Stock Performance - Cameco (CCJ) closed at $51 38, down 0 39% from the previous session [1] - The stock underperformed the S&P 500 (up 0 16%), Dow (up 0 25%), and Nasdaq (down 0 06%) [1] - Over the last month, Cameco shares decreased by 8 58%, outperforming the Basic Materials sector (down 10 34%) but underperforming the S&P 500 (down 2 8%) [1] Earnings Expectations - Cameco is expected to report EPS of $0 17, up 13 33% year-over-year [2] - Revenue is projected at $735 56 million, an 18 64% increase compared to the same quarter last year [2] Analyst Estimates and Revisions - Positive revisions to analyst estimates indicate optimism about the company's business outlook [3] - Empirical research shows a direct correlation between estimate revisions and stock price performance [4] - The Zacks Consensus EPS estimate for Cameco has decreased by 3 75% in the past month [5] Valuation and Industry Ranking - Cameco is trading at a Forward P/E ratio of 40 23, a premium compared to the industry average of 12 51 [6] - The Mining - Miscellaneous industry has a Zacks Industry Rank of 145, placing it in the bottom 43% of all industries [6] - The Zacks Industry Rank measures the strength of industry groups based on the average Zacks Rank of individual stocks [7]

Nuclear Energy Momentum - Nuclear energy is gaining momentum as a solution for rising energy demand and reducing carbon footprint [1] - AI's electricity consumption could increase from 8 terawatt-hours in 2024 to 652 terawatt-hours by 2030, creating a need for nuclear power [2] - 63 nuclear reactors are currently under construction, and demand for nuclear could grow by 2.5 times its current capacity by 2050 [5] Cameco (CCJ) - Cameco is a leading uranium producer, accounting for approximately 18% of global uranium supply [4] - The company has controlling interests in uranium mines in Canada, the United States, and Kazakhstan [4] - Analysts estimate Cameco's revenue will hit $2.3 billion in 2025, with potential for long-term growth [6][7] Southern Company (SO) - Southern Company is one of the largest energy companies in the United States, serving over 9 million customers [8] - The company operates eight nuclear power units across three plants, with recent investments in new nuclear construction [9] - Southern Company offers a 3.5% dividend yield and is positioned to benefit from AI-driven energy demand [10] GE Vernova (GEV) - GE Vernova is a diversified clean energy technology company, focusing on nuclear, wind, and gas turbines [11] - The company anticipates high single-digit revenue growth through 2028 and is investing $5 billion in R&D by 2028 [12][13] - Analysts estimate GE Vernova will grow earnings by an average of 46% annually over the next couple of years [14]

Inkai JV Suspension and Impact - Cameco's partner Kazatomprom suspended production at the Inkai JV in Kazakhstan due to delayed submission of required documents, causing significant concerns for Cameco [1][2] - Cameco holds a 40% stake in the Inkai JV and is assessing the impact on its 2025 and 2026 production and financial performance [2] - The suspension led to a 2% increase in uranium prices and gains in uranium stocks, with Uranium Energy Corp, Energy Fuels, and NexGen Energy seeing increases of 13.9%, 10.7%, and 10.45% respectively [3] - Production at Inkai was 5.5 million pounds for the first nine months of 2024, down from 6.3 million pounds in the prior-year period [6] - Cameco lowered the 2024 uranium production outlook for Inkai by 0.6 million to 7.7 million pounds due to supply-chain issues [7] Financial and Operational Challenges - Cameco expects higher average unit production costs at McArthur River/Key Lake in 2024 compared to the average unit life of mine operating costs [10] - The average unit cost of sales in the fuel services segment is expected to increase to $25.50-$26.50 per kgU due to lower production expectations for UF6 at the Port Hope conversion facility [10] - Westinghouse is expected to generate a net loss of $170-$230 million in 2024 due to purchase accounting impacts and non-operating acquisition-related transition costs [11] - Cameco will incur care and maintenance costs of $50-$60 million for the ongoing curtailment of its tier-two assets [11] Industry and Market Trends - Kazakhstan increased the Mineral Extraction Tax (MET) for uranium from 6% to 9% in 2025, with rates based on production and spot prices from 2026 onward [9] - Global focus on nuclear energy is increasing due to population growth, electrification, decarbonization, and energy security concerns, with a push to triple nuclear power capacity by 2050 [16] - Cameco is the second-largest uranium producer, accounting for 16% of 2023 global production, with contracts for average annual deliveries of 29 million pounds of uranium through 2024-2028 [17] Strategic Initiatives and Valuation - Cameco plans to double its dividend payout by 2026, with a 33% increase to 16 cents per share for 2024 and a target of 24 cents per share by 2026 [15] - The company is investing to extend the mine life at Cigar Lake to 2036 and increasing production at McArthur River and Key Lake to 25 million pounds annually [17] - Cameco's stock is trading at a forward price-to-sales ratio of 10.42, above the industry's 1.32 and its three-year median of 6.90, indicating a stretched valuation [18] - The company's return on equity is 3.33%, higher than the industry's 1.66% [14]

Stock Performance - Shares of the uranium producer lost 8 98% in the past month while the Basic Materials sector lost 8 95% and the S&P 500 gained 1 05% [1] - In the latest trading session Cameco closed at $52 56 marking a -0 11% move from the previous day underperforming the S&P 500's daily loss of 0 04% [6] Earnings and Revenue Projections - Full-year earnings are expected at $0 51 per share a -10 53% change from last year while revenue is projected at $2 17 billion a +13 36% increase [2] - The upcoming earnings release projects earnings of $0 18 per share representing year-over-year growth of 20% and revenue of $735 56 million reflecting an 18 64% rise from the same quarter last year [7] Valuation Metrics - Cameco is currently trading at a Forward P/E ratio of 103 18 significantly higher than its industry's Forward P/E of 16 5 [4] Industry and Sector Analysis - The Mining - Miscellaneous industry part of the Basic Materials sector has a Zacks Industry Rank of 151 placing it in the bottom 40% of all 250+ industries [10] - The top 50% rated industries outperform the bottom half by a factor of 2 to 1 based on the Zacks Industry Rank [5] Analyst Revisions and Zacks Rank - Recent revisions to analyst forecasts can reflect near-term business trends with positive revisions indicating a favorable business outlook [8] - Cameco holds a Zacks Rank of 3 (Hold) with the consensus EPS projection remaining stagnant over the past 30 days [9]

Stock Performance - Cameco's stock closed at $52.44, with a -0.89% daily movement, underperforming the S&P 500's 1.09% gain, the Dow's 1.18% rise, and the Nasdaq's 1.03% increase [1] - Over the past month, Cameco's shares declined by 13.16%, underperforming the Basic Materials sector's 8.81% loss and the S&P 500's 0.71% loss [1] Earnings and Revenue Forecast - The company is expected to report an EPS of $0.18 in its upcoming earnings report, representing a 20% increase from the same quarter last year [2] - Revenue is forecasted at $735.56 million, up 18.64% from the prior-year quarter [2] - For the full year, Zacks Consensus Estimates project earnings of $0.51 per share and revenue of $2.17 billion, reflecting changes of -10.53% and +13.36%, respectively, from the previous year [4] Analyst Estimates and Revisions - The Zacks Consensus EPS estimate has decreased by 26.93% over the past month [3] - Positive estimate revisions indicate analyst optimism about the company's business and profitability [4] - Estimate revisions are directly correlated with near-term share price momentum [5] Valuation and Industry Ranking - Cameco is trading at a Forward P/E ratio of 103.75, significantly higher than the industry average of 16.09 [7] - The Mining - Miscellaneous industry, part of the Basic Materials sector, has a Zacks Industry Rank of 153, placing it in the bottom 40% of over 250 industries [7] Zacks Rank and Industry Performance - Cameco currently holds a Zacks Rank of 3 (Hold) [3] - The Zacks Rank system has a history of outperformance, with 1 stocks averaging an annual gain of +25% since 1988 [3] - The top 50% of industries ranked by Zacks outperform the bottom half by a factor of 2 to 1 [6]

Earnings Estimates - Cameco is expected to post earnings of $0 18 per share for the current quarter, representing a year-over-year change of +20% [4] - The Zacks Consensus Estimate for the current quarter has changed +26 4% over the last 30 days [4] - For the next fiscal year, the consensus earnings estimate of $1 33 indicates a change of +161 2% from the previous year [5] - The consensus earnings estimate for the next fiscal year has changed -17 5% over the past month [5] - For the current fiscal year, the consensus earnings estimate of $0 51 points to a change of -10 5% from the prior year [13] - The current fiscal year earnings estimate has changed -26 9% over the last 30 days [13] Revenue Estimates - The consensus sales estimate for the current quarter is $735 56 million, indicating a year-over-year change of +18 6% [6] - For the current fiscal year, the revenue estimate is $2 17 billion, representing a +13 4% change [6] - For the next fiscal year, the revenue estimate is $2 49 billion, indicating a +14 9% change [6] - Cameco reported revenues of $528 24 million in the last reported quarter, representing a year-over-year change of +23 2% [16] Valuation - Cameco is graded F on valuation, indicating it is trading at a premium to its peers [10] - The company's valuation multiples, such as P/E, P/S, and P/CF, are compared to historical values and peers to determine if the stock is fairly valued, overvalued, or undervalued [9] Stock Performance - Shares of Cameco have returned -13 2% over the past month, compared to the Zacks S&P 500 composite's -0 7% change [12] - The Zacks Mining - Miscellaneous industry, to which Cameco belongs, has lost 8 6% over the same period [12] Earnings and Revenue Surprises - Cameco reported revenues of $528 24 million in the last quarter, representing a -4 16% surprise compared to the Zacks Consensus Estimate of $551 15 million [8] - The EPS surprise was -103 85% [8] - The company could not beat consensus EPS or revenue estimates in any of the last four quarters [17] Zacks Rank - Cameco is rated Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [11][14]

Industry Overview - The AI boom continues to drive rapid energy consumption, keeping nuclear stocks relevant as we approach 2025 [1] Company Analysis: Oklo Inc (NYSE:OKLO) - Shares of Oklo Inc are up 2 9% at $19 66, after reaching a high of $22 94 earlier in the day [2] - The company announced a strategic partnership with data center operator Switch, backed by Sam Altman-Reid [2] - The stock has been volatile since its Oct 30 record high of $28 11, but the $18 level has contained pullbacks [2] - Year-to-date, the equity is up 84 8% [2] Company Analysis: Cameco Corp (NYSE:CCJ) - Cameco Corp is one of the world's largest uranium producers, a key fuel for nuclear reactors [3] - The stock has been slipping since its Dec 6 record high of $62 55, closing lower in seven of the last eight sessions [3] - Today, the stock is up 1 5% at $54 19, bouncing off the $54 level which acted as resistance in June and July [3] - Year-to-date, the equity is up 25 7% [3] Company Analysis: NuScale Power Corp (NYSE:SMR) - NuScale Power Corp stock is down 5% at $20 62, extending a steady downturn after its Nov 29 record high of $32 30 [4] - The $20 level, previously a pressure point, could now act as support, with the 60-day moving average capturing today's pullback [4] - Since the start of the year, SMR is up 520% [4]

Cameco (CCJ) is trading at a forward price-to-sales ratio of 9.91, significantly higher than the industry’s 1.33. It is also above its three-year median of 6.77. CCJ’s Value Score of F suggests that the stock is not so cheap and indicates a stretched valuation at this moment. Image Source: Zacks Investment ResearchYear to date, Cameco shares have gained 30.9% against the industry’s 13.2% decline. Meanwhile, the broader Zacks Basic Materials sector has declined 3.3%, while the S&P 500 has climbed 27.4%.CCJ S ...

Core Insights - The rise of artificial intelligence (AI) is prompting companies to reevaluate their energy strategies while committing to reduce carbon emissions to combat climate change [1] - Several countries have endorsed a Declaration to triple nuclear energy capacity by 2050, supported by major financial institutions, highlighting nuclear energy's critical role in future clean energy needs [2] Company Summaries - **Constellation Energy**: As a leading clean-energy producer in the U.S., Constellation generates 32,400 megawatts of capacity, with 86% from nuclear sources. The company supplies about 10% of the nation's clean energy and 90% of its energy is carbon-free. The demand for carbon-free nuclear power positions Constellation as a strong investment opportunity [6] - **Cameco**: A major player in the uranium industry, Cameco operates significant mining operations in Canada and the U.S. The company is set to produce 23.1 million pounds of uranium this year. With tight supplies and rising demand, particularly due to the U.S. ban on Russian uranium imports, Cameco is well-positioned for growth [8][10] - **NuScale Power**: NuScale is pioneering small modular reactors (SMRs), which offer a scalable approach to nuclear energy. The company has secured Standard Design Approval for its 50-megawatt SMR. Despite facing challenges, such as project delays, NuScale's technology is attracting interest from tech companies and investors, making it a stock to watch [11][14][15]

Core Viewpoint - Cameco (CCJ) has shown strong stock performance recently, outperforming the S&P 500 and the broader mining industry, raising questions about its future trajectory [1] Earnings Estimate Revisions - The consensus earnings estimate for Cameco is $0.18 per share for the current quarter, reflecting a year-over-year increase of +20%, but has seen a significant downward revision of -23.6% over the last 30 days [4] - For the current fiscal year, the consensus estimate is $0.51, indicating a year-over-year decline of -10.5%, with a notable change of -38.6% in the last month [4] - The next fiscal year's consensus estimate of $1.33 suggests a substantial increase of +161.2% compared to the previous year, although it has also been revised down by -17.9% recently [5] Revenue Growth - The consensus sales estimate for the current quarter is $735.56 million, representing a year-over-year increase of +18.6% [8] - For the current fiscal year, the revenue estimate is $2.17 billion, indicating a growth of +13.4%, while the next fiscal year's estimate of $2.49 billion reflects a +14.9% change [8] Last Reported Results and Surprise History - In the last reported quarter, Cameco generated revenues of $528.24 million, a year-over-year increase of +23.2%, but reported an EPS of -$0.01 compared to $0.24 a year ago [9] - The company has consistently missed consensus revenue and EPS estimates over the last four quarters, with a revenue surprise of -4.16% and an EPS surprise of -103.85% in the last quarter [10] Valuation - Cameco is graded F in the Zacks Value Style Score, indicating it is trading at a premium compared to its peers [14] - Valuation multiples such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF) suggest that the stock may be overvalued relative to its historical values and peers [12][13] Bottom Line - The current Zacks Rank of 3 suggests that Cameco may perform in line with the broader market in the near term, despite the mixed signals from earnings estimates and valuation metrics [15]