Cameco Corporation (CCJ)
Shares of Cameco Corp. (CCJ) have more than doubled over the past twelve months as global demand for nuclear energy accelerates. Governments and utilities are increasingly prioritizing nuclear power as a reliable and carbon free solution to support AI data centers, electrification, and long term grid stability. This shift has driven a sharp increase in demand for uranium fuel, directly benefiting uranium producers and fuel suppliers like CCJ.
The United States already operates one of the largest nuclear reactor fleets in the world and is now fast tracking next generation and advanced reactor development to meet rising electricity demand from data centers and other energy intensive industries. The challenge is that the U.S. has historically relied on Russia for a meaningful portion of enriched uranium, leaving domestic energy security exposed to geopolitical risk and potential export restrictions.
To address this vulnerability, the U.S. passed the Prohibiting Russian Uranium Imports Act in 2024, which bans most imports of unirradiated Russian low enriched uranium, with limited waivers allowed through 2028. As a result, the U.S. has made domestic uranium mining, enrichment, and fuel production a strategic priority. This policy shift has fueled strong momentum across the North American uranium space, driving significant gains in names like $UEC, $UUUU, $CCJ, and others since the Act was signed.
CCJ
It is important to note that Cameco is not headquartered in the United States. It is a Canadian uranium producer with global operations and long term supply contracts with utilities around the world. Given the strong relationship between the U.S. and Canada, American investors view Cameco as a politically safe and reliable supplier of nuclear fuel at a time when energy security has become a top priority. That perception has allowed CCJ to command a premium valuation as uranium demand continues to rise.
However, that premium is now becoming increasingly stretched. CCJ currently trades at roughly 132 times earnings, a valuation that implies near perfect execution and sustained strength in uranium pricing, contract renewals, and production volumes. At these levels, the stock leaves little margin for error. Any pullback in uranium prices, delays in reactor buildouts, cost inflation, or changes in long term contracting activity could lead to outsized volatility.
Technical Analysis:
Looks like $CCJ broke into a new record high to kick off the new year, moving above its three month consolation range of 77.00-106.00. Buyers need to defend the 106.00ish+ area to avoid giving up the momentum and retracting a move back towards 80.00.
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