While the S&P 500 is off to a bullish start in November, shares of Cameco (CCJ 0.39%) have charged considerably higher. According to data from S&P Global Market Intelligence, shares of the uranium mining company have risen 11.7% as of 2:35 p.m. ET on Friday since the end of last week's trading session.
In addition to the company reporting strong third-quarter 2023 financial results, investors responded to management's more auspicious outlook for the remainder of 2023.
It was all treat and no trick when Cameco reported Q3 financial results
Cameo presented its Q3 2023 financial report on Wednesday, and investors were anything but scared off from what Cameco had to say. Reporting revenue of $575 million in Q3 2023, Cameco grew the top line 48% compared to the same period last year.
And the market found good news extended to the bottom of the income statement as well. Cameco reported adjusted earnings per share of $0.32 in Q3 2023 -- a sharp improvement from the $0.03 adjusted EPS that the company reported in Q3 2022.
In addition to the look back, investors found encouragement from management's upwardly revised outlook for the remainder of 2023. Thanks to higher uranium prices, management now projects 2023 revenue of $2.43 billion to $2.58 billion. Previously, management had expected to book sales of $2.38 billion to $2.53 billion.
Look for shares to power down before buying
Although the company's strong Q3 2023 performance and improved outlook are encouraging, shares seem to have gotten ahead of themselves. Trading at 38.5 times future earnings, Cameco's stock seems richly valued at this point, and investors may want to exercise patience before choosing to power their portfolios with this uranium stock.
