Why Cameco Is Poised to Outperform

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, uranium producer Cameco (NYSE: CCJ  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Cameco and see what CAPS investors are saying about the stock right now.

Cameco facts

Headquarters (founded)

Saskatoon, Canada (1987)

Market Cap

$7.2 billion

Industry

Industrial metals and minerals

Trailing-12-Month Revenue

$2.4 billion

Management

CEO Timothy Gitzel (since 2011)

CFO Grant Isaac (since 2011)

Return on Equity (average, past 3 years)

8.9%

Cash/Debt

$676.7 million / $1.0 billion

Dividend Yield

2.2%

Competitors

AREVA

BHP Billiton (NYSE: BHP  )

Rio Tinto (NYSE: RIO  )

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 98% of the 1,828 members who have rated Cameco believe the stock will outperform the S&P 500 going forward.

A few months ago, one of those Fools, All-Star RockyMountainMan, succinctly summed up the Cameco bull case for our community:

[H]ighest grade [uranium] assets in the world located in [northern Saskatchewan, Canada]. The Japan meltdown took the steam out of this sector but world needs power. >100 nuclear plants coming online in the next decade. Enriched [urainum] is mostly consumed. Expect a move up, otherwise play it in the $18-$24 range until breakout.

If you want market-thumping returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite its five-star rating, Cameco may not be your top choice.

If that's the case, we've compiled a special free report for investors called "The Tiny Gold Stock Digging Up Massive Profits," which uncovers a smaller miner with big potential. The report is 100% free, but it won't be around forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.


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