NANO Nuclear to Post Q1 Earnings: Time to Buy, Hold or Sell the Stock?

NANO Nuclear Energy Inc. NNE is scheduled to release fiscal first-quarter results on Feb. 17, after market close. The Zacks Consensus Estimate is currently pegged at a loss of 32 cents per share.
 
Fiscal first-quarter earnings estimates have improved 36% over the past 60 days. The bottom-line projection indicates a decrease of 255.6% from the year-ago number.

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NNE Stock’s Earnings Surprise History

NANO Nuclear Energy’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in another quarter, resulting in the average negative surprise of 74.03%.

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What the Zacks Model Unveils

Our proven model does not predict an earnings beat for NANO Nuclear Energy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you can see below.

Nano Nuclear Energy Inc. Price and EPS Surprise

Nano Nuclear Energy Inc. price-eps-surprise | Nano Nuclear Energy Inc. Quote

You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

NNE’s Earnings ESP: NANO Nuclear Energy has an Earnings ESP of 0.00%.

Zacks Rank of NNE: The company currently carries a Zacks Rank #3.
 
Some companies in the same industry with the right combination of the two factors for an earnings surprise in the coming season are Constellation Energy CEG, Excelerate Energy EE and Gevo Inc. GEVO. CEG, EE and GEVO have an Earnings ESP of +3.13%, +1.03% and +10.00%, respectively. All three currently carry a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Key Initiative Undertaken During NNE’s Q1

In the fiscal first quarter, NANO Nuclear Energy completed the acquisition of Global First Power from USNC. This acquisition will allow NANO Nuclear Energy to demonstrate its KRONOS MMR in both the United States and Canada. The acquisition allowed NANO Nuclear Energy to acquire USNC’s intellectual property rights relating to microreactors. This will assist NANO Nuclear Energy to develop its own micro reactor.

During the quarter, NANO Nuclear Energy received support from key stakeholders for its prototype project, including a potential future customer’s announcement to pursue a feasibility study for deploying 15 KRONOS MMR microreactors.

NANO Nuclear Energy signed an agreement with BaRupOn LLC under which it will be paid to conduct a feasibility study assessing the usage of multiple KRONOS MMR units to produce up to 1 GW of power at BaRupOn’s Liberty American Multi-Sourced Power and Innovation Hub in Texas. The partnership reinforces NNE’s position as a leading North American advanced reactor developer and positions it to meet massive, near-term power demand.

NNE Stock’s Price Performance

NNE’s shares have declined 25.8% in the past three months against the Zacks Alternative Energy – Other industry’s rise of 9.7%.

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NNE Is Trading at a Premium Valuation

NANO Nuclear Energy is currently trading at a premium valuation compared with its industry, with the price-to-book (P/B) TTM at 6.47X. The industry is currently trading at 3.92X.

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This article originally published on Zacks Investment Research (zacks.com).

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