We recently published a list of 12 Best Uranium Stocks to Invest in According to Analysts. In this article, we are going to take a look at where Cameco Corporation (NYSE:CCJ) stands against other uranium stocks to invest in.
Nuclear power is making a notable comeback. More than 20 countries pledged to triple nuclear energy by 2050 at the COP28 summit. Nuclear power is considered crucial for lowering emissions, and it is gaining support from both environmental advocates and US national security interests, though for different motivations. Big tech companies are also getting involved as they hunt for more energy to power massive data centers.
Uranium is not presently categorized as a “critical mineral” by the US Geological Survey (USGS) because it is classified as a fuel mineral. However, President Trump is pushing for its inclusion in the list, which would gather federal support and speed up project approvals. This seems like a sensible play on Trump’s part, as demand for uranium is climbing, and the US relies almost entirely on imports, with most of the world’s supply originating from a handful of countries. Uranium prices were at a 16-year high in 2023 and, while they have dipped marginally, they remain higher than at any time since Fukushima in 2011.
In December 2024, John Ciampaglia, CEO of Sprott Asset Management, told CNBC that the uranium industry had been on life support for nearly a decade after Fukushima, and there needed to be better supply discipline in the market. Uranium producers need to ensure that future supply matches demand. He noted that three factors supported the industry – first, the growing electrification in China, India, and other developing countries, secondly, energy security and decarbonization are putting the focus back on nuclear fuel as an energy source, and third, tech companies are now investing in the development of small modular reactors. He also commented on uranium spot and market prices, which are gradually moving upward. He believes uranium prices need to go higher to incentivize chemical producers and miners to increase production and build new mines, which is critical to developing uranium as a reliable electricity fuel in the coming decades.
Current supply shortages, higher long-term prices, and forecasts for record nuclear energy production in 2025 all point to a positive future. With that industry outlook in mind, let’s take a look at the best uranium stocks to buy according to analysts.
A close up of the reactor core, highlighting the complexity of the uranium power process.
Our Methodology
For this article, we searched credible websites and compiled an extensive list of US-listed uranium stocks. Next, we manually searched for the average upside potential of each stock and selected 12 stocks with the highest values. The list below is ranked in ascending order of the upside potential as of April 19. We have also mentioned the hedge fund sentiment as of Q4 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Cameco Corporation (NYSE:CCJ)
Number of Hedge Fund Holders: 65
Average Upside Potential: 44.12%
Cameco Corporation (NYSE:CCJ) is a Canadian company that supplies uranium for electricity generation. The company runs three main divisions – Uranium, which covers everything from mining to sales; Fuel Services, which handles the refining and conversion of uranium; and Westinghouse, which delivers nuclear technology and services to power plants. It is one of the best uranium stocks to look out for, with an average upside potential of 44% as of April 19.
On March 12, Stifel Canada started coverage of Cameco Corporation (NYSE:CCJ) with a Buy rating and a price target of C$90. Stifel is optimistic about Cameco’s future, noting that rising uranium prices and the company’s solid financial performance, including 21.18% revenue growth, position it well for success. The firm also sees potential in Cameco’s Uranium and Fuel Services segments, particularly its 49% stake in Westinghouse Electric Co., which they believe is undervalued.
Cameco Corporation (NYSE:CCJ) reported net earnings of $172 million for full-year 2024, with adjusted net earnings of $292 million, reflecting higher sales volumes and better prices due to supply concerns. The company generated $905 million in cash from operations and saw a 73% increase in adjusted EBITDA, reaching over $1.5 billion. Cameco also earned $483 million in adjusted EBITDA from its stake in Westinghouse. The company’s uranium segment delivered 33.6 million pounds of uranium at $79.70 per pound, while the fuel services segment delivered 12.1 million kgU at an average price of $37.87 per kgU. By the end of 2024, CCJ had $600 million in cash, $1.3 billion in debt, and a $1 billion undrawn credit facility. It also expects strong cash flow in 2025.
According to Insider Monkey’s Q4 data, 65 hedge funds held long positions in Cameco Corporation (NYSE:CCJ), compared to 60 funds in the prior quarter. Richard Driehaus’ Driehaus Capital held a notable stake in the company, with 2.24 million shares worth $115.4 million.
Overall, CCJ ranks 10th among the best uranium stocks to invest in according to analysts. While we acknowledge the potential of CCJ as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. 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 this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.