BWX Technologies Inc (BWXT) experienced a pre-market surge of 5.11% on October 17, 2024, following the announcement of a new 10-year contract award from the U.S. Department of Energy for HALEU deconversion services.

While the new contract further solidifies BWXT's strong relationship with the U.S. government and its position as a leading supplier of nuclear components and services, analysts caution that the revenue impact from this specific contract is expected to be minimal. The total contract value of up to $800 million will be shared among six companies, with BWXT's minimum share being $2 million.

Despite the positive news, concerns have been raised about BWXT's current valuation, with a P/E ratio of around 41, which some analysts consider high for a mature business. The stock price has surged more than 50% over the past year, potentially outpacing the company's fundamentals and growth prospects.