A hearty congratulations to investors who bought and held uranium giant Cameco’s (TSX:CCO) stock when its revenue was still going down five years ago. The contrarian investment could have paid off handsomely today. CCO stock has generated 258% in capital gains to shareholders during the past half-decade, thanks mainly to a nuclear market turnaround. Even so, shares appear undervalued.
Buoyed by a strong recovery in uranium prices, the uranium miner and nuclear fuel producer has seen its operations turn around for the better in recent years. Bullish investors bid up its share price as uranium prices finally broke out after a decade of persistent decline.
A $1,000 investment in Cameco stock five years ago could have more than tripled your money to $3,600 today. Good returns have been made, thanks mostly to a sustained rally in uranium prices from the decade lows around US$18 per pound recorded in 2016.
During the past five years,…
