Energy Fuels Stock Gains Momentum from US Nuclear Fuel Push

A substantial federal investment program is reshaping the American nuclear fuel landscape, providing a powerful tailwind for domestic uranium equities. Energy Fuels Inc., a leading US uranium producer, is emerging as a key potential beneficiary, with its shares rallying on the broader sector momentum. The current market focus is less on near-term earnings and more on the company's prospective role in a strategically reorganized national fuel supply chain.

The recent surge in share prices was catalyzed by the US Department of Energy's (DOE) formal confirmation of a $2.7 billion investment to establish a domestic nuclear fuel supply chain. These funds are allocated for contracts to expand capacity for low-enriched uranium (LEU) and high-assay low-enriched uranium (HALEU). The awarded contracts went to Centrus Energy, Orano, and General Matter—a clear indication that Washington aims to revitalize the complete US fuel cycle, from mining to enrichment, and reduce dependence on Russian sources.

While Energy Fuels is not a direct participant in these specific enrichment contracts, the market interprets the DOE initiative as a structural boost for the entire North American uranium sector. The company, as a premier US producer of natural uranium (U3O8), is viewed as a critical potential supplier for the very facilities now receiving federal funding for expansion. This geopolitical backdrop intensified following US military actions in Venezuela in early January, sharpening the focus on securing energy-critical and defense-related raw materials.

Valuation Premium and Insider Activity

The bullish sentiment has propelled valuation metrics significantly higher. Compared to peers like Cameco and Centrus Energy, Energy Fuels currently commands a noticeable premium based on its price-to-sales ratio. This elevated valuation reflects future expectations rather than current profitability, factoring in:
* Accelerated growth from a potentially larger role in US uranium supply.
* Additional potential from its parallel development of a rare earth elements supply chain outside of China.
* Sustained political support for nuclear energy and Small Modular Reactors (SMRs) across party lines in the United States.

Should investors sell immediately? Or is it worth buying Energy Fuels?

However, this strong price performance has not gone unnoticed by some major stakeholders. Regulatory filings show that Executive Vice President Timothy James Carstens sold shares worth approximately $889,000 in December. Furthermore, the institutional investor Stanley Laman Group reduced its position by 37.7% in the third quarter of 2025. These moves suggest some large investors are capitalizing on the recent strength to realize gains.

Technical Picture and Forward Catalysts

From a chart perspective, the outlook has brightened considerably since the start of the year. The stock is trading decisively above its key 50, 100, and 200-day moving averages. Yesterday's closing price of $18.43 sits roughly 38% above the 50-day average. Over a twelve-month period, the gain amounts to nearly 230%, highlighting the powerful revaluation dynamic.

Following a rapid advance of over 20% in just two trading sessions, the shares appear extended in the short term. The 14-day Relative Strength Index (RSI) reading of 65.9 is in the upper neutral range, approaching technically overbought territory. The stock remains well below its 52-week high of $22.59, yet trades multiples above its low of $3.14, underscoring the high volatility statistically evidenced by an annualized figure of approximately 93%.

The primary focus now shifts to how Energy Fuels' management will concretely define its role within the newly funded US fuel ecosystem. Forthcoming announcements regarding how the company intends to supply material for the subsidized enrichment projects, along with updates on its rare earths initiatives, will be crucial in determining whether the current valuation premium can be sustained or expanded. Equally important will be observing if—and by how much—analysts revise their consensus price targets, which have been significantly lower, to account for the new political framework and shifting market expectations.