Cameco's Stock Surge: Key Drivers and Future Outlook
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Source: Fool
- Strong Stock Performance: Cameco's stock has risen 26% this year while the S&P 500 has remained nearly flat, indicating robust market performance and reflecting investor confidence in its future growth potential.
- Uranium Price Recovery: The spot price of uranium has surged from $35 per pound in 2020 to $84.25 at the end of March this year, with expectations to reach $100-$125, providing strong support for Cameco's profitability.
- Business Diversification Strategy: Cameco is gradually diversifying its business by increasing its stake in Global Laser Enrichment (GLE) from 24% to 49% and partnering with Brookfield Asset Management to acquire Westinghouse Electric, thereby reducing direct exposure to uranium prices.
- Future Growth Expectations: Analysts expect Cameco's revenue and adjusted EBITDA to grow at CAGRs of 8% and 12% from 2025 to 2028, and despite its current enterprise value of $69.3 billion indicating a high valuation, it still demonstrates reliability in the nuclear market.
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Analyst Views on CCJ
Wall Street analysts forecast CCJ stock price to fall
12 Analyst Rating
11 Buy
1 Hold
0 Sell
Strong Buy
Current: 115.540
Low
71.80
Averages
105.67
High
118.78
Current: 115.540
Low
71.80
Averages
105.67
High
118.78
About CCJ
Cameco Corporation is a provider of uranium fuel to generate baseload electricity around the globe. Its segments include uranium, fuel services and Westinghouse. The uranium segment involves the exploration for, mining, milling, purchase and sale of uranium concentrate. The fuel services segment involves the refining, conversion and fabrication of uranium concentrate and the purchase and sale of conversion services. The Westinghouse segment reflects its earnings from this equity-accounted investment. Westinghouse is a nuclear reactor technology original equipment manufacturer and a global provider of products and services to commercial utilities and government agencies. It provides outage and maintenance services, engineering support, instrumentation and controls equipment, plant modification, and components and parts to nuclear reactors. It has two operating mines, Cigar Lake and McArthur River as well as a mill at Key Lake. It also has ownership interests in Global Laser Enrichment.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Uranium Producers Thrive in Electrification Supercycle
- Surging Electricity Demand: According to a report by the International Energy Agency, global electricity demand is expected to rise by 40% by 2035, primarily driven by climate change-induced cooling needs and the growth of data centers and AI, indicating a favorable trend for uranium producers.
- Cameco's Financial Performance: Over the past five years, Cameco has seen a 76% increase in revenue, a 93% rise in dividends, a 628% increase in return on invested capital (ROIC), and a 134% growth in free cash flow, demonstrating strong profitability growth, with 2025 revenue reaching $3.48 billion and EPS up 246%.
- Strategic Value of Westinghouse Acquisition: By acquiring a 49% stake in Westinghouse, Cameco has transformed into an integrated nuclear fuel leader, with Westinghouse contributing $219 million in adjusted EBITDA in 2025, which is expected to further enhance earnings in the future.
- Competitive Advantage in the Industry: Cameco holds majority interests in two Tier 1 operating mines in Saskatchewan and minority interests in several others, providing it with a significant competitive edge in uranium mining, effectively mitigating challenges from new entrants.
See More
Cameco's Strong Financial Performance in Uranium Sector
- Significant Revenue Growth: Cameco has achieved a 76% revenue increase over the past five years, with 2025 revenue reaching $3.48 billion, an 11% year-over-year growth, indicating strong demand and profitability in the uranium market.
- Enhanced Profitability: The company's earnings per share (EPS) reached $1.35 in 2025, reflecting a remarkable 246% increase from the previous year, showcasing significant progress in profitability and boosting investor confidence.
- Optimized Debt Management: Cameco successfully paid off $200 million of its U.S. term loan, resulting in cash and cash equivalents of $1.2 billion, significantly exceeding its total debt of $1 billion, demonstrating a robust financial position.
- Strategic Acquisition Moves: By acquiring a 49% stake in Westinghouse, Cameco not only strengthened its uranium mining capabilities but also achieved vertical integration through high-margin services and fuel fabrication, further solidifying its leadership in the nuclear energy market.
See More
Market Volatility Creates Investment Opportunities
- Uranium Mining Growth Potential: Cameco, the world's second-largest uranium miner, produced 164 million pounds of uranium last year, accounting for 15% of global output, positioning itself strongly to meet rising nuclear energy demands with its high-grade mines.
- Nuclear Project Boost: With 75 new nuclear reactors under construction globally, Cameco's joint venture with Westinghouse is set to benefit from this trend, projecting an 11% revenue growth by 2025, highlighting its strategic importance in the nuclear market.
- Increased Defense Spending: Lockheed Martin's stock has risen 37% over the past year, and despite a recent 4.6% decline due to market volatility, it is expected to benefit from Trump's proposed $1.5 trillion defense budget, further solidifying its market position.
- Stability and Profitability: Lockheed Martin boasts a 10.3% operating profit margin, and while it carries significant debt, its critical role in the U.S. military provides strong risk resilience, making it a focal point for investors moving forward.
See More
Investment Opportunities Amid Market Turmoil
- Uranium Mining Growth Potential: Cameco, the world's second-largest uranium miner, produced 164 million pounds last year, accounting for 15% of global output, with an expected revenue growth of 11% in 2025, highlighting its strong growth potential amid rising global nuclear energy demand.
- High-Quality Ore Advantage: Cameco's McArthur River and Cigar Lake mines boast average grades of 6.48% and 16.33% uranium, significantly higher than Kazakhstan's average of less than 1%, ensuring its competitive edge in the uranium market.
- Defense Spending Boost: Lockheed Martin's stock has surged 37% over the past 12 months, benefiting from global turmoil and a proposed increase in U.S. defense spending, indicating a likely strengthening of its market position in the future.
- Stability and Growth: Although Lockheed Martin's stock recently fell by 4.6%, its operating profit margin of 10.3% and 6% sales growth suggest that the company maintains strong profitability and market stability in the long run.
See More
Investment Opportunities Amid Market Turmoil
- Uranium Industry Outlook: Cameco, the world's second-largest uranium producer, accounted for 164 million pounds of uranium last year, representing 15% of global production, and with 75 new nuclear reactors under construction worldwide, demand is expected to remain strong, positioning Cameco's high-grade mines as a crucial supply source.
- Strong Financial Performance: Cameco anticipates an 11% revenue growth for 2025, with a net profit margin of 16.93% and a debt-to-equity ratio of only 0.14, demonstrating robust financial health in a capital-intensive industry, making it a solid long-term investment opportunity despite market volatility.
- Increased Defense Spending: Lockheed Martin's stock has risen 37% over the past 12 months, with a 31% increase year-to-date, and despite a recent 4.6% decline, it is expected to benefit from rising defense budgets amid global tensions, indicating a strong growth trajectory.
- Contract Opportunities: Lockheed's sales grew by 6% in 2025, and it secured $77 million in defense contracts in February, underscoring its critical role in the U.S. military, and while it carries high debt, its stability and growth potential continue to attract investor interest.
See More
Cameco: A Key Player in the Global Nuclear Renaissance
- Nuclear Renaissance Trend: According to the World Nuclear Association, 75 reactors are currently under construction globally, with another 120 planned, highlighting the immense potential of nuclear energy as a long-term investment opportunity.
- Leading Uranium Production: Cameco is the world's second-largest uranium producer, generating 164 million pounds in 2025, which accounts for 15% of global output, solidifying its market position behind Kazakhstan's Kazatomprom.
- Strong Financial Performance: In 2025, Cameco reported $3.48 billion in revenue, an 11% increase year-over-year, with earnings per share (EPS) soaring from $0.40 to $1.35, reflecting a remarkable growth rate of 237%.
- Robust Financial Health: The company's debt-to-equity ratio stands at just 0.14, with a net profit margin of 16.9%, showcasing its financial stability and strong performance in the capital-intensive mining sector, laying a solid foundation for future growth.
See More
Uranium Producers Thrive in Electrification Supercycle
- Surging Electricity Demand: According to a report by the International Energy Agency, global electricity demand is expected to rise by 40% by 2035, primarily driven by climate change-induced cooling needs and the growth of data centers and AI, indicating a favorable trend for uranium producers.
- Cameco's Financial Performance: Over the past five years, Cameco has seen a 76% increase in revenue, a 93% rise in dividends, a 628% increase in return on invested capital (ROIC), and a 134% growth in free cash flow, demonstrating strong profitability growth, with 2025 revenue reaching $3.48 billion and EPS up 246%.
- Strategic Value of Westinghouse Acquisition: By acquiring a 49% stake in Westinghouse, Cameco has transformed into an integrated nuclear fuel leader, with Westinghouse contributing $219 million in adjusted EBITDA in 2025, which is expected to further enhance earnings in the future.
- Competitive Advantage in the Industry: Cameco holds majority interests in two Tier 1 operating mines in Saskatchewan and minority interests in several others, providing it with a significant competitive edge in uranium mining, effectively mitigating challenges from new entrants.
See More
Cameco's Strong Financial Performance in Uranium Sector
- Significant Revenue Growth: Cameco has achieved a 76% revenue increase over the past five years, with 2025 revenue reaching $3.48 billion, an 11% year-over-year growth, indicating strong demand and profitability in the uranium market.
- Enhanced Profitability: The company's earnings per share (EPS) reached $1.35 in 2025, reflecting a remarkable 246% increase from the previous year, showcasing significant progress in profitability and boosting investor confidence.
- Optimized Debt Management: Cameco successfully paid off $200 million of its U.S. term loan, resulting in cash and cash equivalents of $1.2 billion, significantly exceeding its total debt of $1 billion, demonstrating a robust financial position.
- Strategic Acquisition Moves: By acquiring a 49% stake in Westinghouse, Cameco not only strengthened its uranium mining capabilities but also achieved vertical integration through high-margin services and fuel fabrication, further solidifying its leadership in the nuclear energy market.
See More
Market Volatility Creates Investment Opportunities
- Uranium Mining Growth Potential: Cameco, the world's second-largest uranium miner, produced 164 million pounds of uranium last year, accounting for 15% of global output, positioning itself strongly to meet rising nuclear energy demands with its high-grade mines.
- Nuclear Project Boost: With 75 new nuclear reactors under construction globally, Cameco's joint venture with Westinghouse is set to benefit from this trend, projecting an 11% revenue growth by 2025, highlighting its strategic importance in the nuclear market.
- Increased Defense Spending: Lockheed Martin's stock has risen 37% over the past year, and despite a recent 4.6% decline due to market volatility, it is expected to benefit from Trump's proposed $1.5 trillion defense budget, further solidifying its market position.
- Stability and Profitability: Lockheed Martin boasts a 10.3% operating profit margin, and while it carries significant debt, its critical role in the U.S. military provides strong risk resilience, making it a focal point for investors moving forward.
See More
Investment Opportunities Amid Market Turmoil
- Uranium Mining Growth Potential: Cameco, the world's second-largest uranium miner, produced 164 million pounds last year, accounting for 15% of global output, with an expected revenue growth of 11% in 2025, highlighting its strong growth potential amid rising global nuclear energy demand.
- High-Quality Ore Advantage: Cameco's McArthur River and Cigar Lake mines boast average grades of 6.48% and 16.33% uranium, significantly higher than Kazakhstan's average of less than 1%, ensuring its competitive edge in the uranium market.
- Defense Spending Boost: Lockheed Martin's stock has surged 37% over the past 12 months, benefiting from global turmoil and a proposed increase in U.S. defense spending, indicating a likely strengthening of its market position in the future.
- Stability and Growth: Although Lockheed Martin's stock recently fell by 4.6%, its operating profit margin of 10.3% and 6% sales growth suggest that the company maintains strong profitability and market stability in the long run.
See More
Investment Opportunities Amid Market Turmoil
- Uranium Industry Outlook: Cameco, the world's second-largest uranium producer, accounted for 164 million pounds of uranium last year, representing 15% of global production, and with 75 new nuclear reactors under construction worldwide, demand is expected to remain strong, positioning Cameco's high-grade mines as a crucial supply source.
- Strong Financial Performance: Cameco anticipates an 11% revenue growth for 2025, with a net profit margin of 16.93% and a debt-to-equity ratio of only 0.14, demonstrating robust financial health in a capital-intensive industry, making it a solid long-term investment opportunity despite market volatility.
- Increased Defense Spending: Lockheed Martin's stock has risen 37% over the past 12 months, with a 31% increase year-to-date, and despite a recent 4.6% decline, it is expected to benefit from rising defense budgets amid global tensions, indicating a strong growth trajectory.
- Contract Opportunities: Lockheed's sales grew by 6% in 2025, and it secured $77 million in defense contracts in February, underscoring its critical role in the U.S. military, and while it carries high debt, its stability and growth potential continue to attract investor interest.
See More
Cameco: A Key Player in the Global Nuclear Renaissance
- Nuclear Renaissance Trend: According to the World Nuclear Association, 75 reactors are currently under construction globally, with another 120 planned, highlighting the immense potential of nuclear energy as a long-term investment opportunity.
- Leading Uranium Production: Cameco is the world's second-largest uranium producer, generating 164 million pounds in 2025, which accounts for 15% of global output, solidifying its market position behind Kazakhstan's Kazatomprom.
- Strong Financial Performance: In 2025, Cameco reported $3.48 billion in revenue, an 11% increase year-over-year, with earnings per share (EPS) soaring from $0.40 to $1.35, reflecting a remarkable growth rate of 237%.
- Robust Financial Health: The company's debt-to-equity ratio stands at just 0.14, with a net profit margin of 16.9%, showcasing its financial stability and strong performance in the capital-intensive mining sector, laying a solid foundation for future growth.
See More
