Should You Buy Hold or Sell UUUU Stock Following Its Impressive 194 Percent Surge in Three Months

Energy Fuels Inc. (UUUU) has seen a staggering surge in its stock price, climbing 194% over the last three months. This rise far exceeds the growth observed in the non-ferrous mining industry, which only saw an 11.2% increase. It also outperforms the 7.5% gain in the Zacks Basic Materials sector and the S&P 500’s 9.4% growth.

UUUU Stock: Performance Comparison

The significant rise in UUUU’s stock has eclipsed other industry players such as Centrus Energy, Uranium Energy, and Cameco. Currently, Energy Fuels’ stock is trading well above its 50-day and 200-day simple moving averages, indicating a positive market trend.

Rare Earth Elements and Growth Prospects

Energy Fuels has made notable progress in the rare earth elements market. In September, it successfully transformed high-purity neodymium-praseodymium oxide into commercial-scale magnets, in collaboration with POSCO International Corporation. This success represents a critical step toward establishing a supply chain independent of Chinese resources. Additionally, the company plans to deliver high-purity terbium oxide samples by the end of 2025 and is working on expanding production capacities.

Ongoing Projects

• White Mesa Mill in Utah: Development of dysprosium and terbium separation capacities.
• Donald Project in Australia: Potential production start by 2027.
• Toliara Project in Madagascar and Bahia Project in Brazil: Rich in light and heavy rare earth oxides.

Uranium Production and Sales Outlook

During Q2 2025, Energy Fuels mined 665,000 pounds of uranium from its Pinyon Plain, La Sal, and Pandora mines. Notably, the Pinyon Plain mine produced 635,000 pounds of uranium, attributed to exceptional ore grades, forecasting it as America’s highest-grade uranium deposit. The company projects uranium sales to rise in 2025, aiming for 350,000 pounds, with expectations of further increases in 2026. However, a 55% decline in revenue was recorded, attributed to timing issues and strategic inventory retention.

Financial Health and Market Position

As of June 30, 2025, Energy Fuels held $253.23 million in working capital, including $71.5 million in cash. The company maintains a debt-free status, unlike its peers Centrus Energy and Cameco, which have notable debt-to-capital ratios. The forward price-to-sales ratio at 35.68X signals a stretched valuation, with expectations of a 2025 loss and a minor earning projected in 2026.

Uranium Market and Future Expectations

Uranium prices have been volatile, yet recent increases offer a promising outlook backed by global demand for nuclear energy and supply constraints. Energy Fuels is strategically positioned for growth, strengthened by its innovations and debt-free balance sheet.

For potential investors, while current shareholders might hold their positions, new investors should consider UUUU’s high valuation before making any decisions.