1 Stock That Is The Power Behind Nuclear Revival?

Cameco isn’t just a miner. It’s the world’s largest publicly traded uranium producer, but its reach extends far beyond extraction.

The company refines uranium, manufactures reactor fuel rods, and even owns 49% of Westinghouse Electric, one of the few firms that designs and builds nuclear reactors. This level of integration is rare in the commodity world, allowing Cameco to capture value across the entire cycle instead of being just another price-taker.

Key Points

• Cameco’s reach spans mining to reactor construction, thanks to its uranium assets and 49% stake in Westinghouse.

• Rising global power needs and dozens of new reactors set to launch make Cameco a prime beneficiary of the nuclear revival.

• Despite a high valuation, Cameco’s dominance and exposure to scarce uranium resources could justify the premium long term.

Cameco Is Reaching Far Now

Beyond Canada, Cameco has global reach through Inkai, its joint venture in Kazakhstan with state-owned Kazatomprom. Kazakhstan has been the world’s largest uranium producer since 2009, now supplying roughly two fifths of the global total.

Inkai alone is projected to produce over 8 million pounds this year, with Cameco’s share at 3.7 million. The partnership offers both geographic diversification and strategic leverage over the world’s key uranium hub.

A lesser-known detail is that Cameco also holds dormant U.S. assets in Nebraska and Wyoming. If the U.S. follows through on policies to boost domestic uranium production, those sites could be brought back online quickly, giving Cameco an instant foothold in a market that’s increasingly prioritizing energy security.

Demand Tailwinds and Financial Strength

Cameco’s latest results show how sharply demand for uranium is climbing. In Q2, net earnings jumped 46% year-over-year to $321 million, while profits from its fuel-services business climbed 36%.

The Westinghouse stake, once viewed as a costly diversification, has started contributing meaningfully, delivering $126 million in earnings in the latest quarter after posting a loss a year earlier. Net margins now stand around 15%.

The broader backdrop looks even more promising. The International Energy Agency expects global electricity demand to rise 62% by 2040 and nearly double by 2050. As countries attempt to decarbonize, nuclear power is emerging as one of the few reliable, low-carbon baseload sources available.

Roughly 60 new reactors are scheduled to come online by 2030, and total global nuclear capacity could triple by mid-century. With exposure across mining, processing, and reactor technology, Cameco is arguably one of the purest plays on that long-term theme.

Some analysts project that Cameco’s earnings per share could compound at about 70% annually over the next three to five years, an ambitious forecast, but not entirely implausible given the widening gap between uranium supply and reactor demand. Even if growth falls short of that figure, the underlying trends still support meaningful long-term expansion.

Valuation and Investor Perspective

At more than 120 times trailing earnings and 18 times sales, Cameco’s valuation is steep for a resource stock. Yet analysts largely justify the premium, arguing that the company’s integrated model and uranium scarcity warrant higher multiples. Consensus price targets cluster around $93 per share, a bit below recent levels, but the range still reflects optimism that Cameco can grow into its valuation over time.

Investors should be aware, though, that uranium remains a cyclical commodity. Supply disruptions in Kazakhstan, fluctuating spot prices, or delays in new-reactor projects could all cause volatility. Cameco mitigates this risk by running its mines at partial capacity, a deliberate choice to preserve high-grade reserves and maintain pricing power in long-term contracts with utilities.

Is Cameco Still Worth a Premium?

Cameco isn’t a speculative bet like some nuclear startups chasing AI-driven hype. It’s a profitable, globally diversified business that has spent decades building the infrastructure to power the nuclear renaissance now taking shape. While its valuation leaves little room for error, the long-term setup, rising electricity demand, tightening uranium supply, and renewed political support for nuclear energy, is compelling.

For investors willing to ride out short-term swings, Cameco could still be worth the premium. It’s not the kind of stock you buy for next quarter’s gain, it’s the kind you hold for the next decade as the world rediscovers nuclear power’s importance.