Cameco (CCJ) closed at $85.69 in the latest trading session, marking a -1.13% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.2%. On the other hand, the Dow registered a gain of 0.04%, and the technology-centric Nasdaq increased by 0.04%.
Heading into today, shares of the uranium producer had lost 10.08% over the past month, lagging the Oils-Energy sector's loss of 2.32% and the S&P 500's loss of 0.35%.
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 $0.26, indicating a 420% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $494.94 million, indicating a 10.91% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.15 per share and a revenue of $2.44 billion, signifying shifts of +11.65% and -2.09%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Cameco. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 3.89% lower. Cameco presently features a Zacks Rank of #4 (Sell).
In the context of valuation, Cameco is at present trading with a Forward P/E ratio of 75.26. Its industry sports an average Forward P/E of 16.98, so one might conclude that Cameco is trading at a premium comparatively.
It is also worth noting that CCJ currently has a PEG ratio of 1.64. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Alternative Energy - Other industry was having an average PEG ratio of 2.19.
The Alternative Energy - Other industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 111, this industry ranks in the top 46% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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