Oklo Participates in DOE Program: To Buy the Stock Now or Let go?

Oklo Inc. OKLO recently announced that it has joined the U.S. Department of Energy (“DOE”) Voucher Program to evaluate and test advanced structural materials for its Aurora powerhouse. This initiative should enhance manufacturing efficiencies, strengthen the supply chain and accelerate Oklo’s commercial deployment. Managed by ENERGYWERX in collaboration with Oak Ridge National Laboratory, the program supports material validation for Oklo’s fast reactors. This partnership, aimed at solidifying Oklo’s prowess in delivering scalable, cost-effective clean energy, might compel investors seeking long-term growth in the nuclear energy sector to add this stock to their portfolio. However, before making any hasty decision, let’s take a closer look at the stock’s performance over the past year, its growth prospects as well as risks (if any) to investing in it. This will help investors make a more informed decision. OKLO Stock Outperforms Industry, Sector & S&P500Shares of Oklo have surged an impressive 189.5% over the past year, outperforming the Zacks Alternative-Energy industry’s return of 49.4% as well as the broader Zacks Oils-Energy sector’s decline of 0.2%. It has also outpaced the S&P 500’s surge of 16.2% in the same period.Image Source: Zacks Investment ResearchA similar stellar performance has been delivered by other industry players, such as GEV Vernova GEV, Constellation Energy Corporation CEG and Bloom Energy BE, whose shares have surged 158.3%, 141.1% and 113.7%, respectively, over the past year.What Led to Oklo’s Recent Price Surge?The growing global shift toward clean energy across industries must have been increasing Oklo's share price over the past year, fueled by the company’s strong quarterly performance and strategic partnerships aimed at expanding its presence in clean power generation.Notably, in the third quarter of 2024, Oklo added two data center customers to its pipeline, bringing the total announced customer pipeline to 2,100 megawatts — a 200% increase since July 2023. This significant growth reflects Oklo's expanding footprint in the clean power generation industry.Meanwhile, in January 2025, OKLO signed a Memorandum of Understanding (“MOU”) with Lightbridge Corporation to explore co-locating a Lightbridge Commercial-scale Fuel Fabrication Facility at its proposed site. This collaboration is aimed at enhancing Oklo’s fuel recycling capabilities. In December 2024, the company signed a non-binding Master Power Agreement with Switch to deploy 12 gigawatts of Oklo Aurora powerhouse projects through 2044. Earlier in September, the company announced the finalization of a Memorandum of Agreement (“MOA”) with the DOE Idaho Operations Office, which granted Oklo access to conduct site investigations at its preferred site in Idaho. As the only advanced fission company with a DOE site use permit, along with substantial regulatory progress and a secured fuel supply, Oklo is uniquely positioned to deploy the first commercial advanced fission power plant in the United States. Will OKLO Stock Continue Its Winning Streak?The global surge in data centers, coupled with rising electricity demand, particularly in emerging economies, has been driving energy consumption. Notably, the United States remains the largest nuclear power producer, accounting for nearly 30% of global nuclear electricity generation, according to the World Nuclear Association.Amid this trend, Oklo is developing next-generation fast-fission power plants, branded as “powerhouses.” Its Aurora line is designed to generate 15-50 megawatts electric (MWe) using recycled and fresh nuclear fuel, with scalability up to 100 MWe. This positions Oklo for long-term growth in the nuclear energy sector.However, the company is yet to generate revenues, with its first Aurora powerhouse set for deployment in 2027. This indicates limited near-term top-line performance. Meanwhile, Oklo continues to incur substantial operating expenses in advancing its technology, straining its bottom line. The company’s short-term financial outlook remains uncertain, which may raise concerns among investors.While OKLO’s long-term potential in the nuclear power industry remains strong, its near-term financial challenges and the prolonged timeline before revenue generation may weigh on investors’ sentiment.The Zacks Consensus Estimate for first-quarter and full-year 2025 loss per share has witnessed no movement over the past 60 days. This suggests that analysts are maintaining their current expectations regarding the company's bottom-line performance and do not anticipate the existing conditions to change meaningfully in favor of OKLO, at least in the near term.Image Source: Zacks Investment ResearchNevertheless, the aforementioned estimates do reflect a year-over-year improvement.Image Source: Zacks Investment ResearchOKLO’s Impressive P/B ValueA quick sneak peek at the company’s trailing 12-months Price/Book (P/B) over the past year compared to that of its industry shows a bright scenario. OKLO’s higher P/B compared to its industry signifies that investors are optimistic about OKLO’s growth prospects and are willing to pay more per dollar of book value compared to other companies in the same industry.Image Source: Zacks Investment ResearchFinal ThoughtsTo conclude, investors interested in clean-energy stocks may add OKLO to their portfolio, considering its impressive P/B ratio,  long-term growth prospects in the clean energy industry, year-over-year growth implied in its bottom-line estimate and an impressive share price performance over the past year. The stock’s Zacks Rank #2 (Buy) further supports this investment thesis.  You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Constellation Energy Corporation (CEG): Free Stock Analysis Report Bloom Energy Corporation (BE): Free Stock Analysis Report GE Vernova Inc. (GEV): Free Stock Analysis Report Oklo Inc. (OKLO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks