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Cameco (CCJ) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Cameco (CCJ) closed at $25, marking a -1.85% move from the previous day. This change lagged the S&P 500's 1.64% loss on the day. At the same time, the Dow lost 1.05%, and the tech-heavy Nasdaq lost 0.41%.

Coming into today, shares of the uranium producer had gained 4.04% in the past month. In that same time, the Basic Materials sector gained 3.76%, while the S&P 500 gained 0.73%.

Cameco will be looking to display strength as it nears its next earnings release. In that report, analysts expect Cameco to post earnings of -$0.03 per share. This would mark year-over-year growth of 62.5%.

CCJ's full-year Zacks Consensus Estimates are calling for earnings of $0.11 per share and revenue of $1.45 billion. These results would represent year-over-year changes of +155% and +23.07%, respectively.

It is also important to note the recent changes to analyst estimates for Cameco. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 69.23% higher within the past month. Cameco is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Cameco has a Forward P/E ratio of 231.54 right now. Its industry sports an average Forward P/E of 9.21, so we one might conclude that Cameco is trading at a premium comparatively.

The Mining - Miscellaneous industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 86, which puts it in the top 34% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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