Cameco (CCJ) Outpaces Stock Market Gains: What You Should Know

In the latest trading session, Cameco (CCJ) closed at $28.30, marking a +1.25% move from the previous day. This move outpaced the S&P 500's daily gain of 0.69%. Elsewhere, the Dow gained 0.64%, while the tech-heavy Nasdaq lost 0.2%.

Heading into today, shares of the uranium producer had gained 24% over the past month, outpacing the Basic Materials sector's loss of 8.82% and the S&P 500's loss of 9.94% in that time.

Cameco will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of -$0.02, up 81.82% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.21 per share and revenue of $1.47 billion, which would represent changes of +205% and +24.57%, respectively, from the prior year.

Any recent changes to analyst estimates for Cameco should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Cameco is currently a Zacks Rank #3 (Hold).

Investors should also note Cameco's current valuation metrics, including its Forward P/E ratio of 136.34. Its industry sports an average Forward P/E of 8.07, so we one might conclude that Cameco is trading at a premium comparatively.

The Mining - Miscellaneous industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 172, putting it in the bottom 32% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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