In the latest trading session, Cameco (CCJ) closed at $90.20, marking a -6.03% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.79% for the day. Elsewhere, the Dow saw a downswing of 0.26%, while the tech-heavy Nasdaq depreciated by 1.55%.
Prior to today's trading, shares of the uranium producer had lost 4.92% lagged the Oils-Energy sector's loss of 3.33% and the S&P 500's gain of 4.28%.
Investors will be eagerly watching for the performance of Cameco in its upcoming earnings disclosure. On that day, Cameco is projected to report earnings of $0.31 per share, which would represent a year-over-year decline of 39.22%. In the meantime, our current consensus estimate forecasts the revenue to be $534.36 million, indicating a 15.69% decline compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $1.2 per share and a revenue of $2.39 billion, demonstrating changes of +16.5% and -4.07%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for Cameco. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. The Zacks Consensus EPS estimate has moved 0.96% lower within the past month. As of now, Cameco holds a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Cameco has a Forward P/E ratio of 80.1 right now. Its industry sports an average Forward P/E of 17.3, so one might conclude that Cameco is trading at a premium comparatively.
Meanwhile, CCJ's PEG ratio is currently 1.69. 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 2.02.
The Alternative Energy - Other industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 104, putting it in the top 43% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).