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Here's Why Cameco (CCJ) Fell More Than Broader Market

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In the latest close session, Cameco (CCJ - Free Report) was down 4.37% at $83.09. This change lagged the S&P 500's 0.29% loss on the day. On the other hand, the Dow registered a loss of 0.37%, and the technology-centric Nasdaq decreased by 0.34%.

The uranium producer's stock has climbed by 13.57% in the past month, exceeding the Basic Materials sector's gain of 4.35% and the S&P 500's gain of 3.08%.

The investment community will be paying close attention to the earnings performance of Cameco in its upcoming release. The company's earnings per share (EPS) are projected to be $0.22, reflecting a 2300% increase from the same quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.14 per share and a revenue of $2.54 billion, indicating changes of +132.65% and +11.32%, respectively, from the former year.

Investors might also notice recent changes to analyst estimates for Cameco. These revisions typically reflect the latest short-term business trends, which can change frequently. 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 take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 7.2% lower. At present, Cameco boasts a Zacks Rank of #3 (Hold).

Digging into valuation, Cameco currently has a Forward P/E ratio of 76.33. This indicates a premium in contrast to its industry's Forward P/E of 17.94.

The Mining - Miscellaneous industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 156, putting it in the bottom 37% of all 250+ industries.

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.

To follow CCJ in the coming trading sessions, be sure to utilize Zacks.com.


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