Momentum Meets Value: Centrus Energy Stock Could Be A Good Buy

We think Centrus Energy (LEU) stock might be a good investment candidate. Why? Because you get strong margin, low-debt capital structure, and strong momentum – with room to run as the stock is meaningfully below its 52-week high.

There Are Several Things In Favor Of LEU Stock

LEU is up 291% so far this year, but can still run more given its good fundamentals and the fact that it is 40% below its 52-week high.

Recent developments underpin Centrus’s strong market position. The company delivered 900 kilograms of High-Assay, Low-Enriched Uranium (HALEU) to the U.S. Department of Energy by June 2025 and began domestic centrifuge manufacturing for Low-Enriched Uranium (LEU) in December 2025, addressing a $3.9 billion order backlog. These initiatives, coupled with favorable contract pricing, contribute to strong operational efficiency. Centrus bolstered its capital structure with a $1.2 billion convertible note issuance in 2024-2025 and repaid debt, holding over $1.6 billion in cash by September 2025. The stock surged over 250% year-to-date, signaling strong momentum as Centrus takes a critical role in U.S. nuclear fuel security amidst growing demand.

And Its Fundamentals Look Good

• Long-Term Profitability: About 15.9% operating cash flow margin and 14.3% operating margin last 3-year average.
• Strong Momentum: Currently in the top 10th percentile of stocks in terms of “trend strength” – our proprietary momentum metric.
• Revenue Growth: Centrus Energy saw revenue growth of 15.3% LTM and 21.3% last 3-year average, but this is not a growth story
• Room To Run: Despite its momentum, LEU stock is trading 40% below its 52-week high.

Below is a quick comparison of LEU fundamentals with S&P medians.

*LTM: Last Twelve Months

But Be Wary Of The Risks

While LEU stock may be a compelling investment opportunity, it’s always helpful to be aware of a stock’s history of drawdown. LEU took some serious hits in past crises. It plunged about 74% during the Dot-Com Bubble and nearly 88% in the Global Financial Crisis. The 2018 Correction wasn’t kind either, with an 84% drop. Even the Covid crash led to a 56% dip, and the Inflation Shock pushed it down 78%. Sure, the stock has strong fundamentals, but these numbers show that when markets freak out, LEU isn’t immune. Risk sticks around, no matter what. But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, outlook changes. Read LEU Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.

If you want to see more details, read Buy or Sell LEU Stock.

LEU Is Just One of Several Such Stocks

You could also check out:

1. Nextpower (NXT)
2. Coeur Mining (CDE)
3. Sterling Infrastructure (STRL)

We chose these stocks using the following criteria:

1. Greater than $2 Bil in market cap
2. High operating or (cash flow from operations) margins
3. No instance of very large revenue decline in the past 5 years
4. Low-debt capital structure
5. Strong momentum

A portfolio that was built starting 12/31/2016 with stocks that fulfil the criteria above would have performed as follows:

• Average 12-month forward returns of nearly 15%
• 12-month win rate (percentage of picks returning positive) of about 60%

Why Stock Pickers Win More With Multi Asset Portfolios

Stocks can jump or crash but different assets move on different cycles. A multi asset portfolio helps you stay invested while cushioning swings in equities.

The asset allocation framework of Trefis’ Boston-based, wealth management partner yielded positive returns during the 2008-09 period when the S&P lost more than 40%. Our partner’ strategy now includes Trefis High Quality Portfolio, which has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices