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Cameco (CCJ) Stock Slides as Market Rises: Facts to Know Before You Trade

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In the latest close session, Cameco (CCJ - Free Report) was down 1.02% at $70.82. The stock's change was less than the S&P 500's daily gain of 0.28%. Elsewhere, the Dow gained 0.43%, while the tech-heavy Nasdaq added 0.09%.

The stock of uranium producer has risen by 7.87% in the past month, leading the Basic Materials sector's gain of 0.92% and the S&P 500's gain of 4.37%.

The upcoming earnings release of Cameco will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.36, reflecting a 260% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $681.82 million, reflecting a 56% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $1.09 per share and a revenue of $2.51 billion, demonstrating changes of +122.45% and +10.16%, respectively, from the preceding year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Cameco. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.74% higher. Right now, Cameco possesses a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Cameco has a Forward P/E ratio of 65.82 right now. Its industry sports an average Forward P/E of 17.65, so one might conclude that Cameco is trading at a premium comparatively.

The Mining - Miscellaneous industry is part of the Basic Materials sector. With its current Zacks Industry Rank of 148, this industry ranks in the bottom 41% of all industries, numbering over 250.

The Zacks Industry Rank is ordered 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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