5-Star Stocks Poised to Pop: Cameco

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Based on the aggregated intelligence of 130,000-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's business, and see what CAPS investors are saying about the stock right now.

Cameco facts

Headquarters (founded)

Saskatoon, Canada (1987)

Market Cap

$9.77 billion

Industry

Coal and Consumable Fuels

TTM Revenue

$2.44 billion

Management

CEO Gerald Grandey (since 2003)

CFO Kim Goheen (since 2004)

Return on Equity (average, last three years)

14.8%

Competitors

BHP Billiton (NYSE: BHP)

Rio Tinto (NYSE: RTP)

CAPS members bullish on CCJ also bullish on

Vale (NYSE: VALE)

General Electric (NYSE: GE)

CAPS members bearish on CCJ also bearish on

SunPower (Nasdaq: SPWRA)

Apple (Nasdaq: AAPL)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, fully 1,356 of the 1,392 members who have rated Cameco -- some 97% -- believe the stock will outperform the S&P 500 going forward. These bulls include asymmetry and All-Star nrlbuild, who is ranked in the top 5% of our community.

In late January, asymmetry tapped Cameco as an atomic opportunity:

Oil prices will not remain low for too much longer. Eventually electrical demand will force the use of nuclear power and [Cameco] is in a prime position. ... We are already seeing new nuclear power plants being started... It is only a matter of time.

In a pitch from late February, nrlbuild builds on that bull case:

In the long run nuclear power will become more prolific as the world seeks for alternatives to fossil fuels. The stability of uranium prices via the long contract period is a known quantity which can be planned around. They are the world's largest uranium miner. In the short run this company also owns a stake in gold mining company Centerra Gold, which is known to be a popular defensive position for people in an economy such as we are experiencing currently.

What do you think about Cameco, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 130,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Closed for 15 months – opening 10 days only! Get notified ahead of time as our expert portfolio manager invests $1 MILLION in the best opportunities from across The Motley Fool’s premium investment services. This is the first open since August 2008, by invitation only. Enter email below.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Apple is a Motley Fool Stock Advisor recommendation. The Fool owns shares of and options on Cameco. The Fool's disclosure policy always gets a perfect score.

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11/9/2009 4:01 PM
BHP $71.50 Up +3.54 +5.21%
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Cameco Corp (USA) CAPS Rating: *****
GE $15.85 Up +0.52 +3.39%
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