Key Points
- Cameco provides services and
fuel to nuclear power producers.
- Energy demand and energy security are increasingly important.
The geopolitical conflict in the Middle East has led to high oil prices, which is hardly a surprise. However, the situation highlights the importance of power to the normal functioning of the world economy. And it makes a company like Cameco, which provides fuel and services to nuclear power plants, look a lot more attractive.
Cameco is in the right place at the right time
Cameco has been a public company for a long time. It suffered through the deep uranium market downturn after the Fukushima nuclear meltdown. And it has survived to see the benefits of today's nuclear power renaissance, as electricity demand from data centers, AI, and electric vehicles has led to a reconsideration of nuclear power as a clean energy source.
Being a reliable nuclear fuel supplier with operations in economically and politically stable regions has paid off handsomely for the company. The stock is trading near its all-time highs and is up more than 200% over the past year. Over the past five years, the stock is higher by more than 600%. If you owned Cameco, you have made out very well.
Cameco's stock price is lofty
Cameco's business has changed in recent years, including its recent acquisition of a 50% stake in nuclear power service provider Westinghouse. That should help smooth out financial performance, given that uranium is a highly volatile commodity. Still, uranium prices are rising, which helps explain Cameco's massive stock price advance.
