Cameco (CCJ) ended the recent trading session at $73.45, demonstrating a +2.5% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.83%. At the same time, the Dow added 0.77%, and the tech-heavy Nasdaq gained 1.02%.
The stock of uranium producer has risen by 19.53% in the past month, leading the Basic Materials sector's gain of 5.33% and the S&P 500's gain of 4.99%.
The investment community will be paying close attention to the earnings performance of Cameco in its upcoming release. The company is predicted to post an EPS of $0.36, indicating a 260% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $681.82 million, indicating a 56% increase compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.09 per share and a revenue of $2.51 billion, indicating changes of +122.45% and +10.16%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for Cameco. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 15.13% higher. Cameco is currently a Zacks Rank #3 (Hold).
With respect to valuation, Cameco is currently being traded at a Forward P/E ratio of 65.92. For comparison, its industry has an average Forward P/E of 17.79, which means Cameco is trading at a premium to the group.
The Mining - Miscellaneous industry is part of the Basic Materials sector. This industry, currently bearing a Zacks Industry Rank of 158, finds itself in the bottom 37% echelons 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Cameco Corporation (CCJ): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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