Cameco Corp. And The Nuclear Fuel Cycle (NYSE: CCJ)
This week’s edition of ThePeachPit takes a turn back into the uranium space, specifically in one of the world’s largest uranium mining and services companies, Cameco Corporation (NYSE: CCJ). Through a recent acquisition, Cameco will be as close as a company can get to managing the entire uranium fuel cycle.
Through various geopolitical events, including the possibility of cutting off Russia from the global market for uranium and uranium enrichment, there may be significant upside potential that has yet to be realized. With the major run-up in uranium spot prices as well as uranium stocks in the last year, I believe that this is just scratching the surface.
Like every stock, nothing runs straight up. With this large pullback in price, whether the trend continues in the near-term or reverses course, we remain in the early innings of one of the largest megatrends, next to AI. Before we hop into my analysis covering Cameco, let’s review my recent stock reports as well as some headlines that caught my attention.
As a result of Nvidia’s recent earnings beat, I maintain my initial recommendation as well as my recommendation for SMCI, which can be found below. Cybersecurity took a major beating, as anticipated with PANW retreating by -26% since publication. This goes in line with my initial thesis as the firm faces challenges in signing long-duration contracts due to financing costs. What derailed my thesis was the pullback in revenue guidance as a result of this. Depending on how the next quarter goes, cybersecurity may be back on the table for an investment. Despite the near-term challenges, the threats remain heightened and will only become a greater challenge as more companies adopt GenAI. I’ll keep these cybersecurity firms on the radar over the next few quarters and sniff out a buying opportunity.
Seeking Alpha Reports
Super Micro Computer (NASDAQ: SMCI)
Check Point Software (NASDAQ: CHKP)
Palo Alto Networks (NASDAQ: PANW)
Notable News Articles
Maduro Vows To Bar ExxonMobil From Guyanese Region Claimed By Venezuela | Barron's (barrons.com)
The Boom in Battery Metals for EVs Is Turning to Bust - WSJ
Billions Start Flowing to Chip Makers for New U.S. Factories - WSJ
The Boom in Battery Metals for EVs Is Turning to Bust - WSJ
Maduro Vows To Bar ExxonMobil From Guyanese Region Claimed By Venezuela | Barron's (barrons.com)
Cameco Corporation (NYSE: CCJ)
This week we’re looking at Cameco Corporation (NYSE: CCJ), a Canada-based uranium mining and processing company with core operations across the US and Canada. Sales span across 15 countries with primary concentrations across the Americas. In a recent acquisition in tandem with Brookfield, Cameco acquired a 49% equity interest in Westinghouse, with Brookfield owning the remainder, a deal that will bolster Cameco’s nuclear fuel services business tremendously.
In today's environment, the uranium market is certainly having more than just a moment. Instead, we're seeing full-cycle growth in the near-, mid-, and long-term with broad interest in nuclear energy like never before. And it's being driven by global scale factors that are widely expected to persist for years to come.
Tim Gitzel, President & CEO of Cameco Corp.
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