[The Motley Fool] Cameco Corporation (NYSE:CCJ)(TREND ANALYSIS) Buying beaten-up commodity stocks hasn’t been a very rewarding play recently, but some of the best names in their respective sectors are getting to the point where contrarian types are starting to kick the tires.
Cameco Corporation (TSX:CCO)(NYSE:CCJ) and Silver Wheaton Corp. (TSX:SLW)(NYSE:SLW) are two names that get a lot of attention and are trading near their 52-week lows. Let’s take a look at both companies to see if one deserves to be in your portfolio.
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Cameco Corporation (NYSE:CCJ) stock is currently trading 32.72% below its 52-week-high, 7.05% above its 52-week-low. The 1-year stock price history is in the range of $13.62 – $21.67. Cameco Corporation (CCJ) has a price to earnings ratio of 156.77 versus Basic Materials sector average of 38.56. CCJ stock price has underperformed the S&P 500 by 12.8%. The Industrial Metals & Minerals company is currently valued at $5.77 billion and its share price closed the last trading session at $14.58. The stock has a 50-day moving average of $15.6 and a 200-day moving average of $15.46.
Cameco Corporation (CCJ) current short interest stands at 3.9 million shares. It has decreased by 10% from the same period of last month. Around 2% of the company’s shares, which are float, are short sold. With a 10-days average volume of 1 million shares, the number of days required to cover the short positions stand at 4 days.
The company is expected to announce next quarter earnings on July 30, at consensus estimate of $0.21. Cameco Corporation (CCJ) reported last quarter earnings on April 29. The Industrial Metals & Minerals company announced earnings per share of $0.15 against a consensus Street estimate of $0.14, beating the average estimate by $0.01. This corresponds to an increase of $0.06 compared to the same quarter of the previous fiscal year.
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There are currently nineteen analysts that cover Cameco Corporation stock. Of those nineteen, fifteen have a Buy rating, four have a Hold rating. On a consensus basis this yields to a Buy rating. The consensus target price stands at $19.9.
A recent analyst activity consisted of Goldman Sachs who initiated their coverage on the stock with Buy rating on June 26. Goldman Sachs fixed their price target at $18. This corresponds to a 23.46% upside from the last closing price. On the date of report, the stock closed at $14.58.
Raymond James upgraded their Market Perform rating to Outperform on April 30. On the date of report, the stock closed at $17.48.
Another research firm was Bank of America who upgraded their Neutral rating to Buy on April 13. Bank of America increased their price target on Cameco Corporation from $20 to $23. This translates to a 57.75% upside from the last closing price. On the date of report, the stock closed at $15.43.
Company profile
Cameco Corporation operates as a uranium producer, supplier of conversion services, and fuel manufacturer. The company’s Uranium segment is involved in the exploration for, mining, milling, purchase, and sale of uranium concentrate. Its operating uranium properties include the McArthur River and Key Lake, and Rabbit Lake located in Saskatchewan, Canada; the Crow Butte located in Nebraska and the Smith Ranch-Highland located in Wyoming; and the Inkai uranium deposit located in Kazakhstan. Cameco Corporation’s Fuel Services segment engages in the refining, conversion, and fabrication of uranium concentrate; and the purchase and sale of conversion services. Its products include uranium trioxide, uranium hexafluoride, and uranium dioxide. This segment also manufactures fuel bundles, reactor components, and monitoring equipment to Candu reactors; and provides nuclear fuel and consulting services to Candu operators. The company’s Electricity segment engages in the generation and sale of nuclear electricity, through its 31.6% interest in Bruce Power L.P. This segment operates four nuclear reactors at the Bruce B generating station in southern Ontario, Canada. The company was founded in 1987 and is headquartered in Saskatoon, Canada.
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