Why Did Energy Fuels Stock Get Absolutely Hammered Today?

Energy Fuels shares just took a brutal beating—here's what's driving the bloodbath.

Market Mayhem Strikes

Uranium and rare earths play Energy Fuels got absolutely crushed in today's session, wiping out millions in market cap in mere hours. The selloff came fast and furious, leaving investors scrambling for answers while shorts piled on the pressure.

No company-specific news hit the wires—just another day in the volatile world of commodity stocks where sentiment shifts faster than a crypto trader's portfolio allocation.

Sometimes the market just decides it's haircut day, and today Energy Fuels was sitting in the front row. At least it's not another de-pegging event.

Image source: Getty Images.

Uranium prices still strong

The most obvious likely culprit for a decline in stock price at a company that mines uranium WOULD be a decline in the price of uranium. But in fact, according to data from TradingEconomics, uranium prices are doing just fine.

True, after approaching a recent high NEAR $80 per pound back in June, uranium prices "corrected" sharply lower in early July. But the price of uranium has slowly been moving back up ever since and recently passed $73 a pound.

Regardless, shares of not just Energy Fuels but also of rivals(CCJ -4.10%) and(DNN -6.07%) are down today -- though the others aren't down as much as Energy Fuels stock is.

Is Energy Fuels stock a buy?

Also noteworthy is that Denison in particular received price target hikes from multiple investment banks yesterday. This is curious because, while both Denison and Energy Fuels stocks are currently unprofitable, analysts polled by S&P Global Market Intelligence think Energy Fuels stock will turn profitable next year, but Denison isn't expected to earn a profit again until 2029.

Call me a traditionalist for preferring profitable stocks over unprofitable stocks, but that kind of makes me think today's unexplained sell-off could make this a good time to buy some Energy Fuels stock.