The world's biggest publicly traded uranium producer faces near-term challenges.The spot price for uranium, the crucial element for producing nuclear power, has roughly doubled over the past five years. That growth was fueled by the world's renewed interest in nuclear power as a clean energy source, geopolitical conflicts driving more markets away from fossil fuels, and rapid expansion of the power-hungry artificial intelligence, cloud, and data center markets.Bank of America expects uranium's spot price to ...

Cameco Corporation (CCJ) is scheduled to report first-quarter 2025 results on May 1, before the opening bell.The Zacks Consensus Estimate for CCJ’s earnings for the first quarter is pegged at 21 cents per share, which indicates a 110% improvement from the prior-year quarter’s figure. Over the past 60 days, the estimate has moved up 31.25%. Image Source: Zacks Investment ResearchCameco’s Earnings Surprise HistoryCameco’s earnings missed the Zacks Consensus Estimate in three of the trailing four quarters, whi ...

The case for uranium’s long-term growth is a familiar one, and it goes something like this: there’s a vast network of reactors currently under construction in China, India, and the restAnalyst’s Disclosure: I/we have a beneficial long position in the shares of CCJ either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company ...

Group 1 - Cameco's stock closed at $44.85, reflecting a +1.49% change, outperforming the S&P 500's loss of 0.22% [1] - Over the past month, Cameco's stock has decreased by 5.07%, which is worse than the Basic Materials sector's loss of 0.38% and the S&P 500's loss of 7.48% [1] Group 2 - The upcoming earnings release is projected to show earnings of $0.26 per share, indicating a year-over-year growth of 160% [2] - For the annual period, earnings are expected to be $1.02 per share and revenue at $2.54 billion, reflecting increases of +108.16% and +11.24% respectively [2] Group 3 - Recent shifts in analyst projections for Cameco are important as they reflect changes in short-term business dynamics [3] - Positive revisions in estimates indicate analysts' confidence in the company's performance and profit potential [3] Group 4 - Estimate alterations are linked to stock price performance, and the Zacks Rank system is designed to leverage this relationship [4] - The Zacks Rank system ranges from 1 (Strong Buy) to 5 (Strong Sell) and has shown an average annual return of +25% for 1 ranked stocks since 1988 [5] Group 5 - Currently, Cameco has a Zacks Rank of 5 (Strong Sell), with a 19.94% decrease in the Zacks Consensus EPS estimate over the last 30 days [5] - Cameco's Forward P/E ratio is 43.32, significantly higher than the industry's average Forward P/E of 13.15 [6] Group 6 - The Mining - Miscellaneous industry, part of the Basic Materials sector, has a Zacks Industry Rank of 173, placing it in the bottom 32% of over 250 industries [6] - The Zacks Industry Rank measures the strength of industry groups based on the average Zacks Rank of individual stocks [7]

Core Viewpoint - Cameco's stock price has recently declined significantly due to concerns that China may have developed a less energy-intensive version of AI, which raises questions about the role of nuclear power in powering data centers [1] Group 1 - The decline in Cameco's stock is primarily attributed to the potential impact of China's advancements in AI technology on energy consumption [1] - The news challenges the investment thesis that nuclear power will be a key energy source for data centers, leading to increased uncertainty among traders [1]

Core Viewpoint - Cameco (CCJ) shares have declined significantly, with a year-to-date drop of 20.9%, contrasting with the industry's return of 2.8% and the S&P 500's decline of 4.9% [1][4]. Group 1: Stock Performance and Market Context - The decline in Cameco's stock aligns with a 29% decrease in uranium prices over the past year, including a 12% drop this year [4]. - Cameco's stock is currently trading below its 50-day and 200-day moving averages, indicating a bearish trend following a death crossover on March 4, 2025 [5][6]. - Peer Centrus Energy (LEU) has seen an 11% gain this year, highlighting the relative underperformance of Cameco [4]. Group 2: Financial Performance - For FY24, Cameco's revenues rose 21% year-over-year to $2.2 billion (CAD $3.14 billion), driven by higher sales volumes and improved average realized prices [8]. - In the uranium segment, sales volume increased by 5% and prices rose by 17%, contributing to a 24% increase in full-year revenues [9]. - Adjusted earnings per share were reported at 47 cents (CAD 0.67), down 24% year-over-year but above the consensus estimate of 42 cents [10]. Group 3: Production and Future Outlook - Cameco plans to produce 18 million pounds of uranium at both McArthur River/Key Lake and Cigar Lake in 2025, with projected uranium deliveries of 31-34 million pounds [11][12]. - Production from the joint venture Inkai faced challenges, with a total production of 7.8 million pounds in 2024, slightly lower than the previous year due to supply chain issues [15]. - Kazakhstan's new Mineral Extraction Tax (MET) will increase from 6% to 9% in 2025, impacting Cameco's cost structure [16]. Group 4: Market Valuation and Investment Considerations - Cameco's stock is trading at a forward price-to-sales ratio of 6.84, significantly higher than the industry's 1.08 and above its five-year median of 6.05 [20]. - The company's Value Score of F indicates a stretched valuation, suggesting that the stock is not currently cheap [21]. - Despite the challenges, Cameco aims to maintain financial strength and flexibility to boost production and capitalize on market opportunities [22].

Company Overview - Cameco is primarily a uranium miner, involved in the extraction and processing of uranium for nuclear power plants. The company also has a stake in Westinghouse, which provides construction and maintenance services for nuclear facilities [2]. Industry Trends - There is a nuclear power renaissance in the United States, driven by the need for reliable base-load power as the world transitions from carbon-based energy sources to cleaner alternatives. Nuclear power is seen as a viable solution since it does not emit carbon dioxide [5][6]. - New reactor designs are being developed that are expected to be safer and more cost-effective than older models, including large-scale reactors and small modular reactors [6]. Market Dynamics - The price of uranium has been volatile, experiencing a decline after a multi-year increase, which has impacted Cameco's stock performance. Over the past three years, Cameco's shares have increased by over 90%, but in the last three months, the stock has lost more than 25% of its value [3][4]. - The market's perception of nuclear power's future plays a significant role in stock price movements. A positive outlook may present buying opportunities, while a negative view could indicate a longer-term trend of decline [8]. Investment Considerations - For risk-averse investors, Cameco may not be the ideal choice, as investing in utilities that own nuclear power plants could be a safer option. Conversely, for risk-tolerant investors with a long-term positive outlook on nuclear power, Cameco could provide direct exposure to the sector, albeit with expected volatility [9].

Group 1 - Cameco Corporation is recognized as one of the world's leading producers of uranium, with significant operations in conversion and fuel services, bolstered by the recent acquisition of Westinghouse [1][2] - The company holds a strong position in uranium through Tier 1 assets and strategic joint ventures, including partnerships with Orano and Kazatomprom for the Inkai asset [3] - Currently, Cameco maintains supply discipline, with 30% of its licensed and permitted capacity in care and maintenance due to market conditions [3] Group 2 - The conference call features Grant Isaac, the Executive Vice President and CFO of Cameco, who will provide insights and address questions regarding the company's operations and market strategy [1][2] - The focus of the discussion will include the company's uranium properties and the potential for further uranium production upside [3]

Core Viewpoint - Cameco's recent fourth-quarter and 2024 results showed strong revenue growth, but the stock has declined due to concerns over annual earnings and specific operational challenges [1][2][32]. Financial Performance - Fourth-quarter revenues increased by 36.5% year over year to $846 million (CAD 1,183 million), surpassing the Zacks Consensus Estimate of $753 million [8]. - Earnings per share (EPS) for the fourth quarter were 26 cents (CAD 0.36), beating the consensus estimate of 23 cents [8]. - For 2024, revenues rose 21% year over year to $2.2 billion (CAD 3.14 billion), exceeding the Zacks Consensus Estimate of $2.15 billion [11]. - Adjusted EPS for 2024 was 47 cents (CAD 0.67), down 24% year over year but above the consensus estimate of 42 cents [12]. Production and Sales - In Q4, Cameco produced 6.1 million pounds of uranium, a 7% increase from the previous year, and sold 12.8 million pounds, a 30% increase [9]. - The average realized uranium price rose 12% year over year to $58.45 per pound, contributing to a 48% increase in uranium revenues [9]. - For 2024, uranium sales volume grew by 5% and prices increased by 17%, leading to a 24% increase in uranium segment revenues [11]. Operational Challenges - Production from the Inkai joint venture was 7.8 million pounds, with Cameco's share being 3.6 million pounds, which was 0.6 million pounds lower than in 2023 due to supply-chain issues [16]. - The new Mineral Extraction Tax (MET) in Kazakhstan will increase from 6% to 9% in 2025, impacting future production costs [17]. Dividend and Financial Strategy - Cameco increased its annual dividend by 33% to 16 cents per share and plans to implement a growth plan to reach 24 cents per share by 2026 [19]. - The company ended 2024 with C$600 million ($422 million) in cash and C$1.3 billion ($0.91 billion) in long-term debt, indicating a solid balance sheet for future investments [20]. Market Position and Outlook - Cameco's return on equity stands at 5.6%, significantly higher than the industry average of 1.7% [25]. - The stock is trading at a forward price-to-sales ratio of 7.71, above the industry average of 1.00, suggesting a premium valuation [26]. - The global focus on nuclear energy due to geopolitical events and climate concerns positions Cameco favorably to capitalize on rising low-carbon energy demand [28].

Group 1: Technical Analysis and Stock Performance - The 200-day simple moving average (SMA) is a significant technical indicator for traders, serving as a barometer for overall stock sentiment [1] - Stocks trading above their 200-day SMA may indicate overbought conditions, while those below may signal potential upward movement [1][2] - Freeport-McMoRan (FCX) stock is currently about 15% below its 200-day SMA and near its 52-week low, despite showing potential for sharp movements [6] Group 2: Freeport-McMoRan (FCX) Insights - FCX stock has a 12-month price forecast of $51.46, indicating a 39.20% upside based on 15 analyst ratings [3] - The stock is down 9.1% in the last six months, despite a 3.16% increase in 2025 [4] - The company is expected to resume copper shipments in February 2025, which could positively impact stock performance [5] Group 3: Generac Holdings Inc. (GNRC) Overview - Generac's stock has a 12-month price forecast of $174.00, suggesting a 26.20% upside based on 21 analyst ratings [7] - The company reported strong earnings due to stormy weather causing power outages, which has temporarily halted the stock's decline [8][9] - GNRC stock is consolidating around its 10-day SMA and is about 10% below its 200-day SMA, with the next earnings report expected in April [10] Group 4: Cameco Corp. (CCJ) Analysis - Cameco has a 12-month price forecast of $66.56, indicating a 52.81% upside based on 7 analyst ratings [11] - The stock has been in a bullish trend since 2020, with increased momentum in 2024 due to a positive shift in global attitudes toward nuclear power [12] - Cameco is expected to report significantly higher year-over-year revenue and earnings on February 20 [12][13]