What happened

Extending the 12.5% rise they experienced in June, shares of uranium company Cameco (CCJ 0.39%) soared even higher last month. Investors chose to power their portfolios with Cameco after learning that interest in nuclear power is growing in Canada and the United States. Additionally, Cathie Wood's Ark Autonomous Technology & Robotics ETF repeatedly picked up shares of Cameco.

According to data provided by S&P Global Market Intelligence, shares of Cameco rose 31% in July.

So what

Expressing a renewed interest in nuclear power, Canada plans to build several new nuclear power plants in Ontario. According to an article published by Reuters on July 7, three small modular reactors (SMRs) will be situated in Ontario, with operations expected to begin between 2034 and 2036. This complements the SMR already in development in Ontario, which is expected to be completed in 2028.

And it's not only in the Great White North where nuclear power is gaining attention. Last month, the first new nuclear power plant in the United States commenced operations. After a decade in development, Unit 3 at Plant Vogtle in Georgia started generating power. Besides those living in the Peach State, customers in Alabama and Florida will receive power generated at the nuclear plant.

But wait -- there's more. Unit 4 at Plant Vogtle is also preparing to start operations, presumably before March 2024.

Believing that Cameco's stock could power gains in the Ark Autonomous Technology & Robotics ETF, well-known investor Cathie Wood picked up shares of Cameco several times in July. In four different transactions throughout the month, her Ark Autonomous Technology & Robotics ETF added a total of 348,320 shares.

Cameco is one of the world's largest producers of uranium for nuclear power plants. Operating assets in Canada, Kazakhstan, and the United States, Cameco has annual uranium concentrate production capacity of more than 30 million pounds.

Now what

While the growing popularity of nuclear power in Canada and the United States is an auspicious sign for Cameco -- one that echoes news in June that drove the stock higher -- interested investors should dig deep into Cameco before picking up shares. With the stock's recent rise, it's now trading hands at 206 times trailing earnings and 58 times operating cash flow. These are the sort of valuations consistent with growth stocks in the early innings of their developments, not well-established uranium mining stocks.