1. Cameco (NYSE:CCJ)
Number of Hedge Fund Investors: 60
Cameco (NYSE:CCJ) is one of the largest uranium producers globally, with key operations in Canada’s Athabasca Basin, including the Cigar Lake and McArthur River mines. Cameco (NYSE:CCJ) also provides uranium refining, conversion, and fuel manufacturing services, making it a vertically integrated player in the nuclear fuel cycle.
Cameco (NYSE:CCJ) is a significant player in the development of small modular reactors (SMRs) and the expansion of its uranium mining and processing operations. The company owns 40% ownership stake in the Inkai deposit in Kazakhstan, which is the world’s leading deposit of uranium, and provides a significant source for uranium production.
The company’s recent acquisition of a 49% stake in Westinghouse, a global supplier to the commercial power industry, has further strengthened its position in the market. This strategic move has not only expanded Cameco’s (NYSE:CCJ) service offerings but also provided a platform for the company to tap into the growing demand for nuclear energy. The company’s 49% stake in Westinghouse is expected to generate significant revenue and earnings growth in the coming years.
The nuclear industry is is driven by increasing global demand for clean and reliable energy. Cameco (NYSE:CCJ) is well-positioned to capitalize on this trend, due to its diversified business model, strategic partnerships, and expertise in the nuclear fuel cycle. The increasing demand for nuclear energy, driven by government policies to reduce carbon emissions and meet growing electricity needs, is expected to drive up uranium prices.
Cameco (NYSE:CCJ) is likely to benefit from this trend, given its significant uranium reserves and production capacity. Cameco (NYSE:CCJ) expects to deliver 32-34 million pounds of uranium in 2024, representing a 1.5% increase from the previous year. Additionally, the company’s expertise in uranium mining and conversion positions it well to capitalize on the growing demand for nuclear energy. In the second quarter, the company’s stock was held by 60 hedge funds with stakes worth $846.57 million. Driehaus Capital is the largest shareholder in the company with a stake worth $192.62 million as of June 30.
While we acknowledge the potential of Cameco (NYSE:CCJ) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than CCJ but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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