For My Money, This Canadian Stock Is Hands-Down the Best Play of the Decade

Here’s why Cameco stock has been a growth marvel in my long-term oriented portfolio and may remain so through 2030.

| More on:
nuclear power plant

Source: Getty Images

If you’re looking for a single stock positioned to dominate the next 10 years, Cameco (TSX:CCO) stock could be an outright champion. While tech stocks gyrate on artificial intelligence (AI) hype and glory, and utilities grind higher, this uranium mining giant has quietly delivered a staggering 572% total return over the past five years. And we’re potentially in the early innings of a nuclear renaissance that could propel Cameco stock for the rest of the decade.

Why uranium? Why now?

Nuclear power is literally experiencing a global policy U-turn. Old climate targets, energy security fears, and the jaw-dropping power demands of AI data centres have governments from Washington to Warsaw (Poland) embracing atomic energy. The U.S. aims to quadruple nuclear capacity by 2050, while countries like Sweden and Japan are restarting reactors. This isn’t speculative – it’s a structural shift in global appreciation of the reliability and long-term cost-effectiveness of nuclear-powered electricity generation assets.

Critically, uranium markets are flashing scarcity. Long-term contract prices (where utilities secure long-term supply) have risen substantially from under US$35 per pound in early 2021 to hold at around US$80 over the past 13 months, according to Cameco’s data. Spot prices may wobble, but the long-term trajectory is locked in: Utilities need fuel, and Cameco owns the world’s highest-grade reserves and uranium enrichment assets in the geopolitically safest jurisdictions of Canada and the United States.

Cameco’s advantage in 2025

Cameco is ramping up production as uranium prices enter a new multi-year recovery and growth cycle, yet it retains significant optionality. Management’s strategy to curtail production and keep uranium pounds underground during a long winter past has proven successful. The company is resuming mining production in a strong uranium price environment to fetch the best, economically viable, and investor-friendly market prices for its uranium reserves and resources.

The uranium producer is a contracting genius. While some rivals chase spot markets during a uranium winter, Cameco strategically focuses on forward markets to lock in long-term contracts. This discipline delivered higher realized prices even as spot prices fell 30% earlier this year. With an average of 28 million pounds annually committed through 2029, Cameco has the revenue visibility most miners envy.

Most noteworthy, Cameco’s vertical integration via Westinghouse is proving to be a genius and well-timed acquisition deal. The company’s 49% stake in nuclear services leader Westinghouse isn’t just a footnote – it’s becoming a cash engine. Westinghouse’s recent wins on South Korean negotiations and a $170 million boost to Cameco’s 2025 adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) from Czech Republic reactor contracts are just the start. The investment’s projected 6–10% annual EBITDA growth ties Cameco directly to global reactor operations, not just fuel.

CCO stock: The growth engine is already firing

Analysts see Cameco’s earnings per share (EPS) exploding – 81% growth through 2026 and a 65% earnings surge over the next five years. That’s why institutional investors may shrug off Cameco stock’s forward price-to-earnings (P/E) ratio of about 50. They’re paying for hypergrowth in a sector with generational tailwinds.

Investor takeaway

Uranium prices will continue to fluctuate over the remainder of this decade. Yes, a 40% year-to-date gain invites near-term volatility on Cameco stock. But Cameco isn’t a mere uranium play anymore – it’s now a full-cycle nuclear infrastructure champion with low-cost mines, long-established contract discipline, and unparalleled leverage to the global nuclear-power generation buildout. For my money, it’s the single most compelling way I chose during the past five years to bet on the next decade of uranium-powered wealth growth. I will watch out for dips to accumulate more shares.

Fool contributor Brian Paradza has positions in Cameco. The Motley Fool recommends Cameco. The Motley Fool has a disclosure policy.

More on Metals and Mining Stocks

Metals
Stocks for Beginners

The Best Silver Mining Stocks to Buy in December

December’s silver setup looks strong as seasonality, tightening supply, and rising prices favour Pan American Silver and First Majestic.

Read more »

rising arrow with flames
Metals and Mining Stocks

These 2 Soaring Gold Stocks Still Look Super-Cheap!

Barrick Mining (TSX:ABX) and Orla Mining (TSX:OLA) stand out as golden opportunities in December 2025.

Read more »

nugget gold
Metals and Mining Stocks

Gold Prices Are at a Record High: What Canadians Need to Know

With gold at record highs, Agnico Eagle offers a low-risk way to ride the rally without losing sleep.

Read more »

nugget gold
Metals and Mining Stocks

Will This TSX Gold Stock Continue to Shine in 2026?

Allied Gold is a small-cap TSX stock that offers significant upside potential to shareholders, given its widening earnings growth.

Read more »

space ship model takes off
Metals and Mining Stocks

Gold is Booming: This is the 1 Top Gold Stock to Buy

Agnico Eagle Mines (TSX:AEM) might be one of the best investments to own leading into the next year.

Read more »

ETF is short for exchange traded fund, a popular investment choice for Canadians
Metals and Mining Stocks

The Best Silver Funds for Canadian Investors

CEFs and ETFs can provide more liquid and affordable exposure to silver prices than physical bars.

Read more »

Dog smiles with a big gold necklace
Metals and Mining Stocks

The Best Gold Funds for Canadian Investors

I like this CEF and ETF better than bullion for gold price exposure.

Read more »

People walk into a dark underground mine.
Metals and Mining Stocks

The Ultimate Mining Stock to Buy With $1,000 Right Now

This mining stock is going through a rally right now, and it might be the perfect time to dive into…

Read more »