The day was Thursday but nonetheless it's nice to see a little recognition/personal bias confirmation.
The stock closed up $3.35 (4.45%) at $78.63 on Thursday and despite the wider indices trading heavier this morning is up a bit more, $0.42 (+0.53%) in early pre-market action.
From Investor's Business Daily, August 28:
IBD Stock Analysis
- Stock is actionable as it rebounds from 10-week support, tops downward trendline
- Flat base could be forming with 80.32 entry
Cameco (CCJ), the leader in its industry group, is the IBD Stock of the Day. The company is literally fueling portions of the AI data center boom.
Canada-based Cameco has operations from the start to the end of the nuclear-energy supply chain. It operates uranium mines in Canada, the U.S., Australia and Kazakhstan. In Canada, it has the world's largest commercial uranium refinery and the country's sole uranium conversion plant. The company also owns 49% of Westinghouse Electric, which helps operate nuclear power plants and is a leader in developing small modular reactor, or SMR, technology.
In an investor presentation, Cameco says it had 17% of the world's uranium production in 2024.
Nuclear power delivers a clean-burning and almost inexhaustible amount of electricity, which makes it an appealing choice to power the many data centers under construction or being expanded. The vast workloads associated with artificial intelligence are greatly increasing demand for data center capacity and the energy needed to drive that capacity. But that's not all.
Reshoring of manufacturing and supply chains, growing electrification and rising use of electric vehicles are also driving demand for electricity. This is causing utilities to diversify their generating assets, Wells Fargo Investment Institute Equity Sector Analyst Joe Buffa said in a report earlier this month.
"We see nuclear power largely holding share" amid uprates (maximum power output) and as a couple of facilities reenter service, Buffa added.
Mining Industry Leader
Cameco is the No. 1 stock in IBD's metal ores mining industry group, according to IBD Stock Checkup. It has perfect 99 Composite and EPS Ratings. Earnings rose 63%, 22% and 407% the past three quarters, according to FactSet. Sales climbed 33%, 24% and 47%.The company's July 31 earnings report beat analysts' consensus views. Management kept its production forecast unchanged, as operations at a Saskatchewan mine may face ground freezing, labor and other problems. Cameco expects average uranium prices of $87 per pound this year, up from a previous estimate of $84
The outlook for its Westinghouse business is bright. It forecast adjusted EBITDA of $525 million to $580 million from a previous estimate of $355 million to $405 million. Over the next five years, Cameco expects adjusted EBITDA will grow at a compound annual growth rate of 6% to 10%.
Analysts expect full-year sales to climb 13% to nearly $2.5 billion, with earnings surging 148% to $1.17 a share in U.S. currency, per FactSet.
The ores mining group is No. 2 among IBD's 197 industry groups after rising 26% year to date. Shares of Cameco are up more than 52%.
Cameco Stock Analysis....
....MUCH MORE
Previously:
September 2022 - "Investors are Buying a Ton of Call Options in Uranium Stock Cameco Corp" (CCJ)If I recall correctly, a ton of calls is £2000 worth - two thousands pounds worth, whereas a tonne of calls...
October 2022 - Uranium Miner Cameco and Brookfield Renewable Partners To Buy Nuke Maker Westinghouse (CCJ; BEP)
September 2024 - Barron's Cover: "Get Ready for the New Nuclear Age. It Could Help Solve America’s Electricity Problems"
June 2025 - "UBS Upgrades Uranium Prices On "Repowering The US" Theme Gaining Steam"
July 2025 - ICYMI: "In Small Nuclear Reactors, There’s One Clear Leader Today" (GEV)
....As noted introducing June 27's "Trump plans executive orders to power AI growth in race with China" (PWR; GEV; CCJ):
I think we're positioned correctly with the Quanta, GE Vernova, Cameco etc.
But until sales, earnings, and cash flow catch up to the news, valuations are getting stretched.
But at least we have sales, earnings, and cash flow should the overall market tumble.
Money coming in the front door is comforting and a cushion against impulsivity, regret and all the other things that get in the way of big gains.
And as mentioned exiting May 23's ""Trump plots ‘Manhattan Project 2’ in nuclear power push" (CCJ; GEV)":
The "set it and forget it" stocks are in the headline, Cameco among the miners and GE Vernova among the nuke reactor manufacturers.
However, as is so often the case the speculative lottery tickets are seeing a lot of enthusiasm for their shares. The problem with them as investments are 1) a lack of stuff like sales/earnings/cash flow and 2) our conviction that we will see at least one and possibly three bear markets before they have products.
And in bear markets it is the companies lacking in sales/earnings/cash flow that get hit hardest; as investors begin to question whether they may have made a big mistake.
Addendum: I should have mentioned that with Cameco you also get 49% of nuke plant company Westinghouse. Brookfield owns the 51%.
And in June 16's "Why U.S. Uranium Production Surged 12-Fold In 2024" a reminder that Kazakhstan's Kazatomprom is and will probably remain the world's largest producer.
And many, many more.
