Should You Buy Cameco While It's Below $124?

Group 1: Company Overview - Cameco is closely linked to the nuclear power industry as a supplier, primarily involved in mining and processing uranium, and has recently acquired half of Westinghouse, which provides services to the nuclear sector [2] - The company operates in a volatile uranium market, where prices fluctuate based on supply and demand dynamics, although it uses long-term contracts to stabilize cash flows [4] Group 2: Market Demand and Supply Dynamics - There is currently high demand for nuclear power driven by increasing electricity needs from technologies like artificial intelligence and electric vehicles, which has generated investor interest in the uranium sector [5] - Cameco anticipates a supply-demand gap by 2030, which could widen over time, potentially leading to significant increases in uranium prices if demand trends continue [7] Group 3: Stock Performance and Valuation - Over the past five years, Cameco's stock price has surged by more than 800%, with current price-to-sales and price-to-book ratios indicating that the stock may be overvalued compared to historical averages [8]