Energy Penny Stocks To Watch For February 2021
While the top Reddit penny stocks may include silver names today, there’s still plenty of other industries to track. Should that mean to ignore silver altogether? Absolutely not, and when we talk about energy stocks, silver has its own role to play. One of the beauties about energy, as a whole, is that there’s an entire ecosystem to think about. We’re not just talking about the power supply companies. We’re also talking about everything involved to actually produce the power for everything from industrial purposes to electric vehicles.
So, rest assured, those looking at silver penny stocks today may have unwittingly gained some exposure to alternative energy as well. But what’s a driving force right now? Probably one of the largest influences on renewable and alternative energy stocks is the Biden Administration.
“Already, 84% of all new electric capacity planned to come onto the electric grid this year is clean energy,” Biden said in a Jan. 27 briefing.
Biden also explained that under his administration, 1.5 million new energy-efficient homes and public housing units will be built. These “are going to benefit communities three times over: one, by alleviating the affordable housing crisis; two, by increasing energy efficiency; and, three, by reducing the racial wealth gap linked to home ownership.”
So, with such a push for a future that has alternative energy as a linchpin, traders have begun searching for companies in the space. Furthermore, there is still a lot of attention on traditional energy as well. This is likely what will be used to build the infrastructure needed for a green energy future. The biggest question now is will they be the best penny stocks to buy right now or should you avoid them for the time being?
Energy Penny Stocks To Watch
- Energy Fuels Inc. (NYSE: UUUU)
- NexGen Energy Ltd (NYSE: NXE)
- Denison Mines Corp. (NYSE: DNN)
- United States Antimony Corp. (NYSE: UAMY)
Energy Fuels Inc.
One of the hot topics this week is uranium. Traders have circulated some insight apparently from B of A discussing 100-year licenses for nuclear plants. The information comes as a flurry of attention has been on silver stocks for most of the day. However, with the latest speculation, we now see several uranium stocks making moves.
Energy Fuels is one of these stocks. Readers will likely be familiar with UUUU stock, as we’ve discussed it many times since last summer. Late last year, heightened demand for uranium in the U.S. as part of a national strategic reserve boost helped bring focus to uranium stocks. In December of 2020, the U.S. Senate Committee on Environment and Public Works approved a bill that would increase the U.S. stockpile of uranium. Since that time, the production of nuclear ore has increased substantially.
There’s also been a flood of Form 4s filed over the last few weeks showing share acquisitions by company leadership. Analysts have also become more bullish on the company. Last week, H.C. Wainwright adjusted its price target from $2.75 to $4.50, reiterating a Buy on the stock.
NexGen Energy Ltd.
Another company we’ve talked about recently in light of recent nuclear developments is NexGen. Last month, the company opened the new year strongly and continued its own multi-quarter bull trend. In fact, since dropping to 50 cents during the March sell-off, shares have rebounded to brand new 52-week highs this week. The NXE stock price reached highs of $3.14 this week, marking a move of over 500% in less than 1 year.
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Institutional interest has also been building in the stock. Famed Asian investor Li Ka Shing reported a 12.2% stake in the company in January. Similar to Energy Fuels, analysts are also growing more bullish on the stock. Last month, both Raymond James and Canaccord Genuity boosted their price targets to $5. Right now, Raymond James has an Outperform rating on the stock, with Canaccord giving a Buy.
As a producer of uranium, NexGen Energy could also benefit from the incoming administration. Joe Biden has stated that he wishes to bring the U.S. toward sustainable energy in the long term. While nuclear energy is not yet the primary choice in the U.S., it has immense long-term potential. His climate plan labels nuclear as a zero-carbon technology that plays a role in climate change. Biden has said he will look at ways to overcome the cost, safety, and waste disposal challenges for nuclear power.
Denison Mines Corp.
Denison also has ties into the budding uranium industry. It has been one of the top alternative energy penny stocks to watch for a while. The company is part of the nuclear energy production ecosystem through its uranium mining operations. One of the biggest things we pointed out was Denison’s use of its in-situ recovery mining method.
This allows the company to implement a streamlined process for uranium recovery. The mining method has the potential of generating optimal output by other means. So it is planning on deploying this strategy at its current Tthe Heldeth Tú é deposit.
Last week, Denison reported results from the 2020 regional exploration program at its 90% owned Wheeler River Uranium Project. This included the discovery of new high-grade unconformity-hosted uranium mineralization.
Andy Yackulic, P. Geo., Denison’s Director, Exploration, explained, “The new high-grade mineralization at K West was discovered with our second last drill hole of the season. As a result, there remains potential for us to delineate a broader mineralized zone…The exploration team is also very interested in the presence of high-grade nickel mineralization along the margins of the uranium mineralization.”
With renewed excitement in nuclear and uranium stocks, DNN could be one to watch right now.
United States Antimony Corp.
When it comes to silver mining stocks to watch, United States Antimony is on the list. But if you’ve read about this company on PennyStocks.com before, you know it’s more than just that. It has been one of the companies wrapped in the electric vehicle industry along with renewable energy. Why? US Antimony has several mining operations underway in North America, including the Bear River Zeolite and Precious Metals facility. The company produces antimony oxide, antimony metal, gold, silver, and zeolite. These have a wide variety of applications. Zeolite, in particular, has been highlighted as a potential replacement for certain battery applications.
Last year, CleanTechnica* put out information on GM. Tim Grewe, head of General Motors’ (NYSE: GM) global electrification and battery systems, referenced the future of electric vehicle batteries. He said that GM is moving forward with zero-cobalt and zero-nickel cells. He said the company is experimenting with electrolyte and zeolite additives “that will extend their service life even more.”
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This week the company entered into a securities purchase agreement with certain institutional investors. It provides gross proceeds of $10.7 million at $0.70 per share in a registered direct offering. While shares dipped early in the Monday session, UAMY stock managed to rebound before the lunch hour.
Is Alternative Energy Here To Stay?
With the obvious boom that the Biden Administration has brought to alternative energy, it will be an interesting next 4 years. The push for things like solar and electric-powered vehicles is clear. But undertones of building upon a nuclear power position of strength in the global economy may also be firming up. With this as the backdrop, traders are obviously looking for a new round of energy penny stocks. Will these be on your February watch list?
End Notes:
CleanTechnica: https://cleantechnica. com/2020/05/23/gm-ev-batteries-will-last-for-1-million-miles-have-600-mile-range/
