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BWX Technologies (BWXT) Hits an All-Time High on Canadian Nuclear Deal

BWX Technologies (BWXT) Hits an All-Time High on Canadian Nuclear Deal

Yahoo5 days ago

BWX Technologies, Inc. (NYSE:BWXT) is among the Best Nuclear Energy Stocks to Buy Right Now.
BWX Technologies, Inc. (NYSE:BWXT) closed at its all-time high this week after it was announced that a joint venture led by the company has secured a high-value contract to manage Canadian Nuclear Laboratories. Valued at an average of C$1.2 billion annually, the contract is for six years, with possible extensions reaching up to 20 years.
An aerial view of a nuclear plant, its domes casting a unique shadow.
Moreover, BWX Technologies, Inc. (NYSE:BWXT) continues to expand its footprint and completed the acquisition of Kinectrics last month. The strategic move is aimed at expanding the company's capabilities, including lifecycle management, specialized plant services, and engineering, along with nearly doubling its workforce.
John MacQuarrie, President of Commercial Operations of BWX Technologies, Inc. (NYSE:BWXT), stated:
'Since we announced our intention to acquire Kinectrics in January, we have been looking forward to this day, when the complementary nature of our organizations begins to take shape. From the commercial nuclear power market to medical isotopes, we are enhancing our capabilities across the board, supporting a growing nuclear new build and life extension industry in Canada and strengthening BWXT's position in the global nuclear market.'
The share price of BWX Technologies, Inc. (NYSE:BWXT) has surged by over 23% since the beginning of 2025.
BWX Technologies, Inc. (NYSE:BWXT) is a leading supplier of nuclear components and fuel to the US government, including the manufacturing of nuclear reactor components for US Navy submarines and aircraft carriers, and other nuclear and non-nuclear R&D and component production.
While we acknowledge the potential of BWXT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 10 Cheap Energy Stocks to Buy Now and
Disclosure: None.

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Make Over a 2.4% One-Month Yield Shorting Nvidia Out-of-the-Money Puts
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Make Over a 2.4% One-Month Yield Shorting Nvidia Out-of-the-Money Puts

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We discount the terminal cash flows to today's value at a cost of equity of 8.4%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = US$1.9b× (1 + 2.9%) ÷ (8.4%– 2.9%) = US$35b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= US$35b÷ ( 1 + 8.4%)10= US$16b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is US$25b. In the final step we divide the equity value by the number of shares outstanding. Relative to the current share price of US$84.3, the company appears quite good value at a 31% discount to where the stock price trades currently. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent. The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Tapestry as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 8.4%, which is based on a levered beta of 1.272. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. See our latest analysis for Tapestry Strength Debt is well covered by earnings and cashflows. Dividends are covered by earnings and cash flows. Weakness Earnings declined over the past year. Dividend is low compared to the top 25% of dividend payers in the Luxury market. Opportunity Annual earnings are forecast to grow for the next 3 years. Good value based on P/E ratio and estimated fair value. Threat Annual earnings are forecast to grow slower than the American market. Valuation is only one side of the coin in terms of building your investment thesis, and it shouldn't be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. What is the reason for the share price sitting below the intrinsic value? For Tapestry, there are three additional factors you should further research: Risks: To that end, you should be aware of the 3 warning signs we've spotted with Tapestry . Management:Have insiders been ramping up their shares to take advantage of the market's sentiment for TPR's future outlook? Check out our management and board analysis with insights on CEO compensation and governance factors. Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing! PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the NYSE every day. If you want to find the calculation for other stocks just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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