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Cameco (TSX:CCO) has drawn attention after recent share price gains over the past month and past 3 months, prompting investors to revisit how its uranium, fuel services, and Westinghouse segments support current market expectations.
See our latest analysis for Cameco.
At a share price of CA$163.18, Cameco has seen strong recent momentum, with a 30-day share price return of 31.36% and a 1-year total shareholder return of 120.08%. This points to a market that has been repricing both growth potential and uranium related risks over time.
If this kind of move has you looking beyond Cameco, it could be a good moment to broaden your search with aerospace and defense stocks as another way to find companies tied to long term security and energy themes.
With the share price ahead of the average analyst target and an intrinsic value estimate pointing to a premium, the key question now is whether Cameco is already fully priced or if the market is still betting on much stronger growth.
Compared with Cameco’s last close of CA$163.18, the most followed narrative points to a fair value of US$151.63, framing the recent share price strength as a premium to modelled cash flows.
Cameco stands to benefit from a global wave of new nuclear construction, driven by heightened government policy support, net-zero emission mandates, and growing energy security concerns, which are factors likely to accelerate demand for uranium and nuclear fuel and directly support higher long-term revenues.
Curious what kind of revenue path, margin lift, and future P/E multiple are baked into that valuation? The entire fair value story hangs on those assumptions.
Result: Fair Value of $151.63 (OVERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, those assumptions could be challenged if nuclear project decisions are delayed further or if operational issues at key assets make the margin outlook less reliable.
Find out about the key risks to this Cameco narrative.
If this story does not quite fit your view, or you prefer to test the assumptions yourself, you can build a custom thesis in minutes with Do it your way.
A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding Cameco.
If Cameco has sharpened your interest, do not stop here. Use the Simply Wall Street Screener to quickly surface fresh ideas that fit your own checklist.