This Renewable Energy Player Is the Top-Performing Stock of 2023

This renewable energy stock could continue to be the best energy stock of 2023 and certainly has strong growth ahead.

Amy Legate-Wolfe

Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Before joining Motley Fool Canada, she wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote: “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published November 1, 2023 3:45 pm EDT

| More on: CCO

When it comes to growth stocks on the market today, there really aren’t all that many to choose from. While the TSX today has started to rebound as we head into November, we’re still fairly close to 52-week lows.

So, with that in mind, it certainly is a great time to get some growth on the table. And if you’re looking for some, this renewable energy stock could certainly do just that.

Nuclear power station cooling tower — Source: Getty Images

Why renewable energy?

When it comes to renewable energy stocks, there is a lot up in the air. We don’t really know what will end up as the long-term solution, as we need to follow the money. What will create the most amount of energy for the least cost?

Yet there is one sector that’s already been a strong player in renewable energy for decades. That’s nuclear power. Nuclear power is operational around the world, yet shares in the companies providing uranium to power these locations dropped a decade back. This occurred after the tragedy of Fukushima in Japan.

Since then, there has been more focus on creating nuclear power plants. That’s especially true in highly populated countries such as India and China as well as the United States. The U.S. already powers 20% of the country through nuclear means.

Is it a long-term solution?

This is up for debate and mainly comes down to the source of nuclear power. While it does create clean energy, mining for uranium isn’t the best resource. Uranium is a finite resource, just like oil, so one day, we could be right back to where we are now.

Until then, however, it, at the very least, gives us time to source out other renewable energy sources. And that means uranium stocks are the top renewable energy stocks to choose from these days! And it’s why this renewable energy stock is the top among them.

Cameco stock

Cameco (TSX:CCO) isn’t just the best renewable energy stock of 2023; it’s the top-performing stock of the year so far! Cameco stock trades up 73% year to date, as of writing. That’s immense growth that seems like it’s only going to continue as well.

The main reason is that if you’re looking to power the future of clean energy through uranium, you’ll need large uranium producers. Cameco stock is the world’s largest publicly traded uranium producer. And it’s proving just how strong the company is.

During its earnings report, Cameco stock reported a profit of $148 million in the last quarter this week compared to a loss a year ago. Revenue totalled $575 million from $389 million in 2022. Cameco updated its outlook as well. Cameco expects revenue between $2.43 billion and $2.58 billion, up from between $2.38 billion and $2.53 billion earlier in the year. This comes from higher prices under its contracts.

So, while there aren’t a lot of growth stocks out there, Cameco stock looks like it should continue to be the best of the best in 2023 at least, if not far beyond, as we continue to seek out renewable energy stocks.