Cameco Stock Down to Below $90 -- Is Now the Time to Buy?
Cameco's pullback offers a cheaper way to bet on nuclear growth.
Overview
Cameco (NYSE: CCJ) stock has fallen below $90, closing at $85.69 on Oct. 1. That's a significant retreat for a stock that has traded as high as $135.24 over the past year. But the underlying nuclear story hasn't changed nearly as much as Cameco's stock price, which makes it worth a closer look at these levels.
One thing you have to understand about Cameco is that it isn't simply a bet on uranium prices. Yes, it is one of the world's largest uranium producers, but it also operates nuclear fuel service businesses and owns 49% of Westinghouse, giving it exposure to everything from uranium mining to nuclear reactor servicing. That said, tight uranium supplies continue to give the company a strategic advantage.
Details
Uranium-market consultancy UxC estimates that utilities have approximately 3.1 billion pounds of uncovered uranium requirements through 2045. Over the past five years, roughly 815 million pounds of uranium equivalent were consumed by reactors, while only about 589 million pounds were placed under long-term contracts. That gap could create plenty of opportunities for an established producer like Cameco.
Source
Originally published at www.fool.com.