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Here's Why Cameco (CCJ) Fell More Than Broader Market

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In the latest trading session, Cameco (CCJ - Free Report) closed at $42.63, marking a -1.43% move from the previous day. This move lagged the S&P 500's daily loss of 0.33%. Elsewhere, the Dow saw a downswing of 0.37%, while the tech-heavy Nasdaq depreciated by 0.53%.

The the stock of uranium producer has fallen by 3.29% in the past month, lagging the Basic Materials sector's gain of 0.7% and overreaching the S&P 500's loss of 4.03%.

Market participants will be closely following the financial results of Cameco in its upcoming release. The company's earnings per share (EPS) are projected to be $0.26, reflecting a 160% increase from the same quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.03 per share and a revenue of $2.54 billion, signifying shifts of +110.2% and +11.24%, respectively, from the last year.

Investors should also pay attention to any latest changes in analyst estimates for Cameco. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 15.43% decrease. Cameco is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Cameco is presently being traded at a Forward P/E ratio of 42.13. Its industry sports an average Forward P/E of 13.6, so one might conclude that Cameco is trading at a premium comparatively.

The Mining - Miscellaneous industry is part of the Basic Materials sector. With its current Zacks Industry Rank of 169, this industry ranks in the bottom 33% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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