A commodity-focused business like Uranium Energy Corp (NYSEMKT: UEC) can be very volatile. That's not surprising when you consider that the product it sells, uranium, is a bit volatile. Uranium Energy's 90% or so stock price gain over the past year is largely related to the rise in uranium prices. But there's so much more to understand here before you even consider buying this stock.

The spot price of uranium has risen from around $49 about a year ago to $95 at the end of February 2024. That's a very large increase, and it shouldn't be surprising that companies that mine for the nuclear fuel have seen their stocks rise along with the commodity they produce. Industry giant Cameco (NYSE: CCJ) is a great example, as the chart below shows.

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Source Fool.com