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Cameco (CCJ) Gains But Lags Market: What You Should Know

·2 min read

Cameco (CCJ) closed at $30.29 in the latest trading session, marking a +0.26% move from the prior day. This move lagged the S&P 500's daily gain of 1.06%. Meanwhile, the Dow gained 0.71%, and the Nasdaq, a tech-heavy index, added 0.18%.

Prior to today's trading, shares of the uranium producer had gained 18.66% over the past month. This has outpaced the Basic Materials sector's gain of 2.82% and the S&P 500's loss of 1.14% in that time.

Cameco will be looking to display strength as it nears its next earnings release. In that report, analysts expect Cameco to post earnings of -$0.02 per share. This would mark year-over-year growth of 81.82%.

CCJ's full-year Zacks Consensus Estimates are calling for earnings of $0.21 per share and revenue of $1.47 billion. These results would represent year-over-year changes of +205% and +24.57%, respectively.

Investors should also note any recent changes to analyst estimates for Cameco. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.

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. Within the past 30 days, our consensus EPS projection remained stagnant. 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 147.37 right now. For comparison, its industry has an average Forward P/E of 8.31, which means Cameco is trading at a premium to the group.

The Mining - Miscellaneous industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 167, which puts it in the bottom 34% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

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

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