The Saudi Nuclear Deal Isn’t a Uranium Story for Cameco. It’s a Westinghouse Story.

Uranium stocks rose this past week, but Cameco (CCJ) stands out from the group. The gains followed a recent nuclear power agreement between the United States and Saudi Arabia. This deal opens the door for U.S. companies to sell reactor technology and nuclear equipment to Saudi Arabia, with most uranium firms benefiting from the news, but Cameco has another reason to rise that the others do not. The company is a uranium miner, so it benefits from the same wave lifting the sector. But it also owns 49% of Westinghouse, the company that builds the AP1000 reactor at the center of the Saudi deal. That puts Cameco in a much stronger position. It mines the uranium, supplies the reactor through Westinghouse, and shares in the decades of fuel and servicing each reactor would need afterwards. 

The deal, however, is not final yet. It still needs a feasibility study and congressional review. President Donald Trump has also tied the deal to the condition that Saudi Arabia normalizes its relations with Israel. Building reactors takes years, so the money is a long way off as well.

Cameco has seen this play out before, though. CCJ stock jumped 23% in a single day last October when Westinghouse signed an $80 billion U.S. reactor deal. Saudi Arabia is just the start. Westinghouse says other countries are looking at the same reactor. 

Does the Saudi Deal Justify the Premium?

Cameco’s valuation is difficult to judge on its earnings. The forward price-to-earnings (P/E) ratio of 66.8 times has no meaningful five-year average to compare against, since the company was loss-making through most of the uranium downturn. Meanwhile, the forward price-to-sales (P/S) ratio of 15.6 times sits above the company’s five-year average near 10 times. While the premium is steep, it is also slightly misleading. For half of that five-year window, Cameco was a pure uranium mining firm. Today, the company also owns 49% of Westinghouse, a reactor business that the old average didn’t factor in.

The EPS outlook helps explain the premium. Analysts expect earnings growth of 30% in fiscal 2026 before surging 54% in fiscal 2027. The acceleration is primarily due to rising demand for nuclear power and the reactor deals being secured through Westinghouse. The balance sheet also looks clean. Cameco holds around $790 million in cash against roughly $726 million in debt. That is a strong position to be in for a company worth $37.9 billion by market capitalization. The latest Saudi deal is a clear indicator of why investors are willing to pay a premium for a name that mines uranium and holds a large share of the firm that builds the reactors. 

About Cameco Stock

Cameco supplies uranium and nuclear fuel products used to generate electricity. The company's operations include uranium mining, conversion, refining, and fuel fabrication. Cameco was founded in 1987 and is based in Saskatoon, Canada. 

Over the last year, CCJ stock has gained around 7% compared to the 16% return of the S&P 500 ($SPX). However, the picture has changed in 2026. While the S&P 500 has surged roughly 8% year-to-date (YTD), CCJ stock has slipped by about 7%. The recent performance gap suggests that investors have become more cautious about uranium and nuclear stocks.  

Cameco Beat Analyst Estimates in Q1

Cameco reported better-than-expected first-quarter fiscal 2026 earnings on May 5. The company generated CA$845 million in revenue during the quarter, beating consensus estimates and reflecting 7% year-over-year (YOY) growth. On the earnings side, non-GAAP EPS came in at CA$0.47, comfortably exceeding market expectations as well. 

Going forward, the company reaffirmed its full-year 2026 guidance and expects the financial performance to improve as the year continues. Cameco is also focused on expanding its long-term growth through projects such as the Westinghouse AP1000 reactor technology and Global Laser Enrichment. 

What Do Analysts Expect for Cameco Stock?

On July 16, Barclays marginally reduced is CCJ stock price target from $108 to $104 while reaffirming a “Hold” rating. Bank of America Securities also cut its price target from $143 to $140 but kept a “Buy” rating earlier this month. This indicates that analysts remain divided on Cameco's outlook.  

CCJ stock is currently covered by 20 Wall Street analysts and holds a consensus “Strong Buy” rating. The average price target of $128.70 offers 50% potential upside from current levels. The highest price target of $144 suggests the stock could climb as much as 67% from here.