Nuclear energy has often been touted as the best clean energy, and prices of uranium - a key component for making nuclear energy - have risen due to a combination of increased demand and ongoing supply constraints. Amid ongoing geopolitical tensions, there has been another interesting development that could affect uranium prices and related stocks. 

Specifically, the Senate has approved legislation banning the import of uranium from Russia amid its two-year war with Ukraine. Russia supplies nearly 25% of the uranium used by the U.S. fleet of 90 commercial reactors, providing a significant source of income for Moscow. The bill, which was passed by the U.S. House back in December, prohibits imports from Russia 90 days after its passage, and allows for temporary waivers until January 2028. 

With the market getting consistently tighter, now's an opportune time to take a look at two domestic uranium producers that analysts recommend.

Uranium Stock #1: Energy Fuels Inc. 

The first stock on the list is Energy Fuels Inc. (UUUU). The Colorado-based company has been producing 2/3rd of U.S. uranium production capacity for the past several years. They engage in the exploration and evaluation of uranium and vanadium sites. Founded back in 1987, it operates in the Nicholas Ranch, White Mesa Mill Project, and Alta Mesa. 

Energy Fuel stock has dropped 22.6% this year, but has gained about 7% since setting a 52-week low of $5.16 at the end of April.

The company released its full-year 2023 results in late February, posting revenue of $37.93 million, a 202% increase from the previous year. Net income reached a record $99.76 million, or $0.63 per share, and Energy Fuels ended the year with a cash reserve of $57.45 million. 

Stay tuned this next week, when the company is set to release its 1Q earnings results, with an average analyst estimate of $0.02 per share. 

Energy Fuels is a solid pick, according to analysts, with a consensus “Strong Buy” rating. The mean price target of $9.74 indicates an upside potential of 75.8% from current levels. Currently, among the 7 analysts tracking the stock, 6 have a “Strong Buy” rating and the other analyst has a “Moderate Buy” rating. 

Uranium Stock #2: Centrus Energy Corp.

Centrus Energy Corp. (LEU) is a nuclear fuel and service provider. It works in two segments: first is the low-enriched uranium (LEU) and the other is providing technical solutions. The majority of its operations are focusedaround its LEU segment, with operations in the U.S., Japan, and Belgium, among other countries. Formerly known as USEC Inc. and founded in 1998, it changed its name to Centrus Energy Corp. back in September 2014.  

Shares of LEU have pulled back 18% YTD, but they've rallied sharply in recent sessions, up 20% already from their mid-March lows. 

Centrus released its 4Q and full-year results on Feb. 8, with revenue coming in at $103.6 million for the quarter, beating estimates by 69.7%. Similarly, earnings of $3.58 per share comfortably surpassed analysts' $0.78 per share estimation.  

On a full-year basis, revenue came in at $320.2 million - a 9% increase YoY from $293.8 million in 2022 - while earnings of $5.44 per share were up sharply from the $3.38 reported in 2022. 

LEU is expected to report its Q1 results on May 7 this week, with analysts looking for a profit of $0.50 per share, on average.

Analysts are bullish on the uranium supplier, with a unanimous "Strong Buy” rating from all three analysts covering the stock, and a mean price target of $68.50. That indicates a 50.6% upside potential from current levels.