Shares of Cameco Corporation CCJ are currently trading at a forward price-to-sales multiple of 16.52X, well above the industry’s 5.27X. Its Value Score of F also suggests an expensive valuation.
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That said, Cameco is cheaper than uranium peers like Energy Fuels UUUU, which is currently trading at a forward price-to-sales ratio of 18.68X and Uranium Energy UEC, which is trading at a loftier 60.88X.
Cameco Stock Trails Industry Performance
Cameco shares have declined 7.1% over the past six months, underperforming the industry’s 15.5% growth. The Zacks Basic Materials sector gained 3.8% while the S&P 500 rose 8%. Over this period, Energy Fuels and Uranium Energy have declined 27.1% and 25.3%, respectively.
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Despite lagging the broader industry, Cameco continues to command a premium valuation. A closer look at its recent financial performance, growth catalysts, operational execution and key risks helps determine whether that premium remains warranted.
CCJ’s Uranium Business Powers Strong First-Quarter Results
Cameco reported first-quarter revenues of CAD 845 million ($616 million), up 7% year over year, as robust uranium results offset softer fuel services performance. Uranium revenues increased 15% to CAD712 million ($520 million), supported by higher realized prices and volumes. Fuel Services revenues dipped 1% to CAD 134 million ($98 million), as higher delivery volumes were offset by lower average selling prices.
Adjusted earnings surged 194% year over year to CAD 0.47 (34 cents) per share in the quarter, benefiting from higher revenues and stronger equity earnings from its 49% interest in Westinghouse Electric Company.
Cameco Expands Ownership of Cigar Lake
Cameco has closed the previously announced acquisition of TEPCO’s 5% interest in Cigar Lake for $115.75 million. CCJ’s ownership in Cigar Lake currently stands at 57.418%. This strengthens the company’s exposure to one of the world's highest-grade and longest-life uranium assets.
Operational Challenges Pose a Risk to Cameco’s 2026 Outlook
For 2026, Cameco expects uranium production of 19.5-21.5 million pounds, including 9.5-10 million pounds from Cigar Lake and 10.0-11.5 million pounds from McArthur River. We expect Cigar Lake guidance to be updated following the ownership increase.
The company, however, recently suspended mining at Cigar Lake after operational issues at the sulfuric acid plant at the McClean Lake mill, where Cigar Lake ore is processed. Efforts are underway to bring the plant back online and to obtain acid supply from an alternative source.
Management expects the McClean Lake mill to restart in roughly two weeks and currently does not anticipate any impact on its 2026 production guidance. Nevertheless, a prolonged repair timeline or additional delays could affect output.
Cameco to Benefit From DOE-Backed Nuclear Expansion
In 2023, Cameco acquired a 49% stake in Westinghouse through a strategic partnership with Brookfield Asset Management and its listed affiliate Brookfield Renewable Partners. Westinghouse Electric Company is a nuclear reactor technology original equipment manufacturer (OEM) and a leading provider of highly technical aftermarket products and services to commercial nuclear power utilities and government agencies globally.
Cameco could receive an indirect boost from the U.S. Department of Energy's Office of Energy Dominance Financing, which recently announced a conditional commitment of up to $17.5 billion in financing for U.S. nuclear reactor projects. The financing remains subject to several technical, legal, environmental and financial requirements. Westinghouse, along with its owners and project partners, must satisfy these conditions before the DOE can finalize financing agreements and disburse the loan proceeds.
CCJ’s Earnings Outlook Remains Favorable Despite Mixed Estimate Revisions
The Zacks Consensus Estimate for Cameco’s earnings for fiscal 2026 indicates year-over-year growth of 17.5%. The same for 2027 implies growth of 58.7%.
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While the consensus estimate for 2026 earnings has moved up over the past 60 days, the same for 2027 has moved down, as shown in the chart below.
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Cameco's Long-Term Growth Story Remains Intact
Cameco's long-term fundamentals remain attractive. As of March 31, 2026, the company had contracts in place requiring average annual uranium deliveries of more than 28 million pounds over the next five years. These agreements provide strong revenue visibility, stable cash flows and support future investment plans.
As market conditions continue to improve, the company intends to add additional contracted volumes while capturing greater upside through market-linked pricing mechanisms. In Fuel Services, strong demand and elevated UF6 conversion prices have helped secure additional long-term contracts, with total contracted volumes reaching roughly 83 million kgU of UF6.
Cameco’s uranium production capacity accounts for nearly 15% of global output and it is further investing to expand production to capture favorable market conditions. This includes extending Cigar Lake’s mine life to 2036 and ramping up output at McArthur River and Key Lake toward their licensed annual capacity of 25 million pounds (100% basis).
Should You Buy CCJ Stock Now?
Cameco remains one of the strongest long-term uranium investment stories, backed by low-cost, high-grade assets, a diversified nuclear fuel portfolio and growing exposure to reactor technology through Westinghouse. Supported by a strong balance sheet, the company is making investments (the most recent being its deal to increase its stake in Cigar Lake) to boost its capacity to capitalize on the expected surge in uranium demand.
However, new investors can wait for a better entry point, considering the premium valuation and mixed earnings estimate revisions. The stock currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).