The uranium market is really picking up steam lately, thanks to a mix of tight supply and a spike in demand for nuclear power, which is seen as a solid and eco-friendly energy option. This upswing has put the spotlight on uranium mining stocks, especially those with serious growth potential and attractive valuations.

One such company that has caught the attention of analysts is Centrus Energy Corp (LEU), a small-cap uranium miner and a member of the Russell 2000 Index (RUT). Despite flying under the radar with only three analysts covering it, all three are screaming "Strong Buy," with the forecast calling for significant upside potential.

The bullish vibes around LEU come at a time when uranium prices (UXM24) are staging an epic comeback. With the global push to ditch carbon and the growing realization that nuclear power is a legit way to meet energy needs while cutting emissions, the demand for uranium is only getting stronger - just as major producers are warning of a long-term supply crunch.

So, let's take a closer look at what makes this small-cap uranium stock a standout with Wall Street analysts.

About Centrus Energy Stock

Valued at $636 million, Centrus Energy Corp (LEU) is a Maryland-based supplier of enriched uranium fuel for commercial nuclear power plants, operating in two primary segments - LEU and Contract Services.

LEU stock boasts a market-beating gain of 35% over the past 52 weeks, even though the shares have pulled back pretty sharply on a YTD basis - 24.8%, to be specific. 

Now, the stock's forward price-to-earnings (P/E) ratio is sitting at 14.69x, which might make you do a double-take, since that's a premium to the energy sector median (around 10x). However, LEU trades at a discount to uranium sector heavyweight Cameco (CCJ) on this basis, with CCJ valued at 31.2x forward earnings. 

Plus, LEU's price/sales multiple of around 1.9x is significantly lower than smaller uranium industry players like Energy Fuels (UUUU) and Ur Energy (URG).

What's the Earnings Forecast for Centrus Energy?

In the fourth quarter of 2023, LEU knocked it out of the park by reporting EPS of $3.58 - up a staggering 152% from the previous year, and way ahead of the consensus estimate of $0.78. Revenue of $103.6 million also beat expectations.

The consensus forecast is calling for a profit of $0.50 per share when Centrus reports earnings again on May 13, while revenue is expected at $76.9 million.

In the meantime, a new partnership could drive growth. They inked a deal with Lightbridge Corporation (LTBR) to kick off a front-end engineering and design (FEED) study to add a new, dedicated Lightbridge Pilot Fuel Fabrication Facility at their American Centrifuge Plant in Piketon, Ohio - which could create a potential powerhouse partnership in the nuclear industry.

That Centrus plant in Ohio is the only HALEU production plant in the world outside of Russia, so it's a critical asset - particularly amid simmering geopolitical tensions, with the U.S. and UK both clamping down on Russia-origin metals in the last week. 

Centrus hit a major milestone last November by delivering its first batch of HALEU to the U.S. Department of Energy, its partner on the Piketon plant. That moves the project along to Phase Two, where the DoE will pay Centrus on a cost-plus incentive fee basis for the HALEU the company produces at the Ohio facility.

With buzz growing around advanced nuclear tech and the next wave of reactors, this small-cap company's footprint in the heart of domestic uranium enrichment should give them a critical edge over competitors when it comes to growth.

Analysts Are Bullish on LEU Stock

Centrus Energy is definitely catching the eye of Wall Street, with a solid "Strong Buy" across the board from the three analysts in coverage. The average price target is $68.50, suggesting upside potential of more than 65% from Friday's close.

With a unanimous thumbs-ups from the analysts, a key partnership in the DoE, and a unique foothold in the supply-strapped uranium market, it's hard to argue with the bullish forecasts for LEU. For investors seeking exposure to the suddenly hot uranium industry, this small-cap standout is worth a second look.