The Smartest Nuclear Stock to Buy With $500 Right Now

Company Overview - Cameco is one of the largest global providers of uranium fuel, with a controlling stake in the world's largest high-grade uranium reserves and low production costs of less than $46 per pound by 2025, compared to a current spot price of over $85 per pound [4][6] - The company owns a 49% stake in Westinghouse Electric Company and Global Laser Enrichment, enhancing its position in the nuclear energy sector [5] Financial Performance - Cameco's revenue is divided into three segments, with uranium mining contributing $1.3 billion in the first nine months of 2025, while refining and enriching uranium added $279 million [6] - The company generates approximately $2.2 billion in annual revenue, with a profit margin that has increased from 8% to 23% year-to-date [7][10] - Despite a market valuation exceeding $50 billion, Cameco earned less than $378 million over the last 12 months, resulting in a trailing price-to-earnings ratio of 134 [9] Competitive Position - Cameco is one of the few profitable companies in the nuclear power industry, contrasting with competitors like Uranium Energy and Energy Fuels, which report no profits [8][9] - The company's free cash flow is notable, nearly doubling its reported net income to $698 million, leading to a price-to-free-cash-flow ratio of 72 [10] Growth Potential - Analysts predict that Cameco will achieve the highest growth rate in the industry over the next five years, estimating a 75% annual growth rate [10] - The Westinghouse division is expected to benefit from an $80 billion investment in large nuclear power plants in the U.S., which could further enhance Cameco's profitability [12][13] - Achieving the aggressive earnings growth target of 75% could justify the current valuation, even with a price-to-free-cash-flow ratio of 72 [14]