Five nuclear stocks that could still be valuable

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By Ben Levine for Kapitall.

As many will remember, in 2011 Japan's Fukushima Daiichi nuclear complex underwent a triple meltdown  after an earthquake and a tsunami. In response, the United States Congress ordered a study  of sources of risk to nuclear reactors in the US.

The National Academy of Science released a report  on the study on Thursday, which indicates that the greatest sources of risk to American reactors are external rather than internal. Simply put, reactors in America are much better built to contain themselves than they are to withstand a natural disaster. 

Not surprisingly, the state of the global nuclear industry isn't looking great. According to the 2013 World Nuclear Industry Status Report , electricity generation from nuclear plants worldwide dropped by 7% in 2012, topping a 4% drop in 2011. 

Less surprisingly, the publicity the Fukushima incident garnered didn't exactly do great things for public perception of the nuclear industry. For all of the energy efficiency and low carbon emissions that nuclear power brings, for some reason the prospect of irradiating explosions appears to be making people cautious. And that's not to mention the issue of how to dispose of nuclear waste .

Yet, the state of the nuclear industry might not be quite so bad as popular opinion would lead everyone to believe. While few reactors are being built relative to those being decommissioned, some the stocks of some companies providing nuclear energy or supplying the nuclear industry are doing well.

We took a look at a lot of nuclear stocks in the nuclear industry and screened for those with encouraging inventory turnover trends, meaning that the company's inventory is declining as a percentage of the company's net assets. This can often indicate rising demand for a company's products, as they're selling faster than initially projected. To top things off, these five stocks are all paying dividends.

Do you think the nuclear industry still has some good investment opportunities, or do reactors' susceptibilities to natural disasters make them too risky? Use the list below to begin your analysis and let us know what you think in the comments.

Click on the interactive chart to view data over time. 

1. Ametek Inc. ( AME , Earnings , Analysts , Financials ): AMETEK, Inc. manufactures and sells electronic instruments and electromechanical devices in North America, Europe, Asia, and South America. Market cap at $12.93B, most recent closing price at $52.86.

Revenue grew by 11.96% during the most recent quarter ($942.47M vs. $841.79M y/y). Inventory grew by 5.57% during the same time period ($452.85M vs. $428.94M y/y). Inventory, as a percentage of current assets, decreased from 36.83% to 33.08% during the most recent quarter (comparing 3 months ending 2013-12-31 to 3 months ending 2012-12-31). 

Current dividend yield is 0.70%.

2. CIRCOR International, Inc. ( CIR , Earnings , Analysts , Financials ): Engages in the design, manufacture, and marketing of valves and other engineered products and sub-systems. Market cap at $1.37B, most recent closing price at $78.07.

Revenue grew by 6.16% during the most recent quarter ($214.03M vs. $201.61M y/y). Inventory grew by 0.71% during the same time period ($199.4M vs. $198M y/y). Inventory, as a percentage of current assets, decreased from 44.67% to 41.21% during the most recent quarter (comparing 3 months ending 2013-12-31 to 3 months ending 2012-12-31). 

Current dividend yield is 0.20%.

3. Emerson Electric Co. ( EMR , Earnings , Analysts , Financials ): Operates as a diversified manufacturing and technology company. Market cap at $45.25B, most recent closing price at $64.32.

Revenue grew by 0.95% during the most recent quarter ($5,606M vs. $5,553M y/y). Inventory grew by -6.33% during the same time period ($2,162M vs. $2,308M y/y). Inventory, as a percentage of current assets, decreased from 22.88% to 21.62% during the most recent quarter (comparing 3 months ending 2013-12-31 to 3 months ending 2012-12-31).

Current dividend yield is 2.57%.

4. Southern Company ( SO , Earnings , Analysts , Financials ): Operates as a utility company that provides electric service in the southeastern United States. Market cap at $37.28B, most recent closing price at $42.12.

Revenue grew by 6.05% during the most recent quarter ($3,927M vs. $3,703M y/y). Inventory grew by -18.48% during the same time period ($2,298M vs. $2,819M y/y). Inventory, as a percentage of current assets, decreased from 45.75% to 41.04% during the most recent quarter (comparing 3 months ending 2013-12-31 to 3 months ending 2012-12-31). 

Current dividend yield is 4.69%.

5. Westar Energy, Inc. ( WR , Earnings , Analysts , Financials ): Engages in the generation, transmission, and distribution of electricity. Market cap at $4.8B, most recent closing price at $37.06.

Revenue grew by 6.89% during the most recent quarter ($559.88M vs. $523.77M y/y). Inventory grew by -3.82% during the same time period ($239.51M vs. $249.02M y/y). Inventory, as a percentage of current assets, decreased from 38.72% to 33.89% during the most recent quarter (comparing 3 months ending 2013-12-31 to 3 months ending 2012-12-31). 

Current dividend yield is 3.78%.

(List compiled by Ben Levine. Analyst ratings sourced from Zacks Investment Research. All other data sourced from Finviz.)

Kapitall Wire is a division of New Kapitall Holdings, LLC. Kapitall Generation, LLC is a wholly owned subsidiary of New Kapitall Holdings, LLC. Kapitall Wire offers free investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by New Kapitall Holdings, LLC, and its affiliate companies.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



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