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Cameco (CCJ) Falls More Steeply Than Broader Market: What Investors Need to Know

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Cameco (CCJ - Free Report) closed the latest trading day at $49.59, indicating a -1.74% change from the previous session's end. The stock trailed the S&P 500, which registered a daily loss of 1.46%. Meanwhile, the Dow lost 1.24%, and the Nasdaq, a tech-heavy index, lost 1.63%.

The the stock of uranium producer has risen by 26.33% in the past month, leading the Basic Materials sector's gain of 3.2% and the S&P 500's gain of 1.6%.

Market participants will be closely following the financial results of Cameco in its upcoming release. The company's upcoming EPS is projected at $0.33, signifying a 65% increase compared to the same quarter of the previous year.

It's also important for investors to be aware of any recent modifications 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate has shifted 10.69% downward. Right now, Cameco possesses a Zacks Rank of #5 (Strong Sell).

Digging into valuation, Cameco currently has a Forward P/E ratio of 32.67. This expresses a premium compared to the average Forward P/E of 16.47 of its industry.

The Mining - Miscellaneous industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 158, finds itself in the bottom 38% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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 to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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