Uranium stocks are surging today due to Constellation Energy's announcement. The company plans to restart Unit 1 at the Three Mile Island nuclear power plant by 2028 to supply power to Microsoft data centers.
This news has positively impacted shares of uranium mining stocks. Energy Fuels, Uranium Energy, and Denison Mines have all seen increases. However, Cameco Corporation (CCJ, Financial) leads the pack with a 7.5% gain.
Constellation Energy's decision to restart a nuclear plant means increased demand for uranium, benefiting uranium miners and driving up their stock prices.
This could signal a broader trend. The U.S. Energy Information Administration notes 54 nuclear power plants with 94 reactors currently operate in the U.S. Additionally, 22 reactors are in varying stages of decommissioning and could potentially be reactivated. While only one new reactor is under construction, several small nuclear power startups are seeking approval for new designs.
Analyzing Cameco Corporation (CCJ, Financial), the stock is currently priced at $44.16. The stock has several positive signs, including a strong Altman Z-score of 5.61, indicating financial strength. Additionally, the Beneish M-Score of -2.51 suggests the company is unlikely to be a manipulator. Cameco also boasts a PE ratio of 103.18 and a PB ratio of 4.21, which is close to its 1-year low.
Cameco's dividend yield is close to a 1-year high, reflecting strong dividend performance. The stock shows insider buying activity, with one insider buying 500 shares over the past three months.
However, there are some warning signs. The company's return on invested capital (ROIC) is less than its weighted average cost of capital (WACC), indicating potential inefficiencies. Cameco's gross margin has been in a long-term decline, averaging a rate of -5% per year.
In terms of valuation, the stock's GF Value is $38.88, which suggests the stock is modestly overvalued. For more details, visit the GF Value page for Cameco Corporation.
