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Cameco (CCJ) Sees a More Significant Dip Than Broader Market: Some Facts to Know

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Cameco (CCJ - Free Report) closed at $89.07 in the latest trading session, marking a -4.25% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.22%. Elsewhere, the Dow lost 0.66%, while the tech-heavy Nasdaq lost 0.22%.

The uranium producer's stock has dropped by 8.78% in the past month, falling short of the Oils-Energy sector's gain of 2.42% and the S&P 500's gain of 1.4%.

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 $0.23, reflecting a 360% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $494.94 million, showing a 10.91% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $1.07 per share and revenue of $2.44 billion, which would represent changes of +3.88% and -2.09%, respectively, from the prior year.

Any recent changes to analyst estimates for Cameco should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, 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 4.17% lower. Cameco presently features a Zacks Rank of #5 (Strong Sell).

Investors should also note Cameco's current valuation metrics, including its Forward P/E ratio of 86.8. Its industry sports an average Forward P/E of 17.95, so one might conclude that Cameco is trading at a premium comparatively.

Investors should also note that CCJ has a PEG ratio of 1.89 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Alternative Energy - Other industry held an average PEG ratio of 2.05.

The Alternative Energy - Other industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 92, placing it within the top 38% of over 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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