With crude prices showing no immediate signs of slowing — and the United States determined to reduce its dependence on foreign oil — we should once again see alternative energy stocks gain the attention (and respect) they deserve.

During Ben Bernanke’s testimony this afternoon, one representative discused the possibility of increasing the number of nuclear power facilities in the U.S. Although this seems like an unlikely scenario, it appears to be the ideal solution given the price volatility of oil, coal and natural gas. (Not to mention the massive reduction in carbon emissions.) Here’s how you can play this nuclear power news.

The the largest players in the nuclear power industry are Entergy (NY:ETY), Duke (NY:DUK) and Progress Energy (NY:PGN). These companies have excellent growth potential and some of the best dividend yields in the entire energy sector. As the topic of nuclear energy begins to circulate in the media, Entergy and Progress will both make new 52-week highs - a scenario likely to take place before the 4th quarter of ‘07.

An even better way to invest in nuclear power may be to purchase shares of uranium producers like Cameco (NY:CCJ) and USEC (NY:USU). Combined the two entities control over 30% of the world’s uranium production. If the demand for nuclear power increases, so will the demand for uranium and the price of these two stocks.

Filed under: Fundamental Research, Sector Watch, Stocks, Time To Buy