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

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Cameco (CCJ - Free Report) closed at $27.97 in the latest trading session, marking a +1.67% move from the prior day. This change lagged the S&P 500's 3.06% gain on the day. Elsewhere, the Dow gained 2.8%, while the tech-heavy Nasdaq added 0.16%.

Heading into today, shares of the uranium producer had lost 4.55% over the past month, lagging the Basic Materials sector's loss of 1.23% and outpacing the S&P 500's loss of 6.15% 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 -$0.02, up 81.82% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.21 per share and revenue of $1.47 billion. These totals would mark changes of +205% and +24.57%, 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 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Cameco is currently a Zacks Rank #3 (Hold).

Investors should also note Cameco's current valuation metrics, including its Forward P/E ratio of 134.2. This represents a premium compared to its industry's average Forward P/E of 8.57.

The Mining - Miscellaneous industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 143, which puts it in the bottom 44% 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.

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