The price of uranium has risen strongly over the past year or so, with spot prices hitting $100 early in 2024. That's also drastically higher than the roughly $18 at which the nuclear fuel traded at its nadir in 2016. So, in some ways, there's a reason to be excited about the uranium space. Note that nuclear power is, in fact, a carbon-free energy source. But is that enough of a reason to buy Uranium Energy Corp. (NYSEMKT: UEC)? Here are some things to consider.

Uranium is on the rise. Higher commodity prices will lead to higher revenue from selling uranium. Investors have reacted as you might expect, bidding up the prices of uranium-related companies like Uranium Energy. The first reason you might want to buy the company is if you expect uranium prices to continue heading higher.

However, you can't expect prices to rise forever. In fact, there has been a pullback of late, which has resulted in a decline in Uranium Energy's stock price. That doesn't mean that uranium can't go any higher, but you have to understand that commodity prices rise and fall.

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Source Fool.com