We came across a bullish thesis on Cameco Corporation on r/Valueinvesting by pencilthefrog. In this article, we will summarize the bulls’ thesis on CCJ. Cameco Corporation’s share was trading at $116.44 as of January 16th. CCJ’s trailing and forward P/E were 133.67 and 85.47 respectively according to Yahoo Finance.
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Cameco (CCJ) is positioned as a premier low-cost uranium producer with a compelling long-term outlook driven by structural supply constraints and rising global nuclear demand. As one of the largest uranium suppliers in the world, Cameco operates tier-1 mines in Canada, producing some of the highest-grade uranium globally. These mines offer long life spans, low operating costs, and strong long-term visibility, giving Cameco a durable competitive advantage.
The company benefits from a uranium market that is structurally undersupplied, as reactor demand consistently outpaces mine production. Tailwinds for nuclear energy are accelerating, with Japan restarting reactors, China constructing more reactors than the rest of the world combined, and Europe reconsidering nuclear as part of its energy transition. Additionally, the rapid expansion of data centers increases demand for reliable, clean baseload power, where nuclear plays a critical role.
Cameco’s main competitor, Kazatomprom, is larger in scale but operates in Kazakhstan, introducing geopolitical and supply-chain risks. Western utilities increasingly prefer secure and transparent suppliers, further strengthening Cameco’s market position. Key catalysts for the stock include multi-year utility contracts, rising uranium spot and contract prices, and potential supply disruptions at competitors, all of which could materially boost earnings and cash flow.
While risks such as uranium price volatility, operational disruptions, or regulatory changes exist, Cameco’s cost advantage, high-grade assets, and exposure to accelerating nuclear demand provide a strong risk/reward profile. For investors seeking long-term upside in the energy transition and a structurally advantaged commodity, Cameco represents a highly attractive opportunity.
Previously, we covered a bullish thesis on Centrus Energy Corp. (LEU) by devolution_king in October 2024, which highlighted the company’s strategic role in U.S. nuclear power, expected federal support, and rising AI-driven energy demand. LEU’s stock price has appreciated by approximately 503.51% since our coverage due to the thesis playing out and DoD contracts being delivered. pencilthefrog shares a similar bullish view on Cameco Corporation (CCJ) but emphasizes global uranium undersupply, high-grade Canadian mines, and accelerating international nuclear demand.
