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UEC’s stock has gained 84.1% in price so far this year and 62% over the past month. This can be attributed primarily to uranium prices hitting an eight-year high this month, following the recent launch of an exchange-traded trust by Sprott Asset Management LP and the growing utilization of nuclear power as a low carbon emission energy option.
But UEC’s stock is currently trading 20.7% below its 52-week high of $3.77. Moreover, COVID-19 pandemic-related supply disruptions on uranium mining and issues with processing activities could make it challenging to meet the growing demand. And the industry’s cyclical nature only makes matters worse. This volatile backdrop could cause the stock to experience a downtrend.
