Why I’m More Excited Than Ever About Cameco Stock

Cameco (TSX:CCO) stock dropped 22% after news it’s investing in an electric company, but here’s why I’m excited.

Cameco (TSX: CCO) has been a volatile stock over the past few years. And I’m certainly not saying that’s suddenly changed overnight. However, with current market volatility taken into consideration, here’s why I’m more excited than ever about Cameco stock.

The meme stock craze is passed

While it may come back in the future, as of writing, the meme stock phase for Cameco stock is currently passed. We don’t have to worry at present about investors feeding the stock only to sell it. If that happens again one day, then sure, sell at enormous highs! But for now, this has reduced volatility to normal levels.

And don’t get me wrong; those levels are still high. Cameco stock is currently up about 11% year to date. However, it’s by far lower than where it was during the meme stock phase. In fact, it’s far lower than it was just a month ago. Shares of Cameco stock are now down by 22% in the last month alone.

Their loss is your gain

Shares of Cameco stock mainly fell over the last week after announcing it would take a stake in a new electric company. This means it’s going to be putting attention onto more than just uranium. At the outset, this may not be the smartest idea.

That’s because the world desperately needs uranium, so you would think the company would want to invest itself more into this area. After all, Russian sanctions has left the world with even less uranium than it had before. And uranium prices are climbing because of it. So, why not invest in uranium companies instead?

The answer is simple: longevity. Cameco stock is looking for ways to diversify its investments for long-term renewable energy planning. And that makes sense, which is what I want to cover next.

For now, don’t think long term

Here’s the thing: I’m excited about Cameco stock as a short-term investment. Let me be clear: by short term, I mean like three to five years, not decades. In the next few years, the world is going to sorely need these uranium companies that power nuclear reactors. And Cameco stock is one of the world’s largest.

With higher prices of uranium comes higher profits, putting it in a strong position for growth. So, after this recent fall is done, investors are likely going to come flooding back.

That being said, as of now, one investment in an electric company does not a solid profile make. With that in mind, I’d plan on waiting for ultra-high share prices, and selling once I meet my goals for returns.

Bottom line

For now, Cameco stock is a great buy. Shares are down 22% in the last month, and it remains in a strong financial position with just 22.71% of equity need to cover all debts. It continues to see earnings rise and is using that cash to diversify. So, if I were you, I’d use this recent downturn to your advantage and invest in Cameco stock before it recovers.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

More on Metals and Mining Stocks

financial chart graphs and oil pumps on a field
Stocks for Beginners

What $10,000 in Freehold Royalties Could Add to Your Income Over a Year

Freehold could produce about $634 in annual income from a $10,000 budget, with commodity prices still influencing the payment.

Read more »

copper wire factory
Stocks for Beginners

Ivanhoe Sits on 43,000 Tonnes of Unsold Copper as Prices Stay High: Is the Stock a Buy?

Ivanhoe holds 43,000 tonnes of unsold copper at Kamoa-Kakula. Does this make the miner a buy for your portfolio right…

Read more »

top TSX stocks to buy in november 2026
Metals and Mining Stocks

Top Motley Fool Stocks to Buy in November 2026

Unbridled optimism is now being served with a dose of skepticism, and you know what that means: It's time to…

Read more »

todder holds a gold bar
Metals and Mining Stocks

Alamos Gold Tumbled 12.5% in 5 Days: Should Gold Investors Be Worried?

Alamos Gold fell 12.5% in five days after Q3 results and slipping gold prices. See what went wrong at Island…

Read more »

telecom towers concept for wireless technology
Stocks for Beginners

Europe’s Carbon Border Tax Could Reshape Canadian Steel: This Producer is Spending to Get Cleaner

Algoma’s electric-furnace transition could improve its competitive position, while current losses make this a recovery investment.

Read more »

A plant grows from coins.
Stocks for Beginners

European Financing Is Coming for Canadian Resources: This Copper Stock Has the Scale to Benefit

Teck offers producing mines and a development pipeline, while new European financing still needs approved borrowers.

Read more »

panning for gold uncovers nuggets and flakes
Metals and Mining Stocks

Why Gold, Silver, and Copper Miners Keep Sliding, and What It Means for TSX Mining Stocks

Falling precious-metal prices have rattled TSX miners, but these two producers still offer strong long-term potential.

Read more »

quantum correlation
Stocks for Beginners

Europe Wants Canada’s Critical Minerals: This TSX Stock Already Makes the Finished Product

Neo has started shipping the magnets Europe needs, giving investors something tangible behind the summit headlines.

Read more »