Cameco Stock Surges 80% Driven by Nuclear Energy Demand
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 07 2026
0mins
Source: Fool
- Nuclear Market Opportunity: Cameco's stock has surged nearly 80% over the past year, reflecting strong investor confidence in the expansion of nuclear infrastructure, with multiple countries expected to triple their nuclear capacity by 2050, providing long-term growth momentum for the company.
- Earnings Forecast Analysis: Analysts estimate Cameco's earnings per share will reach $1.52 in 2026, and despite a high valuation of nearly 65 times earnings, strong growth expectations make it a popular choice for growth investors, although the high valuation also increases downside risk.
- ExxonMobil's Natural Gas Potential: ExxonMobil has significant opportunities in the natural gas sector, aiming to double its global LNG supply portfolio by 2030, leveraging its strategic assets in Guyana to drive power generation and LNG development, enhancing its market competitiveness.
- Value Investment Comparison: In contrast to Cameco's high valuation, ExxonMobil trades at a price-to-earnings ratio of 17, with projected earnings growth of 21% in 2027 and nearly 12% in 2028, making it an ideal choice for value-focused investors seeking more attractive pricing.
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Analyst Views on CCJ
Wall Street analysts forecast CCJ stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for CCJ is 105.67 USD with a low forecast of 71.80 USD and a high forecast of 118.78 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
11 Buy
1 Hold
0 Sell
Strong Buy
Current: 113.630
Low
71.80
Averages
105.67
High
118.78
Current: 113.630
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.
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- Cameco's Growth Potential: As the world's second-largest uranium miner, Cameco's uranium price has surged from $18 per pound in 2016 to $94, with expectations to reach $100, prompting the company to restart idled mines to meet demand; analysts forecast revenue and EPS growth of 9% and 91%, respectively, from 2024 to 2027.
- NuScale's Innovation: NuScale's small modular reactors (SMRs) are designed for deployment in areas unsuitable for conventional reactors; while still in the front-end engineering phase, a contract with the Tennessee Valley Authority will facilitate expansion before 2032.
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- Sector Structure Differences: Unlike the U.S. market where tech stocks account for one-third, Canadian tech stocks make up only 10%, allowing the market to remain insulated from tech bubble concerns and maintain stable growth potential.
- Interest Rate Environment Impact: With Canadian interest rates at 2.3%, significantly lower than the U.S. range of 3.5%-3.75%, Canadian financial firms benefit from a more favorable financing environment, boosting stock prices, particularly in infrastructure and defense sectors.
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- Uranium Price Recovery: The spot price of uranium has rebounded from $18 per pound in 2016 to $94, driven by surging demand from the cloud and AI sectors, prompting countries to restart nuclear projects and enhancing Cameco's market outlook.
- Revenue Growth: Cameco is projected to achieve a 29% CAGR in revenue from 2021 to 2024, with analysts forecasting revenue and EPS growth rates of 9% and 91%, respectively, from 2024 to 2027, indicating a significant enhancement in the company's profitability.
- Dividend Potential: Although Cameco's current dividend yield is only 0.15%, its 13% payout ratio provides ample room for future increases, and analysts expect uranium prices to continue rising, which will generate additional cash flow to support dividend hikes.
See More
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Nuclear Energy's Rising Importance: Companies like Oracle and Meta are investing heavily in nuclear energy, recognizing it as a crucial, scalable solution to meet the energy demands of AI technologies, moving beyond traditional energy sources.
Investment Trends and Market Dynamics: Oracle's plan to raise $50 billion for nuclear reactor construction highlights a significant capital shift in the tech sector, indicating that nuclear energy is becoming foundational to the technology stack rather than just a commodity.
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