Cameco Stock Dives 0.44% to 2025 Low Amid Uranium Sector Uncertainty

Cameco Corporation’s stock hit its lowest level since October 2025 on October 10, 2025, with an intraday decline of 0.44%. The share price closed with a 0.09% drop, underscoring renewed investor caution amid mixed signals from the uranium sector. Analysts have highlighted the stock’s sensitivity to both macroeconomic shifts and supply-demand dynamics in the nuclear energy market.

Recent analyst activity has fueled optimism about Cameco’s long-term potential. National Bank upgraded its price target to C$115 from C$110, citing improved uranium market fundamentals and the company’s strategic position in nuclear fuel services. Similarly, Canaccord Genuity raised its price target, emphasizing Cameco’s ability to capitalize on sustained global demand for nuclear energy. These upgrades reflect confidence in the firm’s earnings trajectory, particularly with analysts projecting a 2300% year-over-year surge in Q3 2026 earnings per share.

However, the stock’s valuation remains a point of contention. Despite strong earnings growth expectations, Cameco trades at a forward P/E ratio of 75.04—well above the industry average of 19.81. This premium underscores the market’s willingness to pay for anticipated growth but also introduces risks if uranium prices or earnings fail to meet lofty forecasts. The Mining - Miscellaneous industry’s weak Zacks Industry Rank (144) further highlights sector-wide challenges, including regulatory pressures and supply chain uncertainties.

Strategic developments also shape the outlook. Cameco’s 49% stake in Westinghouse, a nuclear power company, ties its performance to broader energy transitions and geopolitical factors. While the Zacks Consensus Estimates project 128.57% EPS growth for 2026, downward revisions in recent months—though modest—signal cautious sentiment. Investors are closely watching the upcoming earnings report to gauge execution against these ambitious targets.

Despite near-term volatility, Cameco remains a focal point in the uranium sector. Analysts and investors alike are balancing its growth potential with valuation risks and sector-specific headwinds. The company’s ability to navigate these dynamics will be critical in determining whether its outperformance persists in the evolving nuclear energy landscape.