The resurgence of interest in nuclear energy has propelled Cameco (NYSE: CCJ) to significant stock gains, with a 63% increase this year and a whopping 251% growth over the past three years. As the world shifts back towards nuclear power, Cameco, a leading uranium company, is poised to reap the benefits.
The U.S. government is actively investing in nuclear infrastructure to meet the country’s escalating energy demands. This initiative includes partnering with companies like Cameco to build new reactors. With the increasing number of data centers driving energy needs, the demand for nuclear energy is on the rise.
Cameco, one of the largest uranium producers globally, holds key assets in high-grade uranium mines in Canada and Kazakhstan. The company’s strategic partnerships, such as its 49% stake in Westinghouse through Brookfield Renewable Partners, provide additional avenues for growth in the nuclear energy sector.
Recent developments, such as President Trump’s executive orders to accelerate nuclear power deployment, have further bolstered Cameco’s prospects. The partnership with the U.S. government aims to build at least $80 billion worth of new reactors across the country using Westinghouse nuclear reactor technology.
Despite a reduction in its 2025 production forecast due to development delays, Cameco remains well-positioned in the nuclear energy market. Strong performance at the Cigar Lake mine is expected to offset part of the shortfall in production.
While Cameco’s current valuation may seem high, analysts project substantial earnings growth in the coming years. The company’s EPS is expected to reach $2.25 by 2028, representing a 30% annual growth rate from 2025’s projected EPS.
Investors may view the recent stock dip as a buying opportunity given Cameco’s bright future in the nuclear energy sector. As the U.S. continues to invest in nuclear infrastructure, more opportunities are likely to arise for companies like Cameco.
In conclusion, Cameco’s strategic position in the uranium market and its partnerships in the nuclear energy sector make it a compelling investment option. While the stock may seem expensive, the long-term growth potential and opportunities in the nuclear industry suggest a promising outlook for Cameco.
