The Nuclear Advantage: Why BWX Technologies Deserves a Second Look

The recent market rally has left many investors wondering why certain stocks have fallen by the wayside. One such company is BWX Technologies, Inc., which manufacturers and sells nuclear components globally. Despite solid fundamentals and a strong growth trajectory in the defense and energy sectors, BWX’s shares have lagged behind their peers.

BWX Technologies’ business model is well-positioned to benefit from the shift towards nuclear power. The company supplies critical components to both the US Navy and commercial nuclear operators, with a growing presence in advanced reactor technologies. This expertise makes them well-suited to capitalize on the trend towards cleaner energy sources, which many experts predict will see significant growth in the coming years.

As the world grapples with climate change, energy security is becoming an increasingly pressing concern. Nuclear power offers a cleaner and more reliable alternative to fossil fuels, making it an attractive option for investors seeking long-term growth prospects. BWX Technologies’ shares deserve a second look from investors who are willing to overlook short-term market volatility.

Polen Capital’s small-mid growth composite portfolio returned a respectable 28.4% gross and 28.2% net of fees in the second quarter of 2026, outperforming the Russell 2500 Growth Index by nearly 5%. This impressive showing is due in part to the firm’s emphasis on AI-related stocks, which have seen hyperscalers and enterprise customers continue to invest heavily. However, this focus may be obscuring another significant trend: the growth of nuclear energy.

The contrast between BWX’s performance and that of its peers highlights a broader market dynamic: the prioritization of short-term gains over long-term fundamentals. Investors are increasingly drawn to AI-related stocks, which offer immediate gratification and high-beta returns. However, these stocks also come with significant downside risk, as noted by Polen Capital.

The onshoring trend, driven in part by Trump-era tariffs, has created opportunities for companies like BWX Technologies. As industries shift towards local production and supply chains, the demand for nuclear components is likely to increase. This trend, combined with growing investment in advanced reactor technologies, positions BWX for significant growth in the coming years.

Polen Capital’s decision to continue viewing BWX as well-positioned to benefit from nuclear energy and defense modernization reflects the company’s long-term vision. Despite current market volatility, BWX Technologies’ fundamentals remain strong, making it an attractive investment opportunity for those willing to look beyond short-term trends.

While some investors may view AI stocks as the most attractive option, it is essential to consider the potential risks and limitations of these investments. The decision to prioritize AI-related stocks over nuclear energy and defense companies like BWX Technologies overlooks the long-term growth prospects of this industry.

Ultimately, BWX Technologies’ shares deserve a second look from investors who are willing to consider the company’s solid fundamentals, strong growth trajectory, and well-positioned business model. As the world continues to transition towards cleaner energy sources, companies like BWX Technologies are poised to capitalize on this trend, making them a compelling investment choice for long-term investors.