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

In the latest trading session, Cameco (CCJ) closed at $106.60, marking a -2.56% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.28% for the day. Elsewhere, the Dow lost 0.44%, while the tech-heavy Nasdaq lost 0.28%.

Shares of the uranium producer have depreciated by 6.09% over the course of the past month, underperforming the Oils-Energy sector's gain of 8.87%, and the S&P 500's loss of 3.59%.

The upcoming earnings release of Cameco will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.35, reflecting a 218.18% increase from the same quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $1.57 per share and a revenue of $2.5 billion, demonstrating changes of +52.43% and +0.54%, respectively, from the preceding year.

Investors should also note any recent changes to analyst estimates for Cameco. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.36% lower. At present, Cameco boasts a Zacks Rank of #3 (Hold).

With respect to valuation, Cameco is currently being traded at a Forward P/E ratio of 69.59. This expresses a premium compared to the average Forward P/E of 18.85 of its industry.

The Alternative Energy - Other industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 146, putting it in the bottom 41% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. 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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Cameco Corporation (CCJ): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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