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Why Cameco Is Ready to Rebound

By Brian D. Pacampara, CFA - Apr 11, 2013 at 12:02PM

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Market-trouncing returns could be written in this 4-Star.

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, uranium producer Cameco (CCJ 2.27%) has earned a respected four-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

$7.8 billion

Industry

Coal and consumable fuels

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)

8.3%

Cash/Debt

$814.7 million / $1.6 billion

Dividend Yield

2%

Competitors

AREVA

BHP Billiton

Rio Tinto

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

On CAPS, 98% of the 1,834 members who have rated Cameco believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, All-Star Chemdawg, succinctly summed up the Cameco bull case for our community:

[R]eactors coming back online slowly but the uranium is so cheap it is not economical to mine. [T]hat won't stay that way long. Cigar Lake is due to start actually producing this year. [S]ometimes being the best has its advantages ... you stay alive when the weaker ones go 10 toes up. [O]utperform.

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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Stocks Mentioned

Cameco Corporation Stock Quote
Cameco Corporation
CCJ
$25.24 (2.27%) $0.56

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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