This reclassification not only acknowledges the medical benefits of cannabis but also lowers the barriers for research and banking in the industry, potentially unlocking new opportunities and markets.

Whether you’re just starting to explore the investment potential of cannabis or you’re looking to diversify your portfolio, understanding the nuances of this industry is crucial. Our guide is designed to bring you up to speed quickly, offering insights into the market dynamics, key players, and the regulatory landscape. We’ve handpicked a selection of marijuana stocks that stand out for their growth prospects, innovation, and strategic positioning in the market. Let’s dive into the world of cannabis investing, where the opportunities are as diverse as the strains of the plant itself.

Innovative Industrial Properties (IIPR): Unlocking Capital for Cannabis Growth

In the intricate web of U.S. cannabis industry financing, Innovative Industrial Properties (IIPR) stands out as a crucial player. With federal laws keeping traditional banks at bay, cannabis companies often find themselves in a financial bind. Enter IIPR, a real estate investment trust (REIT) that provides a lifeline to these companies through its ingenious sale-leaseback model. By purchasing properties from medical cannabis operators and leasing them back, IIPR injects much-needed capital into these businesses, while securing a steady flow of revenue for itself.

The strategy has proven to be a win-win, propelling IIPR to own properties across 19 states. Despite the financial hurdles some of its tenants face, IIPR’s growth trajectory remains strong, showcasing impressive revenue and earnings expansion. As a REIT, it’s committed to distributing at least 90% of its taxable income back to its shareholders, making it an attractive pick for income-focused investors.

While the prospect of federal cannabis reform presents a nuanced challenge for IIPR, potentially increasing competition by opening up traditional banking avenues for cannabis companies, it’s also poised to benefit from the overall market expansion such reforms would trigger. With its shares already trading on the New York Stock Exchange, IIPR is well-positioned to capitalize on the evolving landscape

Scotts Miracle-Gro (NYSE: SMG) – Cultivating Growth in the Cannabis and Consumer Lawn Sectors

Scotts Miracle-Gro stands out in the burgeoning cannabis industry, not just for its direct involvement but for its strategic positioning that leverages both the highs of the cannabis market and the steady growth of consumer lawn and garden care. With its shares comfortably listed on the NYSE, Scotts navigates the complex legal landscape of cannabis without stepping over federal lines, thanks to its subsidiary, Hawthorne Gardening.

Hawthorne Gardening is at the forefront of supplying hydroponic solutions to the cannabis sector, a critical component for cultivators aiming to maximize yield and quality. Despite facing the same supply-and-demand challenges that have temporarily dampened the spirits of the cannabis market, Hawthorne’s long-term outlook remains as promising as ever. The anticipated expansion of the cannabis industry, projected to grow at a compound annual growth rate of 25% through 2030, hints at a vast runway for growth that Hawthorne is well-positioned to capitalize on.

However, Scotts Miracle-Gro’s story isn’t just about cannabis. The company’s backbone remains its consumer lawn and garden products, which continue to generate the lion’s share of its revenue. This segment of Scotts’ business offers a buffer against the volatility of the cannabis market, providing a steady stream of income even as commodity prices fluctuate. The dual nature of Scotts’ business model not only diversifies its revenue streams but also stabilizes its financial performance, making it a unique pick for investors looking to blend growth with stability in the evolving landscape of marijuana stocks.

Jazz Pharmaceuticals (NASDAQ: JAZZ) – Pioneering Cannabis-Based Medicines

Jazz Pharmaceuticals, an Ireland-based powerhouse, has made significant waves in the cannabis sector and beyond, particularly following its strategic acquisition of GW Pharmaceuticals in May 2021. This move not only expanded Jazz’s portfolio but also positioned it as a leader in the development of cannabis-based medicines. Jazz Pharmaceuticals’ flagship product, Epidiolex, has set a precedent as the first cannabis-derived medication to receive FDA approval, offering new hope for patients with severe forms of childhood epilepsy and tuberous sclerosis complex. With sales reaching a robust $736.4 million in 2022, Epidiolex’s success underscores the potential of cannabis in the pharmaceutical industry.

Beyond Epidiolex, Jazz Pharmaceuticals is actively exploring the therapeutic potential of cannabis with several other drugs in phase 2 clinical trials, targeting conditions such as autism spectrum disorders. This innovative approach to drug development, coupled with Jazz’s established portfolio of sleep-disorder and cancer treatments, paints a promising picture for the company’s future.

Investors looking to tap into the burgeoning field of cannabis-based pharmaceuticals will find Jazz Pharmaceuticals a compelling addition to their watchlist. With its pioneering spirit and a strong foundation in both cannabis and traditional pharmaceuticals, Jazz is well-positioned for continued growth and success in this dynamic sector.

Nvidia is Soaring! Here are the Top Alternatives to Ride the Wave

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Editorial Staff
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The hype around artificial intelligence (AI) continues to drive tech stocks to new heights, with Nvidia leading the charge. But is it too late to jump on the AI bandwagon? Fear not, as we delve into some promising alternatives that offer significant potential for growth.

Meta Platforms, Inc. (NASDAQ: META): Capitalizing on Double-Digit Growth

Despite its recent run-up, Meta remains an attractive investment option, according to Adam Coons, portfolio manager at Winthrop Capital Management. With projected revenue growth of 17% this year and impressive earnings per share growth of 35%, Meta’s valuation still appears compelling compared to its peers. Trading at multiples substantially lower than other tech giants like Amazon and Microsoft, Meta presents an enticing opportunity for investors seeking exposure to the AI space.

Alphabet Inc. (NASDAQ: GOOGL): Monetizing AI through Innovation

Another compelling alternative to Nvidia is Alphabet, parent company of Google. With a clear path to monetize AI through its advertising platform and subscription services like Gemini, Alphabet is well-positioned to benefit from the ongoing AI revolution. Additionally, Google’s dominance in the Android market provides a unique advantage for implementing new AI features and driving user engagement, further solidifying its position as a key player in the AI landscape.

Qualcomm Incorporated (NASDAQ: QCOM): On-Demand AI Winner

As AI continues to permeate various industries, Qualcomm emerges as a standout player in the on-device AI market. With a growing market opportunity across smartphones, PCs, autonomous vehicles, and IoT devices, Qualcomm is poised for long-term success. CFRA Research’s recent upgrade to a buy rating reflects its strong positioning in key growth areas, making it a compelling choice for investors seeking exposure to the AI revolution.

Micron Technology, Inc. (NASDAQ: MU): Paving the Way for Memory Chip Recovery

Amidst the AI boom, Micron stands out as a key player in the memory chip industry. Tethered to Nvidia’s graphics processing units and focusing on high-value AI servers, Micron is well-positioned to capitalize on the increasing demand for AI-driven technologies. With the potential for multiple expansion and upside ahead, Micron offers investors an opportunity to ride the wave of AI innovation.

In conclusion, while Nvidia continues to dominate the AI market, there are plenty of alternatives that offer compelling investment opportunities. From Meta and Alphabet to Qualcomm and Micron, these stocks present diverse options for investors looking to capitalize on the AI revolution.

Analyst Favorites for June: Where Strong Fundamentals Meet Bullish Technical Signals

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Editorial Staff
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Following a positive May, several stocks continue to stand out not just for their recent gains but for their strong potential moving forward. Piper Sandler’s analysis highlights a few stocks that excel across various research markers, including favorable macroeconomic conditions, robust fundamentals, and positive chart analysis. These stocks have all earned an ‘overweight’ rating, indicating significant confidence in their potential from the firm.

M&T Bank (NYSE: MTB) – Banking on Stability and Growth

M&T Bank has shown a commendable turnaround, reversing a prolonged downtrend to hit a fresh 52-week high on May 15. With a nearly 10% rise in 2024, the regional bank demonstrates solid resilience and growth prospects. Analyst Frank Schiraldi from Piper Sandler points out that M&T Bank has effectively managed its commercial real estate exposure while maintaining a healthy credit outlook, which makes its current discount an attractive entry point for investors. Moreover, Schiraldi highlights the bank’s strategy of leveraging its significant excess capital for aggressive buybacks, enhancing shareholder value.

Oracle (NYSE: ORCL) – Harnessing AI for Future Growth

Oracle has also captured attention with an 11% increase in its stock value in 2024. The company is well-regarded for its strong cash flow return on equity and above-average historical EPS growth. Analyst Brent Bracelin notes that Oracle stands to benefit greatly from the burgeoning demand for artificial intelligence, despite its slower start in the cloud infrastructure space. With AI cluster demand significantly outstripping supply, Oracle’s focus on accelerated computing could position it well for future advancements, making its stock an appealing choice for tech-focused investors.

Tractor Supply (NASDAQ: TSCO) – Leading Retail with Robust Performance

Tractor Supply has outperformed expectations with a remarkable surge of over 32% in 2024, reaching a 52-week high on May 20. The company is recognized for its exceptional cash flow profitability, which Piper Sandler’s analyst Peter Keith describes as best in class within the hardline and leisure retail segment. The firm’s macro select model identifies Tractor Supply as ideally suited for the current economic environment. Keith also echoes the company management’s outlook that deflationary pressures will be minimal this year, alleviating a significant concern for investors and underscoring the stock’s robust potential.

Insiders Are Buying These Names Hand Over Fist

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Editorial Staff
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There was notable insider buying in the final days of May, though, from lower-profile executives.

The biggest move came from two insiders at a small investment firm — Oxford Lane Capital — who combined to buy $50 million worth of the stock. That is a sizeable position for a company with a market cap below $2 billion.

Elsewhere, the $2.4 million buy from Petco director Cameron Breitner is worth highlighting because Breitner is a senior advisor with CVC Capital Partners, one of the company’s biggest shareholders. This insider activity could indicate confidence in their respective companies’ futures.

Here are the biggest insider buys, according to securities filings and VerityData:

Oxford Lane Capital (NASDAQ: OXLC)

  • CEO Jonathan Cohen and President Saul Rosenthal each bought 4.63 million shares at an average price of $5.40 for a total of $25 million.

FTAI Aviation (NASDAQ: FTAI)

  • CEO Joseph Adams Jr. bought 59,000 shares at an average price of $82.00 for a total of $4.84 million. This reflects shares purchased in an underwritten public offering that closed Thursday.

Petco Health & Wellness (NASDAQ: WOOF)

  • Director Cameron Breitner bought 750,000 shares at an average price of $3.14 for a total of $2.35 million.

Agree Realty (NYSE: ADC)

  • Director John Rakolta Jr. bought 20,000 shares at an average price of $59.32 for a total of $1.19 million.

Claros Mortgage (NYSE: CMTG)

  • CEO Richard Mack bought 160,000 shares at an average price of $7.20 for a total of $1.15 million. Shares were down nearly 17% over the prior three months.

This insider buying activity might signal strong confidence in the future prospects of these companies. Stay informed and consider how these insider moves might influence your investment decisions.

Bear Watch Weekly: Stocks to Sideline Now

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Editorial Staff
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The right stocks can make you rich and change your life.

The wrong stocks, though… They can do a whole lot more than just “underperform.” If only! They can eviscerate your wealth, bleeding out your hard-won profits.

They’re pure portfolio poison.

Surprisingly, not many investors want to talk about this. You certainly don’t hear about the danger in the mainstream media – until it’s too late.

That’s not to suggest they’re obscure companies – some of the “toxic stocks” I’m going to name for you are in fact regularly in the headlines for other reasons, often in glowing terms.

I’m going to run down the list and give you the chance to learn the names of three companies I think everyone should own instead.

But first, if you own any or all of these “toxic stocks,” sell them today…

Ameren Corporation (NYSE: AEE)

Ameren Corporation, a staple in the American energy sector known for its robust 3.8% dividend yield. However, recent developments suggest caution. Over the past year, Ameren’s stock has declined by 12%, a drop that may not just be a temporary dip but a reflection of deeper challenges.

A critical issue for Ameren is its ongoing reliance on coal power plants. While the company is taking commendable steps to phase out its largest and most polluting coal plants, this transition requires significant capital investment. Such investments are expected to strain financial performance in the near term, potentially stifling stock growth.

Recent quarters have already shown a decline in revenues and net income, signaling possible trouble ahead. This financial downturn could prompt a selloff, driving the stock price even lower. Given these factors, it seems prudent to place Ameren on the sell list until it stabilizes, after which it might again become a viable option for environmentally and financially forward-looking portfolios.

CrowdStrike Holdings (NASDAQ: CRWD)

CrowdStrike Holdings stands out as a top-tier player in the cybersecurity sector, known for its robust cloud-delivered security solutions. Yet, despite its strong fundamentals, caution is warranted with CRWD stock at this juncture.

Over the past year, CRWD has seen an impressive 100% surge in its stock price, pushing its valuations into potentially precarious territory. Currently, the stock is trading at a forward P/E ratio of 80.7. Such a high valuation suggests there might be substantial downside risk, making it prudent to hold off on new investments until the price becomes more reasonable.

While CrowdStrike’s financial health remains solid—evidenced by a forecasted EPS growth of 25% next year and a free cash flow of over $1 billion—the stock’s high price-earnings-to-growth ratio (over 3) indicates that the growth potential could already be well-reflected in the current stock price.

Investors might consider waiting for a more attractive entry point before increasing their stakes in CRWD, as the current market price leaves little room for error. This strategic patience could pay off, especially in a market that rewards prudent valuation assessments.

Altair Engineering (NASDAQ: ALTR)

Altair Engineering is a company at the forefront of software and cloud solutions in simulation, design, and data analytics. Despite its solid position in an attractive sector, there are concerns that now may be a prudent time to be cautious with ALTR stock.

Currently, Altair’s stock trades near its 52-week highs, supported by a forward P/E ratio of 71. This valuation could be considered stretched, especially given the company’s recent performance and future revenue growth projections. In Q1 2024, Altair reported a modest year-on-year revenue growth of 4.1% to $172.9 million and has set full-year revenue growth targets of only 6.4% to 8%.

While the company boasts robust free cash flow, which reached $70.7 million in the first quarter, and anticipates an annualized FCF of nearly $300 million, this financial health might not fully justify the high valuation at current stock prices. Given these factors, a 20% to 30% correction in ALTR stock could be on the horizon, making it a candidate for our avoid list until the valuation aligns more closely with growth expectations.

Insiders Are Dumping Shares of These Names, Should You?

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Editorial Staff
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General Motors CEO Mary Barra and Salesforce CEO Marc Benioff both sold millions of dollars worth of their own stock in the waning days of May, according to securities filings and information compiled by VerityData. Barra sold more than $27 million worth of stock on May 28, joining several other GM insiders who have done similar trades this year. Meanwhile, Benioff sold more than $12 million worth of shares over the course of several days.

Both execs made the sale as part of 10b5-1 trading plans. Those plans are filed with regulators ahead of time to set out when an executive will trade shares in the coming months and years.

Benioff’s sales in this data summary from Verity took place on May 24, 28, and 29. The Salesforce CEO had been selling stock consistently over recent periods, and subsequent filings showed that he made another sale on May 30. Salesforce released its first-quarter report after the market closed on May 29. The stock fell more than 19% the following day.

Insider buying and selling is tracked closely by many professional fund managers. The idea is that these trades could possibly be a signal about what an exec or board member thinks of the direction of the company or the valuation of the stock.

Here are the biggest insider sales in the final days of May, according to VerityData and securities filings:

  • General Motors: CEO Barra sold 626,300 shares at an average price of $43.46 for a total of $27.22 million.
  • Salesforce: CEO Benioff sold 45,000 shares at an average price of $270.70 for a total of $12.18 million.
  • Squarespace: CEO Anthony Casalena sold 135,100 shares at an average price of $43.50 for a total of $5.88 million.
  • Applied Materials: CFO Brice Hill sold 20,000 shares at an average price of $222.34 for a total of $4.45 million.
  • Texas Roadhouse: CEO Gerald Morgan sold 15,000 shares at an average price of $171.70 for a total of $2.58 million.

 Three Surprising Growth Stocks Set to Surge

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Editorial Staff
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Recent market turbulence has prompted many investors to reconsider their strategies, especially when it comes to growth stocks. Although growth stocks are generally more expensive and don’t pay dividends like value stocks, they still offer significant opportunities for those who choose wisely.

In the current environment, it’s crucial to focus on quality within the growth sector. Look for companies that are not only growing rapidly but are also doing so with strong fundamentals. These include substantial free cash flow, low levels of debt, consistent earnings, a solid balance sheet, and a business model that can sustain over the next decade.

Valuation should be a key consideration in any investment decision. It’s important to understand the true value of a stock, avoiding investments based purely on fear of missing out or an appealing narrative without substance. Instead, prioritize stocks that demonstrate actual revenue and earnings growth.

Here are three stocks that I believe are positioned well and worth considering:

PayPal Holdings (PYPL) 

Despite being down significantly from its peak in 2021, PayPal appears undervalued, especially within the fintech and digital wallets sector. The stock has dipped by about 3% over the last year, which might be an attractive entry point. The company has recently adjusted its profit expectations for 2024 from flat to a mid-to-high single-digit percentage growth, indicating a positive trajectory. Its investment in Venmo debit and credit cards plays a critical role in its overall growth strategy, helping to solidify its user base.

SS&C Technologies Holdings Inc:(SSNC)

As a major player in the software-as-a-service (SaaS) industry, SS&C Technologies benefits from having a significant market share in a somewhat duopolistic field. The company controls a vast amount of valuable data, which is essential both from an investment security and a user engagement perspective. Looking forward, its role as a major data provider is likely to be increasingly important. The stock has gained about 14% over the past year, and analysts are optimistic about its future, suggesting potential for further gains.

Moody’s Corp  (MCO) 

Known for its comprehensive data capabilities and increasing use of artificial intelligence to enhance data utilization, Moody’s has shown strong performance. The company recently exceeded Wall Street’s profit estimates, spurred by high demand for its offerings. Over the past year, the stock has increased by roughly 30%. Although the upside potential according to analysts is modest, the stability and steady growth make it an appealing choice for investors seeking reliable returns.

These stocks represent well-rounded choices for those looking to diversify their portfolio with growth stocks that not only promise but also deliver growth backed by robust fundamentals.

Strategic Science: Biotech Stocks with Promising Prospects

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Editorial Staff
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Navigating the biotech sector requires a tolerance for risk, as the outcome of clinical trials and FDA approvals can dramatically swing stock prices. Yet, for those who are game, the rewards can be substantial, making biotech stocks an exciting prospect for the daring investor.

This month, we’ve honed in on three biotech companies poised for significant movements. Each has made promising progress in developing innovative treatments that could transform medical practice and patient care. These companies stand out not only for their scientific breakthroughs but also for their strategic positioning in the market, which could lead to substantial gains.

Read on as we explore these firms’ latest advancements, examining the potential impacts of their upcoming products and what these developments could mean for investors. Whether you’re a seasoned biotech investor or considering your first foray into this high-stakes field, our watchlist offers a valuable snapshot of where to look next in the biotech sector.

Iovance Biotherapeutics (NASDAQ: IOVA) – A Leader in TIL Therapy with Promising Horizons

Iovance Biotherapeutics stands out in the biotech arena, particularly for its innovative approach to cancer treatment through tumor-infiltrating lymphocyte (TIL) therapy. This technique capitalizes on the body’s natural defenses by enhancing white blood cells that combat cancer. Iovance’s process involves extracting these cells, amplifying their number outside the body, and reintroducing them to effectively fight cancerous cells.

The company achieved a significant milestone earlier this year with the FDA approval of Amtagvi, a targeted treatment for melanoma affecting a niche patient group. This approval not only bolsters the company’s credibility but also paves the way for future therapies that could benefit from similar regulatory green lights.

Besides Amtagvi, Iovance continues to generate revenue from Proleukin, another of its market-ready therapies. Although still on the path to profitability, the potential revenue streams from these innovative treatments present a compelling case for investors. Buying into Iovance now could be a strategic move for those looking to invest in a company with promising future gains, driven by groundbreaking treatments and a solid development pipeline.

Exelixis, Inc. (NASDAQ: EXEL) – A Profitable Biotech with Strong Partnerships

Exelixis, Inc. is a standout in the biotech sector, particularly for its financial robustness and successful portfolio of cancer treatments. Unlike many biotech companies that struggle to reach profitability, Exelixis has been consistently profitable for the past six years, a testament to its effective management and compelling product offerings.

The company’s flagship product, Cabometyx, has been a key driver of its success. Developed in partnership with Bristol Myers Squibb, Cabometyx treats renal cell carcinoma (RCC) and hepatocellular carcinoma (HC), two prevalent forms of kidney and liver cancer. This partnership not only boosts Exelixis’s credibility but also enhances its market reach and financial stability.

Exelixis’s strong financial position enables ongoing investment in research and development, broadening its pipeline and potentially leading to new breakthroughs. For investors looking to tap into the biotech sector while mitigating risk, Exelixis offers a compelling blend of profitability, proven market presence, and strategic growth opportunities. This combination makes Exelixis a safer bet in a field known for its high volatility.

Recursion Pharmaceuticals (NASDAQ: RXRX) – Pioneering AI-Driven Drug Development

Recursion Pharmaceuticals distinguishes itself within the biotech landscape not only through its drug development but also through its innovative integration of technology. At the heart of its operations is the Recursion Operating System, a platform that leverages advanced data analytics and artificial intelligence to streamline the drug discovery and development process.

This technology-centric approach allows Recursion to accelerate the production and testing of therapies, reducing costs and enhancing efficiency—key advantages in the competitive biotech field. Additionally, the company capitalizes on its technological prowess by selling its software, providing a diversified revenue stream alongside its pharmaceutical ventures.

Currently, Recursion is making significant strides with REC-4881, a promising candidate in Phase 2 trials for treating Familial Adenomatous Polyposis and cancer, with the trial set to conclude in 2027. While still navigating its path to profitability, Recursion’s innovative model and revenue growth from its software sales position it uniquely for potential explosive growth, especially if its clinical trials yield positive outcomes and its software continues to gain traction in mainstream drug development. For investors open to embracing a tech-forward approach in biotech, Recursion offers an intriguing opportunity.

Uranium Stocks Poised for a Green Surge

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Editorial Staff
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As global energy markets shift towards greener alternatives, uranium has emerged as a pivotal element in the nuclear power resurgence. The recent U.S. Congressional ban on Russian uranium imports, unlocking about $2.7 billion to expand domestic nuclear fuel production, significantly catalyzes this trend. Further buoyed by MarketWatch.com’s report that this ban could push uranium prices back above $100 per pound, the sector is seeing a tightening supply that could propel market values higher.

Moreover, the support for nuclear power is expanding globally, evidenced by the commitments made at the 28th United Nations Climate Change Conference (COP28), where multiple nations signed a declaration to triple nuclear energy by 2050. This is in response to growing demand, which, according to NexGen Energy, is expected to jump 127% by 2030 and potentially create a 240-million-pound deficit by 2040. Tim Gitzel, CEO of Cameco, highlighted these dynamics stating, “Market tightness caused by supply chain challenges, ongoing mine depletion, declining secondary supplies, and a decade of underinvestment amid low market prices likely will persist well into the next decade,” as reported by Seeking Alpha.

Denison Mines (NYSEAMERICAN: DNN) – A Solid Bet in Uranium’s Bull Market

Denison Mines has been charting a strong course in the uranium sector, marked by a significant uptrend since June 2023. The company has consistently maintained robust positions at its 50- and 200-day moving averages, recently rebounding from a pullback to about $2.02, and now trading at $2.10 with the potential to test $3 in the near term. David Cates, President and CEO of Denison, remarked on the favorable market conditions, “Denison’s portfolio of uranium reserves, resources, and physical holdings has greatly appreciated in value through late 2023 and into early 2024, as positive sentiment in the uranium and nuclear energy markets has sustained and uranium prices have rapidly increased.” He further noted the strategic advantage of their uncommitted uranium production and holdings at a time of expected market scarcity, positioning Denison Mines favorably for future gains.

NexGen Energy (NYSE: NXE) – Developing the Future’s Largest Low-Cost Uranium Mine

NexGen Energy is a notable player in the uranium market, focusing on developing the Rook I Project, slated to become the world’s largest low-cost uranium mine. After a dip to $7, the stock found strong support and is pivoting higher, currently at $7.61 with an eye towards retesting its previous high of $8.88 and advancing towards $10. The project, now in the final stages of permitting, could soon move to construction, backed by approximately $930 million in cash and liquid assets. The company’s CEO emphasized the strategic importance of the Rook I project in the growing nuclear energy sector, positioning NexGen Energy at the forefront of addressing the burgeoning global demand for uranium.

Uranium Royalty (NASDAQ: UROY) – A Unique Investment in Uranium Streaming

Uranium Royalty stands out as the world’s only uranium-focused royalty and streaming company, offering investors a unique way to participate in the uranium market without the direct operational risks. Despite recent fluctuations, with the stock dropping to $2.20 and now recovering to $2.65, the outlook remains positive. Analysts at H.C. Wainwright have reiterated a buy rating with a target of $7.70, citing the company’s strategic acquisitions and trading activities that provide strong positioning within the industry. As the uranium supply tightens and prices continue to rise, Uranium Royalty is well-placed to capitalize on these trends and deliver substantial returns to its stakeholders.

These three companies represent strategic entry points into the uranium market, each positioned to benefit from the escalating global shift towards nuclear energy and the ensuing market dynamics. As demand surges and supply tightens, investing in these stocks could offer substantial returns amidst the growing green energy movement.

Three Hydrogen Stocks to Buy Now

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Editorial Staff
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0

Hydrogen – that volatile gas that, when mishandled, can cause quite a disaster. But, let’s not forget, it’s also pegged as a clean, carbon-free fuel source that’s expected to play a crucial role in our energy future. Investing in hydrogen stocks? Well, that’s been a bit like handling the gas itself – risky, with potential for explosive gains (figuratively speaking, of course).

The past couple of years haven’t been kind to some of the leading hydrogen companies, with share prices taking a nosedive. It’s enough to make anyone think twice about diving into this sector. However, for those willing to navigate the risks, the rewards could be substantial. Here are three hydrogen investments that stand out in this challenging yet promising landscape.

1. Global X Hydrogen ETF (NASDAQ:HYDR)

Diving headfirst into individual hydrogen stocks might not be everyone’s cup of tea, especially given the industry’s nascent stage. That’s where the Global X Hydrogen ETF comes into play. This ETF offers a diversified portfolio of 26 companies involved in the hydrogen space, mixing high-risk pureplay names with established industrial giants. It’s a smart way to spread your bets across the board.

With HYDR shares currently down 55% over the past year and a staggering 75% since its launch, it might seem like a tough sell. But, for those looking at the bigger picture, this dip could represent a golden opportunity. As the hydrogen market rebounds, HYDR is well-positioned to capture the upswing.

2. Air Products & Chemicals (NYSE:APD)

Air Products & Chemicals isn’t just another player in the hydrogen game; it’s a seasoned veteran with over sixty years in the business. With operations in more than 20 countries and a vast hydrogen plant network, APD is a global leader in hydrogen production and distribution.

Recent earnings may have disappointed, sending APD stock to 52-week lows, but the company’s outlook for 2024 remains strong. Beyond its hydrogen operations, APD boasts a diversified gas business that continues to be profitable, not to mention a solid 3.1% dividend yield. For those looking to invest in a company with a proven track record in hydrogen, APD presents a compelling opportunity.

3. Linde (NASDAQ:LIN)

Linde, hailing from the U.K., is another industrial gas giant with a foot firmly planted in the hydrogen sector. Unlike APD, Linde’s stock has been on an upward trajectory, reaching new highs thanks to solid earnings. While it might not be the bargain buy of the moment, Linde’s premium is justified by its ambitious hydrogen projects and turnkey gas plant solutions.

As Linde expands its hydrogen production capabilities, like the recent plant expansion in Alabama, it’s setting itself up to profit from the broader adoption of hydrogen as a fuel. Investing in LIN stock offers a lower-risk avenue to tap into the hydrogen market’s growth potential.

Wrapping Up

Hydrogen’s role in our energy future is becoming increasingly clear, and despite the sector’s volatility, there are strategic ways to invest in this clean fuel source. Whether you’re looking for diversified exposure through an ETF, a veteran player with a solid dividend, or a company expanding its hydrogen footprint, there’s an option out there for you.

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