Cameco Stock Down to Below $90 -- Is Now the Time to Buy?

Cameco's stock price has dropped below $90, closing at $85.69 on October 1, marking a significant decline from its previous high of $135.24 in the past year. Despite this drop, the company's strategic position within the nuclear industry remains relatively unchanged. Cameco is not merely a uranium producer; it also engages in nuclear fuel services and holds a 49% stake in Westinghouse, providing exposure to uranium mining, reactor servicing, and other facets of the nuclear sector.

However, the tight supply of uranium continues to offer Cameco a competitive edge. According to uranium-market consultancy UxC, around 3.1 billion pounds of uncovered uranium are expected to be needed by utilities by 2045. Over the last five years, about 815 million pounds of uranium equivalent have been consumed by reactors, but only approximately 589 million pounds have been secured through long-term contracts. This discrepancy presents numerous opportunities for a well-established producer such as Cameco.