Jim Cramer’s Lightning Round: 8 Stocks to Watch

6. Cameco Corporation (NYSE:CCJ)

Cramer mentioned that Cameco Corporation (NYSE:CCJ) is expensive and said:

“Look, all the uranium players are up. I think that they’re going to amount to very little in the end. This is not an expensive stock. I understand why you want to be in it, not versus the others, but it is an incredibly expensive stock versus the rest of the market. That’s what I care about. I am a kaching kaching when it comes to Cameco.”

Cameco (NYSE:CCJ) supplies uranium for electricity generation and offers nuclear fuel processing, reactor technology, and related services to commercial utilities and government agencies worldwide. As per CNBC, on November 20, according to Goldman Sachs, the company is well-positioned for growth, particularly in light of the increasing demand for nuclear power in the United States.

The company is expected to benefit from uranium prices, which are projected to rise due to a widening gap between supply and demand. Goldman Sachs raised its 12-month price target for the stock to $64 per share, highlighting the company’s potential as uranium prices climb. The stock has risen by approximately 33% so far this year.

Analyst Neil Mehta highlighted the company’s integrated business model across the nuclear fuel cycle, emphasizing its strengths in uranium mining, conversion, fabrication, and nuclear services through its stake in Westinghouse. Mehta also noted that Cameco is an appealing partner for Western utilities due to its limited geopolitical risks, with operations primarily based in Canada and the U.S., alongside a single site in Kazakhstan.

According to the firm, Cameco’s (NYSE:CCJ) contracts are supported by favorable uranium pricing, with current contracts seeing prices ranging from $70 to $130 per pound, with the midpoint around $100, which is higher than the current spot price of approximately $80 per pound. Additionally, Cameco’s 49% stake in Westinghouse, which is poised to play a key role in the construction of new power plants with its AP1000 reactor, presents further growth potential, as noted by Goldman Sachs.