SMR Should I Buy
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NuScale Power Corp (SMR) is not a good buy for a beginner, long-term investor at this time. The stock is facing significant financial challenges, negative sentiment from lawsuits, and bearish technical indicators. While there is some long-term potential in its commercialization efforts, the current risks outweigh the rewards.
The stock is in a bearish trend with the MACD histogram below 0 and negatively expanding, RSI at 21.502 indicating oversold conditions, and bearish moving averages (SMA_200 > SMA_20 > SMA_5). The stock is trading near its support level of 11.889, with resistance at 13.387.
NuScale remains the only NRC-approved SMR and has secured a 6 GW potential deal with TVA. Analysts like Northland have upgraded the stock to Outperform, citing its low valuation and long-term potential.
The company is facing multiple class action lawsuits, significant financial losses, and declining revenue. Analysts have broadly lowered price targets, and the stock is underperforming its nuclear peers. Concerns about ENTRA1's lack of experience and commercialization delays further weigh on sentiment.
NuScale's Q4 2025 financials show a revenue drop of -94.72% YoY to $1.8M, a net income drop of -32.21% YoY to -$50.83M, and a gross margin decline of -103.70% YoY to -3.37%. EPS improved slightly to -0.8, up 15.94% YoY, but overall financial performance remains weak.
Analysts are mixed but generally cautious. RBC Capital, Citi, Canaccord, and others have lowered price targets significantly, citing commercialization delays and financial challenges. Northland upgraded the stock to Outperform, citing its low valuation and long-term potential, but overall sentiment remains negative.
