Cameco Stock Falls After Earnings, Why the Dip May Be a Gift
Cameco Corp. (NYSE: CCJ) reported its third-quarter earnings on Nov. 5. The results came in lower on the top and bottom lines, but that’s an oversimplification of what’s happening with CCJ stock, which is down about 10% in the first trading week of November.
A more complete answer is that the stock is correcting after a strong run-up in the lead-up to earnings.
The reason for that surge had nothing to do with the company’s current revenue and earnings, but was all about its future. The future is bright, but CCJ stock got ahead of itself, and that’s why investors should view this pullback as an opportunity.
Confirmation of the Nuclear Revolution
Energy stocks, in general, have performed poorly in 2025. However, nuclear energy stocks have been an exception. The insatiable energy demands generated by artificial intelligence (AI) are driving an all-of-the-above approach to supplying that energy.
That’s putting nuclear energy back into favor. It’s a clean energy solution that has the potential to deliver power at the required scale.
Cameco is best known as one of the leading producers of uranium, which is powering the global nuclear power industry. But it’s the company’s 2023 decision to acquire a 49% stake in Westinghouse Electric that is fueling interest in the stock.
Cameco and Brookfield Asset Management (NYSE: BAM) are partnering with the U.S. government to facilitate the build-out of at least $80 billion of new Westinghouse nuclear reactors. Investors welcomed the announcement as a sign that the company has a future beyond being just a commodity producer, which leaves the stock’s value intrinsically linked to the price of uranium.
A Distinction with a Difference
That future is not today. More importantly, however, it’s important that investors understand what this partnership is about and what it’s not. Cameco used its earnings report as an opportunity to clarify that the U.S. government will not be involved with Cameco’s core mining business.
Chief executive officer (CEO) Tim Gitzel remarked, “The U.S. government partnership interest does not extend to Cameco’s core business, although our uranium products and fuel services are certainly well positioned to support the buildout and long-term operation of the global fleet as it grows.”
Understanding the Earnings Report
Cameco reported $614.56 million in revenue for the quarter. That was 18% lower than analysts’ forecasts for $749.63 million. It was also down 15% on a year-over-year basis. The company also reported earnings per share of five cents, which was 75% lower than the 19 cents per share that was forecasted. However, it represented an improvement from the loss of one cent per share it had recorded the previous year.
The company reminded investors that its quarterly results can vary based on when orders come in. It’s also a reminder that the company’s present value is heavily linked to its mining operations.
How to Approach CCJ Stock
The recent move in Cameco stock has pushed the company’s price-to-sales (P/S) ratio to approximately 11.6x its sales. That’s expensive compared to its historical average. It's also well above the sector average for basic materials stocks.
That makes it possible, even likely, that this pullback in CCJ stock may become a full-blown correction. The stock has just dropped below its 20-day simple moving average (SMA), and the MACD line has just turned negative, indicating that momentum is in favor of the bears.
The next level to watch is at the 50-day SMA, which is around $86.
If the stock drops below that, it could signal a deeper correction, which could push the price down to $80 or even $73, which are levels of support along the 50-day line.
That wouldn’t be something to fear. In fact, it should be something that long-term investors would welcome. Analysts were raising their price targets before the earnings report. The consensus price target of $102.61 is 13% higher than the stock's current price.
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