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Cameco (CCJ) Stock Sinks As Market Gains: What You Should Know

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Cameco (CCJ - Free Report) closed the most recent trading day at $20.89, moving -0.62% from the previous trading session. This change lagged the S&P 500's 0.36% gain on the day. Meanwhile, the Dow gained 0.23%, and the Nasdaq, a tech-heavy index, lost 0.1%.

Prior to today's trading, shares of the uranium producer had lost 22.15% over the past month. This has was narrower than the Basic Materials sector's loss of 25.75% and lagged the S&P 500's loss of 6.59% in that time.

Cameco will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of -$0.03, up 62.5% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.11 per share and revenue of $1.45 billion, which would represent changes of +155% and +23.07%, respectively, from the prior 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 past month, the Zacks Consensus EPS estimate remained stagnant. Cameco is holding a Zacks Rank of #1 (Strong Buy) right now.

Looking at its valuation, Cameco is holding a Forward P/E ratio of 191.09. Its industry sports an average Forward P/E of 6.42, 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 group has a Zacks Industry Rank of 91, putting it in the top 37% of all 250+ industries.

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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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