After powering to higher closes than the previous days of trading on both Thursday and Friday last week, NuScale Power (SMR +9.35%) stock is poised to extend the streak for a third consecutive day of trading. Although the company hasn’t reported any positive news to drive the advanced nuclear reactor stock higher, a Swedish utility announced today, a move the market is interpreting as a positive sign for the industry.
As of 2:00 p.m. ET, shares of NuScale Power are up 10.7%, retreating slightly from an earlier rise of 13.7%.
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News from Sweden has investors bidding this American stock higher
Vattenfall, a Swedish state-owned power company operating in Sweden, Germany, the Netherlands, Denmark, and the U.K., announced today that it has selected Rolls-Royce to supply three SMRs, each with a power capacity of 470 megawatts.
While the U.S. is currently experiencing a nuclear industry renaissance, the Vattenfall announcement suggests that markets outside of the U.S. are also embracing SMR solutions, providing companies like NuScale Power with greater growth opportunities.
NuScale Power touts itself as the only SMR company with designs approved by the U.S. Nuclear Regulatory Commission.
Is NuScale Power stock a buy on the news from Scandinavia?
Despite the positive news from Sweden, it’s rather foolhardy to click the buy button on NuScale Power stock solely because of Vattenfall’s announcement. There’s still a significant risk with a NuScale Power investment, so only those comfortable with speculative investments should consider positions. For all others, a nuclear energy ETF may be a more compelling option.
Scott Levine has no position in any of the stocks mentioned. The Motley Fool recommends NuScale Power and Rolls-Royce Plc. The Motley Fool has a disclosure policy.
