Cameco (TSX: CCO) has been one of the hottest TSX stocks over the past year. The company climbed nearly 86% as uranium prices surged and demand for nuclear energy gained global momentum. At over $104 per share, it’s no longer a hidden gem. But there’s still one big reason investors might want to consider buying the stock. Cameco stock is positioned better than almost any other company to benefit from the world’s nuclear revival.
Source: Getty Images
Why Cameco?
The story of Cameco’s rise over the past year has been about more than just commodity prices. In the second quarter of 2025, revenue jumped nearly 47% year over year while net income soared to $321 million from $36 million a year earlier. The company reported adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $673 million. This reflects strength not just in uranium mining but also in fuel services and its 49% stake in Westinghouse.
That last piece is critical. Westinghouse was awarded a contract to build two new nuclear reactors in the Czech Republic, providing a steady stream of revenue and lifting Cameco’s outlook for the rest of 2025. Management now expects its share of Westinghouse’s adjusted EBITDA to reach between $525 million and $580 million, a significant increase from earlier projections.
More to come
The bigger picture is what really matters. Nuclear power is back in favour as governments and industries push for clean and secure energy sources. Cameco stock sits at the centre of this shift with tier-one uranium assets in politically stable regions, a long-term contracting strategy that locks in pricing, and a balance sheet strong enough to weather volatility.
Cameco stock’s uranium average realized price is now expected to be $87 per pound for 2025, up from earlier guidance of $84, thanks to higher spot market prices. That pricing power underscores the structural supply constraints in the uranium market, where new projects are slow to come online and geopolitical tensions are pushing utilities toward reliable suppliers.
Considerations
To be fair, Cameco stock is not a cheap stock by traditional measures. It trades at over 62 times forward earnings, a valuation that reflects a lot of optimism. Production risks remain, especially at McArthur River and Key Lake, where labour availability and equipment timelines could impact output. While the company pays a dividend, the yield is a token 0.15%, so income seekers will find little comfort here. Still, investors aren’t buying Cameco stock for its current income. They’re buying it for its unique positioning in a sector that could be entering a decades-long growth cycle.
What’s clear is that Cameco has evolved from a cyclical mining stock into a more diversified nuclear power play. Its integration across uranium, fuel services, and nuclear technology through Westinghouse gives it leverage in every part of the supply chain. When paired with its long-term contracts and strong liquidity, the company has set itself up not just to ride the current wave of high uranium prices but to anchor itself as a critical player in global energy security.
Bottom line
That’s why the one reason to buy Cameco stock today is simple: it’s the best pure-play on nuclear energy’s resurgence. The stock may look expensive, but with governments investing in new reactors, industries demanding clean power, and supply chains tightening, Cameco stock is positioned to benefit more than almost anyone else. For investors who believe the nuclear renaissance is real, Cameco remains the go-to choice on the TSX.
