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Cameco (CCJ) Stock Slides as Market Rises: Facts to Know Before You Trade

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Cameco (CCJ - Free Report) closed at $54.77 in the latest trading session, marking a -0.73% move from the prior day. This change lagged the S&P 500's daily gain of 0.16%. Meanwhile, the Dow lost 0.37%, and the Nasdaq, a tech-heavy index, added 0.78%.

Prior to today's trading, shares of the uranium producer had gained 15.52% over the past month. This has outpaced the Basic Materials sector's loss of 5.21% and the S&P 500's gain of 1.67% in that time.

The investment community will be closely monitoring the performance of Cameco in its forthcoming earnings report. The company is scheduled to release its earnings on November 7, 2024. It is anticipated that the company will report an EPS of $0.26, marking an 8.33% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $551.15 million, indicating a 28.58% growth compared to the corresponding quarter of the prior year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.83 per share and a revenue of $2.2 billion, indicating changes of +45.61% and +15.1%, respectively, from the former year.

It is also important to note the recent changes to analyst estimates for Cameco. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 7.78% decrease. Cameco presently features a Zacks Rank of #3 (Hold).

In terms of valuation, Cameco is presently being traded at a Forward P/E ratio of 66.47. This signifies a premium in comparison to the average Forward P/E of 17.55 for its industry.

The Mining - Miscellaneous industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 177, putting it in the bottom 30% 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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