http://finance.yahoo.com/news/bear-day-cameco-ccj-045512946.html
Although there has been some strength in the mining sector lately, the overall trend for the space hasn’t been good. The industry has been hampered by low levels of demand, concerns about emerging markets, and a strong dollar which has pushed many investors out of commodities.
While this bearish outlook has manifested itself in silver and gold miners, a number of other segments have also been hit by this trend. In particular, the miscellaneous segment—which includes firms that mine for items like uranium, rare earths, and palladium/platinum—could also face weakness ahead, such as in the case of Cameco (CCJ).
Cameco in Focus
The Canadian-based firm is a relatively well-known name in the uranium mining space, operating several properties in the Saskatchewan province of Canada. The company also has a few locations in the U.S. Midwest, in addition to a Kazakhstani property as well.
Beyond their mining segment, the company is also engaged in a bit of nuclear energy production. This is represented by a minority stake the company has in Bruce Power L.P. which produces power in a few Ontario reactors.
Cameco Outlook
Thanks to its relatively diverse operations and the company’s focus on a key product like uranium, CCJ hasn’t seen that bad of a 2013 so far. In fact, the company is positive from a year-to-date look, adding about 5% in the time frame, though it has experienced extreme volatility too.
While this definitely represents a bit of outperformance when compared to others in the space, investors should be concerned that this will not last in the months ahead. This is particularly true when investors consider the estimate revision picture, and projected growth rates for this company.
Earnings Estimates
While CCJ analysts are expecting solid growth for both the current quarter and next quarter periods, this isn’t expected to translate to the full year time frame. For this time period, analysts are looking for an earnings contraction of about 15% year-over-year, well below the struggling industry and its average.
Furthermore, investors should note that the consensus has fallen like a stone for the full year time frame, with estimates going from $1.23/share 90 days ago to their current level just below $1.00/share. Plus, it isn’t like CCJ has a great track record when it comes to earnings dates, as the over the last four quarters the company has seen an average surprise of -23.17%.
Thanks to these factors, CCJ has earned itself a Zacks Rank #5 (Strong Sell), suggesting that it is due to fall back to Earth and underperform peers in the months ahead. And the stock also has an underperform Zacks Recommendation which means that the longer-term outlook isn’t any better for this firm.
Better Picks
If investors really want to stay in the miscellaneous segment of the mining industry, there are only a handful of choices. The space currently has one of the lowest Zacks Industry Ranks, so top Ranked stocks are few and far between.
Still, there are a handful of #1 Ranked stocks that could be worth investing in, including Avalon Rare Metals (AVL), Impala Platinum (IMPUY), and Stillwater Mining (SWC). All of these have seen their Ranks surge to the top echelon in the past week too, and thus they may be better picks than CCJ for the months ahead.
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Recent CCJ News
- Cameco nommée au TSX30 pour 2024 • Business Wire • 09/10/2024 10:14:00 PM
- Cameco Named to TSX30 for 2024 • Business Wire • 09/10/2024 01:00:00 PM
- Form S-8 - Securities to be offered to employees in employee benefit plans • Edgar (US Regulatory) • 08/08/2024 09:12:23 PM
- Cameco présente ses résultats pour le deuxième trimestre : les prévisions pour 2024 sont maintenues ; solide performance d'exploitation ; les résultats financiers sont le reflet d'une transition vers des indicateurs économiques de premier plan... • Business Wire • 08/01/2024 11:30:00 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 07/31/2024 11:28:57 AM
- Cameco reports Q2 results: 2024 outlook on track; strong operational performance; financial results reflect transition to tier-one economics; durable demand outlook driving long-term price increases; disciplined strategy capturing long-term value • Business Wire • 07/31/2024 10:41:00 AM
- US Index Futures Up Ahead of Fed Decision; Oil Prices Surge Amid Middle East Tensions • IH Market News • 07/31/2024 10:01:30 AM
- Is This Company the Next Big Find for Fans of Highflyer Ramp Metals? • AllPennyStocks.com • 07/23/2024 09:10:00 PM
- Cameco publie son rapport sur le développement durable 2023 • Business Wire • 06/27/2024 10:44:00 PM
- Cameco Releases 2023 Sustainability Report • Business Wire • 06/27/2024 04:53:00 PM
- SaskPower, Westinghouse et Cameco signent un protocole d'entente pour explorer le potentiel d'approvisionnement en réacteurs et en combustible • Business Wire • 06/18/2024 12:07:00 AM
- SaskPower, Westinghouse and Cameco Sign MOU to Explore Reactor and Fuel Supply Potential • Business Wire • 06/17/2024 07:14:00 PM
- SaskPower, Westinghouse and Cameco Sign MOU to Explore Reactor and Fuel Supply Potential • Business Wire • 06/17/2024 06:05:00 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 06/06/2024 10:25:58 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 05/31/2024 10:21:18 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 05/30/2024 10:32:38 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 05/28/2024 03:33:51 PM
- Cameco finalise un placement de débentures de 500 millions de dollars • Business Wire • 05/24/2024 06:04:00 PM
- Cameco annonce un placement privé de 500 millions de dollars de débentures • Business Wire • 05/21/2024 11:22:00 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 05/17/2024 09:50:00 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 05/10/2024 03:16:46 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 05/10/2024 02:40:57 PM
- Cameco annonce l'élection des administrateurs • Business Wire • 05/10/2024 06:24:00 AM
- Cameco Announces Election of Directors • Business Wire • 05/09/2024 10:05:00 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 05/08/2024 12:17:51 AM
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