Normally, posting earnings is big news for a stock. For Canadian mining stock Cameco (CCO), it wasn’t quite the case. In fact, Cameco’s earnings report only prompted a fractional loss in Wednesday morning’s trading, as the development apparently didn’t mean all that much to shareholders one way or the next.
Cameco revealed that it brought in $36 million in net earnings, with earnings per share working out to around $0.08. That’s up in a big way from the second quarter of 2023, in which it brought in just $0.03 per share. That $36 million is also a hefty percentage increase; the second quarter of 2023 saw Cameco bring in just $14 million. Revenue, meanwhile, came in at $598 million, surging ahead of the $482 million in 2023’s second quarter.
Cameco notes that the biggest reason for this surge is uranium. With more and more areas turning to nuclear power to get past coal and make energy sufficient to power cities—wind and solar often just don’t cut it alone—there’s a rising demand for uranium, and those who can pull it out of the ground accordingly.
Uranium Prices Are Rising
Meanwhile, just two days ago, word emerged from Reuters about the concept of uranium contract prices. Turns out, they’re on a steep rise thanks to two key factors. One, there’s the issue of power generation, like we just talked about. But there are two previously unaccounted-for sectors that are driving that demand, and one of these is artificial intelligence. AI runs on electricity, which means more power is required just to get it up and running. And that in turn means more uranium.
This combination of factors is driving prices to 16-year highs and putting Cameco in what should be a good position overall.
Is It a Good Time to Buy Cameco Stock?
Turning to Wall Street, analysts have a Strong Buy consensus rating on Cameco stock based on six Buys assigned in the past three months, as indicated by the graphic below. After a 33.7% rally in its share price over the past year, the average Cameco price target of C$80.77 per share implies 32.02% upside potential.
See more Cameco analyst ratings
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