Investors may want to consider uranium stocks.

Just days ago, related stocks were nuked after CNN said the U.S. was looking into reports of a leak at a Chinese nuclear power plant. However, it appears investors overreacted.

“Monday’s drop looks like an outsize reaction for several reasons,” noted The Wall Street Journal’s Jinjoo Lee. “Uranium mining companies tend to operate on multiyear supply contracts with utilities, so there is little risk that a nuclear power plant would immediately pull back buying from these mining companies.”

China denied a leak, but did admit fuel rods had been damaged in a reactor.

There are other reasons to keep your eyes on these uranium stocks. For example, oversold uranium stocks could get a boost from President Biden’s push for a potential uranium reserve.

Plus, global demand for uranium was close to 180 million pounds in 2020. Market experts believe that this figure is set to grow to almost 200 million pounds within the next five years according to Insider Monkey contributor Usman Kabir.

With uranium likely to glow again, here are three of the top ways to trade the boom.

  • Cameco Corp. (NYSE:CCJ)
  • Uranium Energy Corp. (NYSE:UEC)
  • Global X Uranium ETF (NYSE:URA)
  • Top Uranium Stocks: Cameco Corp. (CCJ)

    Over the last few days, shares of Cameco fell from a high of about $22 to $19.80, which puts it right around its 50-day moving average.

    With the overreaction to China’s news, and Biden’s reserve interest, I’d like to see the CCJ stock back to $22, immediate-term. Longer-term, I’d like to see the uranium stock closer to $30 a share.

    “Globally, we see demand for both traditional and non-traditional uses of nuclear power growing as the increasing focus on electrification while phasing out carbon intensive sources of energy continues to take hold,” said Tim Gitzel, Cameco’s president and CEO, in a press release.

    The company recently restarted its Cigar Lake mine in April, which has to help. It also finalized and executed nine million pounds of uranium in long-term sales contracts. Plus, it ended its first quarter with $1 billion in cash.

    Uranium Energy Corp. (UEC)

    Uranium Energy Corp. was another top stock nuked by CNN’s China news.

    The stock recently fell from a high of about $3.60 to a recent low of $2.83, which puts it at triple bottom support dating back to April.

    From here, I’d like to see the UEC stock retest its prior high, and potentially double, near-term.

    Most recently, the company announced it acquired another 200,000 pounds of uranium. Plus, it announced it acquired an additional one million shares of Uranium Royalty Corp. (NASDAQ:UROY).

    Canaccord Genuity analyst Katie Lachapelle has a buy rating on the UEC stock with a price target of $3.75 a share, which doesn’t hurt.

    In addition, the company has projects in Texas, Wyoming, Paraguay, New Mexico, Colorado, Arizona, and in Canada.

    All of that, coupled with the China overreaction, and interest from Joe Biden, could push the UEC stock to higher highs.

    Global X Uranium ETF (URA)

    One of the best ways to diversify your portfolio at less cost is with an ETF, like the Global X Uranium ETF.

    At just $21.50 a share, the ETF offers exposure to companies involved with extraction, refining, exploration, and manufacturing of uranium.

    Some of its top holdings include Cameco Corp., NexGen Ltd. (NYSE:NXE), Denison Mines Corp. (NYSE:DNN), Energy Fuels Inc. (NYSE:UUUU), Paladin Energy (OTC:PALAF), and UR-Energy Inc. (NYSE:URG).

    If you were to buy each of its holdings, you’d pay tens of thousands of dollars. With the ETF, not only does it provide diversification among top names, it does so at less cost.

    In addition, the URA ETF has become technically oversold a its 50-day moving average, where it has historically bounced.

    fter pulling back from about $24 to $21.18, I’d like to see the ETF again challenge its prior high, and potentially move to $30 a share. It will open this morning at about $21.52.

    With demand, the overreaction, and a potential Biden uranium reserve, there’s no reason this stock can’t push to higher highs.

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