Cameco Corp. (NYSE:CCJ) Screened as High-Growth Momentum Stock with Strong Technicals

Cameco Corp. (NYSE:CCJ) has been identified through a screening process that combines Mark Minervini’s Trend Template with high-growth momentum criteria. This dual approach aims to isolate stocks exhibiting both strong technical momentum and solid underlying business growth, a methodology intended to capture equities with potential for sustained upward movement. Minervini’s framework emphasizes stocks in clear uptrends, supported by moving averages, relative strength, and proximity to new highs, while the growth component focuses on accelerating earnings, revenue expansion, and improving profitability.

Technical Strength and Trend Template Alignment

Cameco satisfies the core technical requirements of Minervini’s Trend Template, which is critical for confirming a stock is in a established uptrend. The current price of $76.82 trades well above key moving averages, specifically the 50-day ($73.63), 150-day ($56.00), and 200-day ($55.69) SMAs, with each average trending upward. This alignment indicates sustained bullish momentum across multiple timeframes, a hallmark of Stage 2 advancement. Additionally, the stock is trading within 5% of its 52-week high of $80.32 and has advanced over 119% from its 52-week low of $35.00, demonstrating strong recovery and leadership. Its relative strength ranking of 93.5 further confirms it is outperforming the vast majority of stocks, a key focus in Minervini’s strategy to identify market leaders.

Fundamental Growth Drivers

From a growth perspective, Cameco displays several characteristics that align with high-growth momentum investing. Recent quarterly earnings growth is exceptionally strong, with EPS increasing 407.14% year-over-year in the most recent quarter, following a 71.43% rise in the prior comparable period. Revenue growth has also been solid, up 46.66% in the last quarter, with previous quarters showing increases of 24.61% and 40.23%. These figures suggest accelerating operational performance, which often attracts institutional interest and drives further price appreciation. Profit margins have expanded significantly, reaching 36.59% in the latest quarter, up from 8.84% and 11.45% in prior quarters, indicating improved efficiency and pricing power. Analyst revisions support this optimism, with next-year EPS estimates revised upward by over 16% in the last three months.

Sector Leadership and Macro Tailwinds

Operating in the Oil, Gas & Consumable Fuels industry, Cameco has outperformed 95% of its peers, highlighting its sector leadership. The company’s focus on uranium production and nuclear fuel services positions it within a niche experiencing renewed interest due to global energy transition trends and emphasis on energy security. This macro backdrop provides a potential catalyst for continued growth, aligning with Minervini’s emphasis on investing in leading stocks within strong sectors.

Technical and Setup Assessment

According to ChartMill’s technical report, Cameco has a technical rating of 8/10, reflecting its strong trend health, and a setup rating of 8/10, indicating the stock is consolidating within a narrow range, potentially offering a favorable entry point. Key support is identified near $74.38, with resistance around $79.60. A breakout above this resistance could signal a continuation of the uptrend. The report highlights reduced recent volatility and a pullback that may offer a strategic opportunity for entry, contingent on a decisive move above resistance with volume confirmation. For a detailed analysis, review the full technical report here.

Conclusion

Cameco Corp. presents a strong case for investors following a combined momentum and growth strategy. It meets Minervini’s rigorous trend criteria, demonstrating technical strength and market leadership, while its fundamental growth metrics, including surging earnings, expanding margins, and positive analyst revisions, support the momentum narrative. As with any equity, thorough due diligence and attention to risk management are advised.

For more stocks that fit this screening methodology, explore the High Growth Momentum + Trend Template screen.

Disclaimer: This is not investment advice. All content is provided for informational and educational purposes only. Conduct your own research and consider seeking advice from a qualified financial professional before making investment decisions.