5 Best Nuclear Stocks to Buy Now

1. Cameco Corporation (NYSE:CCJ)

Number of Hedge Fund Holders: 40   

Cameco Corporation (NYSE:CCJ) produces and sells uranium. On July 27, the company posted earnings for the second quarter of 2022, reporting earnings per share of $0.18, beating estimates by $0.17. The revenue over the period was $588 million, up over 55% compared to the revenue over the same period last year, beating estimates by $174 million. The company was founded in 1987 and is based in Canada. It has a market capitalization in excess of $12 billion as of September 13. 

On August 17, GLJ Research analyst Gordon Johnson maintained a Buy rating on Cameco Corporation (NYSE:CCJ) stock and raised the price target to C$48.40 from C$37.86, noting that the secondary supply of uranium will fall materially in 2023 due to overfeeding. 

At the end of the second quarter of 2022, 40 hedge funds in the database of Insider Monkey held stakes worth $477 million in Cameco Corporation (NYSE:CCJ), compared to 43 in the preceding quarter worth $751 million. 

In its Q1 2021 investor letter, Driehaus Capital, an asset management firm, highlighted a few stocks and Cameco Corporation (NYSE:CCJ) was one of them. Here is what the fund said:

“Cameco Corporation (NYSE:CCJ), the world’s largest publicly traded uranium producer, was a primary contributor for the quarter. After years of stringent operational discipline that included production cuts, inventory reduction and market purchases, the company has reported strengthening market fundamentals, as industry-wide supply concerns continue to abate. The improving conditions can provide Cameco Corporation (NYSE:CCJ) significant leverage to drive higher prices under its market-related contracts. Moreover, the company has obtained 70 million pounds of additional long-term contracts since the beginning of 2021, demonstrating Cameco’s strong position to capture increasing demand. Nevertheless, management has reiterated its commitment to maintaining supply discipline while continuing to invest in operational efficiency through automation, digitization and training. As such, the company expects to see significant improvements in cash flow generation, as it ramps up to its 2024 planned production capacity. We believe Cameco’s disciplined approach and conservative financial management continue to reinforce its long-term position and its ability to return value to shareholders. This was recently demonstrated when Cameco’s board approved a 50% increase to the company’s annual dividend for 2022.”

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