Group 1 - Cameco's stock closed at $49.85, reflecting a -1.01% change from the previous session, underperforming compared to the S&P 500's gain of 0.03% [1] - Over the past month, Cameco's shares have increased by 3.2%, which is lower than the Basic Materials sector's gain of 8.14% and the S&P 500's gain of 4.19% [1] Group 2 - The upcoming earnings report for Cameco is scheduled for February 20, 2025, with expected earnings of $0.23 per share, indicating a year-over-year growth of 53.33% [2] - Revenue is anticipated to be $735.56 million, reflecting an 18.64% increase from the same quarter last year [2] Group 3 - Recent changes to analyst estimates for Cameco are important as they reflect short-term business trends, with positive revisions indicating optimism about the company's outlook [3] - The Zacks Rank system, which incorporates estimate changes, provides a practical rating system for stocks [4] Group 4 - The Zacks Rank system ranges from 1 (Strong Buy) to 5 (Strong Sell), with 1 stocks averaging an annual return of +25% since 1988 [5] - Currently, Cameco holds a Zacks Rank of 3 (Hold), with a 3.51% decrease in the consensus EPS estimate over the last 30 days [5] Group 5 - Cameco's Forward P/E ratio is 39.84, which is significantly higher than the industry average Forward P/E of 12.65 [6] - The Mining - Miscellaneous industry, part of the Basic Materials sector, has a Zacks Industry Rank of 145, placing it in the bottom 43% of over 250 industries [6] Group 6 - The Zacks Industry Rank measures the strength of industry groups based on the average Zacks Rank of individual stocks, with top-rated industries outperforming the bottom half by a factor of 2 to 1 [7]

Group 1 - Cameco's stock closed at $50.36, reflecting a +0.86% increase, outperforming the S&P 500's gain of 0.67% [1] - Over the past month, Cameco's shares have increased by 1.4%, while the Basic Materials sector gained 6.91% and the S&P 500 gained 2.07% [1] Group 2 - Cameco is expected to release earnings on February 20, 2025, with projected earnings per share (EPS) of $0.23, indicating a 53.33% increase year-over-year [2] - Revenue is projected to be $735.56 million, reflecting an 18.64% rise from the same quarter last year [2] Group 3 - Recent modifications to analyst estimates for Cameco indicate a favorable outlook on the company's business health and profitability [3] - The Zacks Rank system, which includes estimate changes, has a history of outperforming, with 1 stocks returning an average annual gain of +25% since 1988 [4][5] Group 4 - Cameco is currently trading at a Forward P/E ratio of 39.5, significantly higher than the industry average of 12.11, indicating a premium valuation [6] - The Mining - Miscellaneous industry, part of the Basic Materials sector, holds a Zacks Industry Rank of 143, placing it in the bottom 44% of over 250 industries [6][7]

Company Performance - Cameco's stock closed at $49.44, down 1.71% from the previous trading day, underperforming the S&P 500's loss of 0.51% [1] - Over the last month, Cameco's shares decreased by 3.57%, while the Basic Materials sector gained 4.34% and the S&P 500 gained 2.87% [1] Upcoming Earnings - Cameco's earnings report is scheduled for February 20, 2025, with projected earnings per share (EPS) of $0.18, representing a 20% increase year-over-year [2] - Revenue is estimated to be $735.56 million, indicating an 18.64% increase compared to the same quarter last year [2] Analyst Estimates - Recent adjustments to analyst estimates for Cameco reflect changing business trends, with positive revisions indicating analyst optimism about the company's profitability [3] - The Zacks Consensus EPS estimate has decreased by 5.11% in the past month, and Cameco currently holds a Zacks Rank of 3 (Hold) [5] Valuation Metrics - Cameco's Forward P/E ratio is 39.79, which is significantly higher than the industry average Forward P/E of 11.26 [6] - The Mining - Miscellaneous industry, part of the Basic Materials sector, has a Zacks Industry Rank of 140, placing it in the bottom 45% of over 250 industries [6] Industry Insights - The Zacks Industry Rank measures the strength of industry groups based on the average Zacks Rank of individual stocks, with the top 50% outperforming the bottom half by a factor of 2 to 1 [7]

Group 1: Market Impact - The announcement of DeepSeek's AI development has led to a significant sell-off in uranium mining stocks, with Denison Mines down 9%, Uranium Energy down 10.1%, and Cameco down 13.2% [2] - Uranium prices were already in a downturn, having fallen 34% from a recent high of nearly $70 per pound to just under $70 [4] - The resumption of uranium production by Cameco's Inkai joint venture adds further supply to a market already facing declining prices [5][6] Group 2: Demand and Supply Dynamics - There are concerns that demand for nuclear power may not be as strong as previously anticipated, particularly in light of the new AI developments [5] - The long-term trend indicates a tug of war between uranium demand and increased production, which could keep prices in balance [9] - The break-even point for uranium mining is around $60 per pound, suggesting that current prices are still above this threshold, but profitability for companies like Denison and Uranium Energy has been declining [8][9] Group 3: Company Performance - Denison and Uranium Energy have reported losses for three consecutive quarters, while Cameco's profits have significantly decreased compared to the previous year [10] - Current valuations do not support a recommendation to buy these money-losing uranium stocks, including Cameco [10]

Investment Rating - The report does not explicitly mention the investment rating for Cameco Corporation [1][2][3] Core Views - The global nuclear power industry is expected to grow rapidly, driven by both the US and China, with the US focusing on nuclear power as a solution for AI energy demands and China accelerating nuclear power projects [7] - Uranium supply is a critical factor in the industry, with increasing demand for nuclear fuel expected to drive uranium prices higher [7] - The global nuclear power industry is gaining renewed attention, with 22 countries signing the "Triple Nuclear Energy Declaration" at COP28, aiming to triple global nuclear power capacity by 2050 [11] - Developing countries are leading the increase in global nuclear power capacity, with new nuclear projects in countries like Egypt, Turkey, and Bangladesh [11] - China's nuclear power capacity is relatively low, with significant growth potential as it aims to replace coal-fired power with cleaner energy sources, particularly nuclear power [12] - China has accelerated its nuclear power project approvals, with 11 new reactors approved in 2024, far exceeding previous expectations [15] - The US faces both challenges and opportunities in nuclear power, with aging infrastructure but also plans to increase nuclear capacity to meet net-zero emissions targets by 2050 [21] - Small modular reactors (SMRs) are expanding the application scenarios for nuclear power, increasing demand for nuclear fuel [23] - Tech giants like Microsoft and Amazon are investing in nuclear power to meet the energy demands of AI and data centers [27] - Data center power demand in the US is expected to grow significantly, with nuclear power being a key solution to meet this demand [30] Industry Overview - Global nuclear power capacity is expected to triple by 2050, driven by the "Triple Nuclear Energy Declaration" and increasing demand for clean energy [11] - Developing countries are leading the growth in nuclear power capacity, with new projects in countries like Egypt, Turkey, and Bangladesh [11] - China's nuclear power capacity is relatively low, with significant growth potential as it aims to replace coal-fired power with cleaner energy sources [12] - China has accelerated its nuclear power project approvals, with 11 new reactors approved in 2024, far exceeding previous expectations [15] - The US faces challenges with aging nuclear infrastructure but also opportunities with plans to increase nuclear capacity to meet net-zero emissions targets by 2050 [21] - Small modular reactors (SMRs) are expanding the application scenarios for nuclear power, increasing demand for nuclear fuel [23] - Tech giants like Microsoft and Amazon are investing in nuclear power to meet the energy demands of AI and data centers [27] - Data center power demand in the US is expected to grow significantly, with nuclear power being a key solution to meet this demand [30] Company Overview - Cameco Corporation is the world's largest uranium resource company, with operations spanning exploration, mining, refining, and nuclear fuel services [45] - The company has a significant presence in the global uranium market, with operations in Canada, Kazakhstan, and the US [45] - Cameco's uranium resource business is its primary revenue driver, with uranium prices significantly impacting its financial performance [52] - The company owns several high-grade uranium mines, including McArthur River/Key Lake and Cigar Lake, which are among the largest and highest-grade uranium mines in the world [60] - Cameco is also involved in nuclear fuel services, including uranium refining, conversion, and fuel manufacturing, with a global market share of around 21% in conversion capacity [66] - The company has expanded its presence in the nuclear power industry through strategic investments, including a 49% stake in Westinghouse Electric and a 49% stake in Global Laser Enrichment (GLE) [67][70] - Cameco's uranium resource business is expected to benefit from rising uranium prices and increasing global demand for nuclear fuel, with revenue projected to grow significantly from 2024 to 2026 [74] - The company's nuclear fuel services business is also expected to grow, driven by increasing demand for nuclear fuel and higher prices for uranium products [78] Valuation - Cameco is expected to see significant revenue and profit growth from 2024 to 2026, driven by rising uranium prices and increasing demand for nuclear fuel [81] - The company's revenue is projected to reach CAD 2.94 billion in 2024, CAD 3.36 billion in 2025, and CAD 3.74 billion in 2026, with net income expected to grow to CAD 370 million, CAD 670 million, and CAD 850 million respectively [81] - Cameco's strong position in the global uranium market, combined with its strategic investments in Westinghouse and GLE, is expected to drive long-term growth and solidify its leadership in the nuclear power industry [81]

Retirement Planning - The Retirement Forum offers actionable ideas, a high-yield safe retirement portfolio, and macroeconomic outlooks to help maximize capital and income [1] - The forum searches the entire market to help maximize returns [1] Cameco Corporation (CCJ) - Cameco Corporation is the largest publicly traded uranium company globally with a market cap exceeding $20 billion [2] - Nuclear power has substantial potential as reliable base load power [2] Investment Strategy - The Value Portfolio specializes in building retirement portfolios using a fact-based research strategy [2] - The strategy includes extensive readings of 10Ks, analyst commentary, market reports, and investor presentations [2] - The portfolio invests real money in the stocks it recommends [2]

Nuclear Energy Industry Overview - Nuclear energy is positioned as a key solution for a low-carbon, resilient energy future, driven by global energy demands and geopolitical tensions [3][4] - The industry includes companies involved in uranium mining, nuclear reactor construction, electricity generation, and related technologies and services [3] - The rise of artificial intelligence and data centers has significantly increased the demand for reliable, emissions-free energy, further boosting the nuclear energy sector [4] Cameco (CCJ) Analysis - Cameco is one of the world's largest uranium producers, with assets across three continents, positioning it to benefit from growing nuclear energy demand [5] - The CEO highlighted increasing government, industry, and public support for nuclear energy, with utilities and industrial users extending financial backing for clean, reliable nuclear power [6] - Despite positive long-term trends, the near-term EPS outlook for Cameco remains unfavorable, with analysts cutting expectations across the board [6] - The stock currently holds a Zacks Rank 3 (Hold) [6] Constellation Energy (CEG) Analysis - Constellation Energy is the largest producer of clean, emissions-free energy in the US and a leading supplier of energy products and services [8] - The company has partnered with Microsoft in a 20-year agreement to restart the Crane Clean Energy Center, emphasizing the importance of AI and data economy to national security and economic competitiveness [9] - The near-term outlook for CEG has improved, with the stock maintaining a favorable Zacks Rank 2 (Buy) [10] - Consensus estimates for CEG have shown upward revisions, with Q1 estimates increasing by 9.46% and full-year estimates rising by 1.96% to 2.12% over the past 60 days [11] Thematic Investing Insights - Thematic investing allows investors to align portfolios with emerging trends, combining long-term and short-term themes to identify leading companies in shifting markets [12] - Stocks within thematic screens serve as a starting point for analysis, with tools like the Zacks Rank and detailed reports aiding in performance and potential evaluation [13]

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]