Cameco (CCJ) closed the latest trading day at $51.38, indicating a -0.39% change from the previous session’s end. The stock fell short of the S&P 500, which registered a gain of 0.16% for the day. At the same time, the Dow added 0.25%, and the tech-heavy Nasdaq lost 0.06%.
The uranium producer’s shares have seen a decrease of 8.58% over the last month, surpassing the Basic Materials sector’s loss of 10.34% and falling behind the S&P 500’s loss of 2.8%.
The investment community will be paying close attention to the earnings performance of Cameco in its upcoming release. The company is expected to report EPS of $0.17, up 13.33% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $735.56 million, indicating a 18.64% increase compared to the same quarter of the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Cameco. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 3.75% lower within the past month. Cameco is holding a Zacks Rank of #3 (Hold) right now.
Looking at valuation, Cameco is presently trading at a Forward P/E ratio of 40.23. This expresses a premium compared to the average Forward P/E of 12.51 of its industry.
The Mining – Miscellaneous industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 145, which puts it in the bottom 43% of all 250+ industries.
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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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This article was originally published here.
