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Cameco (CCJ) Stock Sinks As Market Gains: Here's Why

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Cameco (CCJ - Free Report) closed the most recent trading day at $47.76, moving -0.46% from the previous trading session. This move lagged the S&P 500's daily gain of 0.42%. Elsewhere, the Dow gained 0.04%, while the tech-heavy Nasdaq added 0.38%.

Coming into today, shares of the uranium producer had gained 17.48% in the past month. In that same time, the Basic Materials sector gained 5.24%, while the S&P 500 gained 2.06%.

The upcoming earnings release of Cameco will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.39, reflecting a 62.5% increase from the same quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.90 per share and revenue of $2.23 billion. These totals would mark changes of +57.89% and +16.39%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Cameco. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 15.49% decrease. As of now, Cameco holds a Zacks Rank of #3 (Hold).

In terms of valuation, Cameco is currently trading at a Forward P/E ratio of 53.31. This valuation marks a premium compared to its industry's average Forward P/E of 16.6.

The Mining - Miscellaneous industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 160, which puts it in the bottom 37% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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