Cameco Stock: A Buy Now?
Cameco, a Canadian company and one of the world’s largest uranium miners, has seen its stock fall from an all-time high to around $87 per share. The decline follows a pullback in uranium prices after hitting nearly $90 per pound earlier this year. Cameco's long-term contracts limit exposure to price volatility but also reduce upside potential compared to spot-market competitors. The company has diversified its operations by increasing its stake in Global Laser Enrichment and acquiring part of Westinghouse Electric, a nuclear technology leader. However, these moves have increased short-term costs and impacted earnings growth. Despite the current valuation being lower than peak levels, Cameco still trades at 76 times this year's earnings. Analysts expect strong EPS growth from 2025 to 2028 (41% CAGR), which makes its stock appear reasonably valued by future sales metrics but remains expensive in the near term. Uranium prices are expected to rise only slightly through 2033, suggesting a more stable than explosive market ahead.
Topics: Cameco performance nuclear energy market uranium mining