As we've hit the halfway point for 2012, now's a good time to look back at what's happening with the stocks that interest you. By making sure you know the important things that a company accomplished -- as well as the setbacks it experienced -- you can make a better decision about whether it's a smart investment for your portfolio.
Today, let's take a look at Cameco (NYSE: CCJ ) . The uranium miner took a big hit after Japan's nuclear reactor disaster in the wake of the earthquake and tsunami last year, as a backlash of anti-nuclear sentiment hit the industry. But with carbon emissions still a major issue, it's unlikely that most countries will abandon nuclear energy entirely. Let's take a quick look at how the stock is doing so far this year.
Stats on Cameco
|2012 YTD Return||22.7%|
|Market capitalization||$8.7 billion|
|Revenue, Most Recent Quarter||$564 million|
|Year-Over-Year Revenue Growth, Most Recent Quarter||18.9%|
|Net Income, Most Recent Quarter||$132 million|
|Year-Over-Year Net Income Growth, Most Recent Quarter||40.1%|
|CAPS Rating (out of 5)||***|
Source: S&P Capital IQ.
How is Cameco bouncing back this year?
Uranium miners had a very hard 2011, as the aftermath of Japan's disasters had a huge impact on the industry. NRG Energy (NYSE: NRG ) decided to write off almost half a billion dollars in losses on its South Texas Nuclear Development Project, while Germany said it would phase out its nuclear power program entirely in the long term.
As a result, stocks throughout the industry plunged. USEC (NYSE: USU ) went from seeing strong demand before the disasters to struggling to get by afterward, as its shares plunged more than 80% last year. Uranerz Energy (NYSE: URZ ) and Uranium Energy (NYSE: UEC ) both experienced similar declines, and even industry giant Cameco took damage, although less severe than its smaller peers.
But Cameco got a jump-start in February, when the Nuclear Regulatory Commission approved the first new nuclear reactor in the U.S. in 30 years. Although calls of a nuclear renaissance are overblown, the news did make it clear that nuclear energy isn't going away entirely, and demand for uranium will continue well into the future. The real key for Cameco will be China, which agreed last year to a production contract to deliver 29 million pounds of uranium concentrate through 2025. If emerging markets keep needing more energy, Cameco stands to gain.
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