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Why Cameco (CCJ) Dipped More Than Broader Market Today

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Cameco (CCJ - Free Report) ended the recent trading session at $53.98, demonstrating a -1.44% swing from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.33%. On the other hand, the Dow registered a loss of 0.22%, and the technology-centric Nasdaq decreased by 0.56%.

The uranium producer's stock has climbed by 12.6% in the past month, exceeding the Basic Materials sector's loss of 4.77% and the S&P 500's gain of 1.83%.

Investors will be eagerly watching for the performance of Cameco in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on November 7, 2024. The company's earnings per share (EPS) are projected to be $0.26, reflecting an 8.33% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $551.15 million, up 28.58% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.83 per share and a revenue of $2.2 billion, signifying shifts of +45.61% and +15.1%, respectively, from the last year.

Investors might also notice recent changes to analyst estimates for Cameco. 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. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 7.78% fall in the Zacks Consensus EPS estimate. Cameco is currently a Zacks Rank #3 (Hold).

Investors should also note Cameco's current valuation metrics, including its Forward P/E ratio of 65.99. This signifies a premium in comparison to the average Forward P/E of 17.36 for its industry.

The Mining - Miscellaneous industry is part of the Basic Materials sector. At present, this industry carries a Zacks Industry Rank of 183, placing it within the bottom 28% of over 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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