Cameco Corp (NYSE:CCJ) Emerges as a High-Growth Momentum Leader

In the world of growth investing, combining technical strength with fundamental momentum often yields promising candidates. One approach gaining traction is the integration of Mark Minervini’s Trend Template, a method focused on identifying stocks in strong uptrends, with high growth momentum (HGM) criteria. This dual screening ensures that selected securities not only show strong price action and relative strength but also display accelerating earnings, sales, and profitability. The strategy emphasizes discipline, requiring stocks to meet strict technical benchmarks, such as trading above key moving averages and nearing 52-week highs, alongside evidence of fundamental improvement, like earnings surprises and margin expansion.

CAMECO CORP (NYSE:CCJ) recently emerged from such a screen, designed to filter for stocks that align with Minervini’s principles while also qualifying for high-growth investing. As a leading uranium producer headquartered in Saskatchewan, Cameco operates in a sector increasingly in focus due to global shifts toward clean and nuclear energy. The company’s recent performance and metrics suggest it may fit well within this strategic framework.

Technical Strength and Trend Template Alignment

Minervini’s Trend Template prioritizes stocks showing clear uptrends across multiple timeframes, and Cameco meets these criteria convincingly. The stock is trading above its 50-day ($76.13), 150-day ($59.04), and 200-day ($57.69) simple moving averages, with all averages trending upward, a key indicator of sustained momentum. Additionally, the current price of $78.11 sits more than 30% above its 52-week low of $35 and within 25% of its 52-week high of $83.02, fulfilling Minervini’s requirement for proximity to new highs and significant recovery from lows.

Relative strength is another cornerstone of the Trend Template, and Cameco performs well here with a ChartMill Relative Strength rating of 92.26, indicating it outperforms over 92% of all stocks. This is reinforced by its sector leadership; within the Oil, Gas & Consumable Fuels industry, Cameco outperforms 96% of its peers. Such strength is vital under Minervini’s methodology, as it suggests institutional interest and a higher probability of continued outperformance.

High Growth Momentum Fundamentals

Beyond technicals, the High Growth Momentum aspect requires strong fundamental acceleration. Cameco shows notable growth across several key metrics:

• Earnings Growth: Recent quarterly EPS growth is exceptional, with a 407.14% year-over-year increase in the last quarter. The previous quarters also showed strong improvements: 23.08% and 71.43% in the prior two periods, respectively. Even with some volatility in earlier quarters, the trend is decisively upward.
• Sales Expansion: Revenue growth has been consistently strong, with a 46.66% increase in the most recent quarter and 24.61% and 40.23% in the previous quarters. Annual revenue growth stands at 34.68% over the trailing twelve months, indicating sustained demand.
• Profit Margin Improvement: Margins have expanded significantly, with the last quarter reporting a profit margin of 36.59%, up from 8.84% in the prior quarter and 11.45% two quarters ago. This improvement suggests operational efficiency and pricing power.
• Estimate Revisions: Analyst optimism is evident, with next-year EPS estimates revised upward by 21.04% over the past three months. Such revisions often precede continued fundamental strength and are a key element in high-growth screens.

These metrics align with Minervini’s emphasis on fundamental catalysts, such as earnings surprises and estimate revisions, which can drive further price appreciation. The combination of technical breakout potential and fundamental acceleration makes Cameco a notable candidate for growth-oriented investors.

Technical Analysis Overview

According to ChartMill’s technical report, Cameco scores a perfect 10 out of 10 on technical rating, reflecting excellent health across trend, moving average alignment, and relative strength. The setup rating of 7 indicates a consolidation pattern near resistance, suggesting a potential breakout opportunity. Key support levels are identified between $76.13 and $77.42, with resistance around $79.60 to $79.92. A breakout above $79.93 could signal a new upward leg, with a stop-loss suggested near $76.12 to manage risk.

The stock’s performance has been impressive over the past year, with a 93.68% gain, and it is currently trading near its 52-week high. With both short-term and long-term trends positive and the S&P 500 also in an upward trend, the broader market environment supports continued strength. For a detailed technical analysis, readers can review the full technical report here.

Conclusion

Cameco Corp represents a noteworthy example of a stock that satisfies both Minervini’s Trend Template and high-growth momentum criteria. Its technical strength, characterized by rising moving averages and high relative strength, is complemented by accelerating fundamentals, including surging earnings, expanding margins, and positive analyst revisions. While past performance is not indicative of future results, the alignment of these factors suggests a potential continuation of its upward trajectory.

Investors interested in exploring similar opportunities can find more results by using the High Growth Momentum + Trend Template screen. This tool helps identify stocks that combine technical excellence with fundamental growth, providing a disciplined approach to uncovering potential leaders.

Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. Readers should conduct their own research and consult with a qualified financial advisor before making any investment decisions. Past performance is not indicative of future results.