Cameco Corp (NYSE:CCJ): A High-Growth Momentum Stock with Strong Technical Breakout Potential

The method for finding high-growth momentum stocks with strong technical setups blends fundamental growth measures with technical analysis to identify possible breakout opportunities. By filtering for stocks with a High Growth Momentum (HGM) Rating over 4, a Technical Rating (TA) over 7, and a Setup Rating over 7, investors can locate companies showing both rising earnings momentum and positive chart formations. This method matches strategies like CANSLIM and Minervini, which highlight the significance of earnings growth, relative strength, and consolidation breakouts.

Cameco Corp (NYSE:CCJ) appears as a candidate fitting these conditions. Below, we explain why CCJ matches this approach.

High Growth Momentum Fundamentals

The HGM Rating measures short-term earnings momentum, growth speed, and analyst outlook. CCJ earns a 6, indicating strong growth traits:

• Strong EPS Growth:
  • Quarterly EPS growth (Q2Q) rose 407.1% in the latest quarter, with the next quarter projected to grow 3,708.7% year-over-year based on forecasts.
  • TTM EPS growth is 52.5%, showing steady profit improvement.
• Revenue Growth:
  • Sales increased 46.7% year-over-year in the last quarter, with TTM revenue up 34.7%.
  • Sequential revenue growth has been steady, with earlier quarters showing 24.6% and 40.2% gains.
• Free Cash Flow Growth:
  • FCF per share climbed 377.8% over the past year, highlighting better cash generation.
• Profit Margin Growth:
  • Margins jumped to 36.6% in the last quarter, up from 8.8% in the previous quarter, showing operational efficiency.
• Analyst Updates:
  • Next-year EPS estimates were raised by 7.7% over the last three months, reflecting positive sentiment.

These figures match the HGM Rating’s emphasis on speed, surprises, and updates—key factors for momentum investors.

Technical Strength and Setup Quality

CCJ’s technical report highlights its strong price movement and consolidation pattern:

• High Technical Rating (10/10):
  • The stock is in a clear uptrend, beating 94% of all stocks over the past year and 96% of its industry peers.
  • Both short-term and long-term trends are positive, with the stock near its 52-week high ($80.32).
• Good Setup Rating (7/10):
  • Prices have held between $70.42 and $80.32 over the past month, reducing volatility and forming a possible breakout area.
  • Key support sits at $74.81 (trendline) and $72.93 (multi-timeframe confluence), providing a clear risk level.
  • Resistance is noted at $79.60–$79.92, with a move above this zone indicating further gains.

The setup suggests a possible entry above $79.93 (just above resistance) with a stop below $74.80, capping risk to 6.4%.

Why This Pairing Works

High-growth momentum strategies succeed when fundamentals and technicals align:

• Fundamentals confirm the company’s growth is lasting and backed by earnings momentum.
• Technicals show market interest, with breakouts indicating institutional buying.

CCJ demonstrates this balance, offering both rapid earnings growth and a technically solid base.

Find More Breakout Opportunities

For investors looking for similar setups, our High Growth Momentum Breakout Setups Screen filters for stocks with strong growth, technical ratings, and setup patterns.

Disclaimer: This analysis is not investment advice. Always conduct your own research and consider risk management strategies before trading.