Cameco Corp (CCJ): Today's Featured Basic Materials Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Cameco ( CCJ) pushed the Basic Materials sector lower today making it today's featured Basic Materials laggard. The sector as a whole closed the day up 0.1%. By the end of trading, Cameco fell 60 cents (-2.7%) to $21.61 on average volume. Throughout the day, 2.5 million shares of Cameco exchanged hands as compared to its average daily volume of 1.8 million shares. The stock ranged in price between $21.54-$22.35 after having opened the day at $22.32 as compared to the previous trading day's close of $22.21. Other companies within the Basic Materials sector that declined today were: Great Basin Gold ( GBG), down 57.9%, Pure Bioscience ( PURE), down 17.1%, Energy Services of America Corporation ( ESA), down 14.5%, and GeoGlobal Resources ( GGR), down 11.4%.
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Cameco Corporation operates as a uranium producer, supplier of conversion services, and fuel manufacturer. The company's Uranium segment is involved in the exploration for, mining, milling, purchase, and sale of uranium concentrate. Cameco has a market cap of $8.82 billion and is part of the metals & mining industry. The company has a P/E ratio of 20.3, above the average metals & mining industry P/E ratio of 20 and above the S&P 500 P/E ratio of 17.7. Shares are up 23% year to date as of the close of trading on Tuesday. Currently there are 10 analysts that rate Cameco a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Cameco as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income.

On the positive front, Geokinetics ( GOK), up 40.1%, Altair Nanotechnologies ( ALTI), up 14.1%, KiOR ( KIOR), up 8.5%, and Great Northern Iron Ore ( GNI), up 8.2%, were all gainers within the basic materials sector with Noble Corporation ( NE) being today's featured basic materials sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the basic materials sector could consider Materials Select Sector SPDR ( XLB) while those bearish on the basic materials sector could consider ProShares Short Basic Materials Fd ( SBM).

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