In the latest close session, Cameco (CCJ) was up +2.09% at $92.80. The stock's performance was ahead of the S&P 500's daily gain of 1.14%. At the same time, the Dow added 0.61%, and the tech-heavy Nasdaq gained 1.69%.
The stock of uranium producer has fallen by 7.23% in the past month, lagging the Oils-Energy sector's gain of 1.41% and the S&P 500's loss of 2.85%.
The investment community will be paying close attention to the earnings performance of Cameco in its upcoming release. In that report, analysts expect Cameco to post earnings of $0.26 per share. This would mark year-over-year growth of 420%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $494.94 million, up 10.91% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.27 per share and revenue of $0 million, which would represent changes of +23.3% and 0%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Cameco. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Cameco is holding a Zacks Rank of #4 (Sell) right now.
In the context of valuation, Cameco is at present trading with a Forward P/E ratio of 71.71. This valuation marks a premium compared to its industry average Forward P/E of 17.92.
It's also important to note that CCJ currently trades at a PEG ratio of 1.56. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Alternative Energy - Other stocks are, on average, holding a PEG ratio of 2.16 based on yesterday's closing prices.
The Alternative Energy - Other industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 100, positioning it in the top 41% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the 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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This article originally published on Zacks Investment Research (zacks.com).