Cameco Stock Is Down 42% From Its Record. Here's How I'd Buy It Around Its Oct. 30 Report.
2026-10-26 07:47
•Daniel Sparks •The Motley Fool
•••• •••••• Axe Cap view
Cameco's Big Drop: Time to Dip In or Stay Sidelined?
Despite uranium prices hitting highs, Cameco’s stock slump and high valuation suggest caution before buying.
Cameco's 42% fall since January looks like a knee-jerk reaction to higher interest rates and broad market jitters rather than a problem with uranium itself. Remember, uranium prices have reached levels not seen since 2007, touching about $96.50 a pound, but Cameco’s actual earnings don’t fully reflect this yet since many sales come from older, cheaper contracts. This gap creates tension between fundamentals and market valuation. The stock trades at roughly 40 times next year’s earnings, about twice that of the S&P 500, which isn’t cheap by any stretch. With its next quarterly report due October 30, I’d consider buying in stages if the numbers back the strong uranium story. South African investors should watch how this might ripple through mining sentiment on the JSE, especially for resource stocks. But if interest rates surge again or nuclear demand disappoints, this high valuation might quickly look too generous. this is just our opinion and not financial advice
Wait to start buying Cameco in smaller chunks around the earnings report, rather than jumping in all at once. Stay selective and don’t chase it at current multiples.
- CCJ
- USD/ZAR
- Further global interest rate hikes pushing valuations down
- Slower-than-expected nuclear energy adoption impacting uranium demand
6/10
Cameco's stock has fallen 42% from its January peak to $78.60, driven by broad market sell-offs and interest rate concerns rather than uranium fundamentals. Despite uranium prices reaching above 2007 peaks at $96.50/pound, Cameco's realized prices lag due to older contracts. The author suggests buying in stages around the Oct. 30 earnings report, noting the stock trades at 40x forward earnings—double the S&P 500—making it not yet a bargain despite solid long-term uranium demand.
Our take is based on reporting first published by The Motley Fool.