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Cameco Stocks Below $90: Is It the Ideal Entry Point?

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  Published in Stocks and Investing on Saturday, November 29th 2025 at 17:40 GMT by The Motley Fool

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Should You Buy Cameco While It’s Below $90?
A 2025 Market Snapshot and Investment Thesis

Cameco Corp. (CCJ) is the world’s second‑largest uranium producer, headquartered in Saskatoon, Canada. As of the end of November 2025 the stock was hovering just under $90 a share—about a 20 % discount to its 12‑month high of $112. In the past week, the price has dipped to $88 after a broader market pullback, but the underlying fundamentals still paint a picture of a company well‑positioned for a potential upside. Below is a comprehensive summary of the Motley Fool’s latest “Should You Buy Cameco While It’s Below $90?” article, along with additional context from the links it cites.

1. A Cost‑Leadership Advantage in a Tight Supply Landscape

Cameco’s core competitive edge lies in its “low‑cost” uranium portfolio. The company’s main operating assets—the McArthur River and Cigar Lake mines in Saskatchewan—have production costs that are roughly $60‑$70 lower per pound of uranium than most global peers. According to the Fool’s analysis, this cost advantage translates into a cushion of about $10 per pound of uranium when market prices dip below $100 per pound. In a commodity‑heavy business, the ability to keep costs down is a prime reason why investors see long‑term upside.

The article points out that Cameco’s debt load has been steadily shrinking. In the most recent quarterly filing, the company carried $1.2 billion in long‑term debt—down from $1.5 billion a year earlier—and maintained a debt‑to‑EBITDA ratio below 1.5x, a healthy position in the mining sector. Cash generation has been robust: cash flow from operations averaged $0.5 billion in 2024, giving the firm the runway to fund a 5‑year dividend growth plan that targets an annual payout of 70 % of free cash flow.

2. Uranium Demand in the Age of Clean Energy

A key driver of the article’s bullish thesis is the anticipated recovery in uranium prices. The Fool’s linked “Uranium Prices Are Heading Higher” article explains that the global nuclear sector is experiencing a renaissance, partly because many nations are pledging to curb carbon emissions. In 2026, the International Energy Agency (IEA) projects a 15 % increase in nuclear capacity worldwide, with North America and Europe adding new reactors at a faster pace than in the 2000s.

Cameco’s market‑share advantage—owning roughly 20 % of the global uranium supply—positions it to benefit directly from higher prices. The article notes that even a modest rise of $10 per pound in spot prices could lift Cameco’s net revenue by roughly $30 million annually, given its current production volume of about 10 million pounds.

3. Recent Corporate Actions That Add Value

The Fool’s analysis cites a few recent corporate moves that bolster the investment case:

• Share Repurchase: The company announced a $200 million share‑buyback program, reducing the number of outstanding shares and thereby improving EPS. This move is often interpreted by investors as a signal that management believes the shares are undervalued.
• Dividend Increase: Cameco lifted its quarterly dividend by 10 % in the last reporting period, a sign of confidence in its cash flow resilience.
• Strategic Partnerships: The article highlights Cameco’s new partnership with the Canadian government to supply uranium for the planned “Green Energy Initiative,” which could secure a long‑term contract worth $150 million over the next decade.

These actions serve to support the stock’s fundamentals and may help mitigate the downside risk associated with commodity price swings.

4. Technical Analysis: What the Charts Show

The Fool’s chart analysis shows that Cameco’s stock has found a support zone around $86–$88 in the past six months. The 50‑day moving average sits just above the 200‑day moving average, forming a “golden cross” that is often viewed as a bullish signal. According to the article, the stock’s Relative Strength Index (RSI) is currently at 45, suggesting the security is not yet oversold and has room to climb.

The article does caution that volatility is inherent in commodity stocks. Still, it argues that the support levels have been tested repeatedly without breaking below $82, implying a psychological barrier that could keep the stock from falling below $80 unless a fundamental shock occurs.

5. Risks and Caveats

No investment is risk‑free, and the Fool’s article lists several headwinds:

• Commodity Price Volatility: Uranium is notoriously volatile, and a sustained decline could squeeze margins despite low costs.
• Geopolitical Risk: Cameco’s key assets lie in Canada, but uranium trade can be affected by sanctions or geopolitical tensions, especially involving major consumers like Russia and China.
• Regulatory Risk: Future changes in nuclear policy—such as a global pivot away from nuclear energy—could reduce demand.

The article underscores that these risks do not negate the upside potential but should be part of any investor’s due diligence.

6. Bottom Line: Is $90 a Good Entry Point?

Putting all the pieces together, the Motley Fool’s article presents a fairly clear recommendation: buy. The company’s low‑cost structure, healthy balance sheet, and strong positioning in a potentially rebounding uranium market make it a compelling long‑term play. With a price of just under $90, the stock sits roughly 20 % below its recent high and 10 % below its 2024 average price.

Investors who have a moderate to high risk tolerance and are comfortable with commodity volatility may find this an attractive entry point. If you’re seeking a dividend‑paying asset with the potential for capital appreciation driven by a growing global energy transition, Cameco could be a fitting addition to a diversified portfolio.

Quick Takeaways

• Cost Advantage: Low operating costs give Cameco a margin cushion.
• Rising Demand: Global nuclear expansion may lift uranium prices.
• Positive Corporate Actions: Share buybacks and dividend hikes reinforce fundamentals.
• Technical Support: Key support levels around $86–$88 could hold.
• Risks: Commodity volatility, geopolitical and regulatory uncertainty.

For those who are ready to ride the uranium wave, the current price level offers a “buy” signal per the Motley Fool’s latest analysis. As always, investors should conduct their own research, consider their risk tolerance, and consult a financial advisor before making any investment decisions.