5-Star Stocks Poised to Pop: Cameco

2 Recommendations

Based on the aggregated intelligence of 115,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, uranium producer Cameco (NYSE: CCJ) has earned a coveted five-star ranking. Our data has shown that five-star stocks outperform the market by a significant margin; conversely, one-star stocks have woefully lagged the market average.

With that in mind, let's take a closer look at Cameco's business, and see what CAPS investors are saying about the stock right now.

Cameco facts

Headquarters (Founded)

Saskatoon, Canada (1987)

Market Cap

$7.05 billion

Industry

Consumable Fuels

TTM Revenue

$2.21 billion

Management

CEO Gerald Grandey (since 2003)

CFO Kim Goheen (since 2004)

Return on Equity (average last three years)

15.17%

Competitors

Rio Tinto (NYSE: RTP)

BHP Billiton (NYSE: BHP)

CAPS members bullish on CCJ also bullish on

Freeport-McMoRan Copper & Gold (NYSE: FCX)

Vale (NYSE: RIO)

CAPS members bearish on CCJ also bearish on

First Solar (Nasdaq: FSLR)

Baidu.com (Nasdaq: BIDU)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, fully 180 of 185 of the All-Star members who have rated Cameco -- some 97% -- believe the stock will outperform the S&P 500 going forward. These All-Star bulls include pencils2 and RonChapmanJr, both of whom are ranked in the top 1% of our community.

In January, pencils2 noted, "Nuclear power is more and more becoming the most plausible clean, cheap energy option for countries everywhere. Nuclear power is climbing up the ranks and Cameco is in a good position to benefit from nuclear expansion."

A more recent pitch from RonChapmanJr in late July follows that rationale, letting the company's unique position speak for itself:

I do not like the P/E on this one or even the earnings per share, but I do like this: "Cameco is also one of the four converters of uranium concentrates 'U3O8' to uranium hexafluoride 'UF6' in the western world, the only commercial supplier of services to convert uranium concentrates to uranium dioxide 'UO2' in the western world, and one of two Canadian commercial suppliers of fuel fabrication services for CANDU reactors."

What do you think about Cameco, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 115,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

On Oct. 7, 2008, Fool co-founder David Gardner and his Motley Fool Pro team will invest $1 million in a portfolio designed to help you make money in any market. In the coming weeks, the team, relying heavily on proprietary CAPS "community intelligence" data, will establish long and short positions in a broad range of securities, including common stocks, publicly traded put and call options, and exchange-traded funds. To learn more about Motley Fool Pro and to receive a private invitation to join, simply enter your email address in the box below.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Baidu.com is a Motley Fool Rule Breakers recommendation. The Fool's disclosure policy always gets a perfect score.

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Related Tickers

Cameco Corp (USA)

CCJ Up! $12.18 +0.37 (+3.13%) 3:00 PM
CAPS Rating:
1264 Outperforms
35 Underperforms
Rate This Stock

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