Cameco Stock Surges 50% Amid Nuclear Renaissance, But High Multiples and 412th Trading Volume Rank Spark Caution

Cameco (CCJ) rose 0.98% on August 11, 2025, with a trading volume of $0.25 billion, ranking 412th in the market. Despite a 30% decline in uranium prices from 2024 peaks to $72 per pound, the stock has surged over 50% this year, driven by long-term demand for nuclear energy and supportive policy shifts. The company’s tier-one mining assets and 49% stake in Westinghouse position it as a key beneficiary of expanding nuclear power infrastructure and military applications.

Recent earnings highlighted strong performance, with consolidated revenue jumping 47% year-over-year to $633 million, fueled by higher uranium sales and a 47% revenue increase in the uranium segment. Westinghouse’s adjusted EBITDA more than doubled to $352 million, reflecting progress on reactor projects in the Czech Republic. Free cash flow rose 79% to $465 million, and management raised its 2025 uranium price forecast to $87 per pound. However, production challenges at key mines and a projected slowdown in H2 growth underscore near-term risks.

Valuation concerns persist, with CCJ trading at 85x trailing earnings and 12.7x sales—well above sector averages. Analysts remain bullish, with 18 of 20 rating the stock a “buy,” but average price targets align closely with current levels, suggesting limited immediate upside unless uranium prices rebound or guidance is raised. The stock’s momentum reflects confidence in nuclear energy’s role in decarbonization and defense modernization, though elevated multiples leave little room for error in a commodity-sensitive sector.

The strategy of purchasing the top 500 stocks by daily trading volume and holding them for one day generated a 166.71% return from 2022 to the present, significantly outperforming the benchmark’s 29.18% gain. This highlights the impact of liquidity concentration in volatile markets, where high-volume stocks often drive short-term price movements. The approach’s success underscores the importance of liquidity in amplifying returns, particularly in environments where fundamentals are less dominant in the near term.