Should You Buy Cameco While It's Below $100?

It has been a banner year for investors in nuclear energy stocks and related exchange-traded funds (ETFs). Over the last year, the Global X Uranium ETF has surged 61%, while uranium miner Cameco (NYSE: CCJ) has jumped 81%.

As one of the top miners in North America, Cameco is well-positioned as the U.S. and other countries look to boost domestic production or nearshore it by relying on nearby countries. The company is benefiting from tailwinds and has one added factor that provides upside amid the nuclear build-out.

With the stock down 15% from its October peak and trading under $100 per share, is Cameco a buy? Let's dive into the business and its long-term opportunity to find out.

Cameco's Westinghouse stake could provide significant upside

Cameco mines uranium and provides nuclear infrastructure in North America. The company controls significant assets in key high-grade uranium mines in Canada, has ownership stakes in mines in Kazakhstan, and holds mining rights to uranium deposits in Australia. Also, its processing services refine uranium concentrates into uranium trioxide, a purified intermediate product, which is then converted into the final form required for reactor fuel.

Beyond its uranium mining and processing, its stake in Westinghouse Electric offers significant upside. Cameco acquired a 49% stake in Westinghouse Electric in late 2023 and jointly owns it with Brookfield Asset Management.

Historically, Cameco was a uranium miner. By owning nearly half of Westinghouse, it gains exposure to different parts of the nuclear value chain. Every new Westinghouse reactor requires a huge initial core load of uranium and decades of fuel reloads, giving Cameco a seat at the table to ensure its uranium and conversion services are the preferred choice for these reactors.

Image source: Getty Images.

This also helps diversify the miner's earnings. It now captures revenue from direct uranium and conversion fuel sales, as well as earnings from Westinghouse's services, maintenance, and construction profits. In the first nine months of 2025, Cameco's share of Westinghouse's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increased 78% year over year to $569 million.

Westinghouse will be a key player in building nuclear infrastructure

In October, the U.S. government, Brookfield, Cameco, and Westinghouse entered into a partnership to meet the rapidly increasing energy demands of artificial intelligence (AI) and data centers. As part of the agreement, at least $80 billion worth of new reactors will be built across the U.S. Westinghouse will deploy its AP1000 large-scale reactor and its AP300 small modular reactor, and the partnership is expected to help streamline the permitting process.

The AP1000 reactor is fully licensed, modular, and operating at scale in the Western world. It's the only reactor of its kind to use fully passive safety systems (relying on gravity and natural circulation rather than active pumps) and has been certified by the U.S. Nuclear Regulatory Commission. With its proven design, it is becoming the default choice for nations seeking to break away from Russian or Chinese energy dependence.

And many of the next-generation small modular reactors require high-assay low-enriched uranium (HALEU), which is currently produced at scale almost exclusively by Russia. Meanwhile, the AP1000 runs on standard low-enriched uranium (LEU), and the infrastructure for LEU already exists in the U.S. and among its allies. By focusing on the AP1000, the U.S. can scale up nuclear power immediately without waiting a decade to build a domestic HALEU enrichment industry.

Beyond the $80 billion deal with the U.S. government, Westinghouse is a leading contender for Canada's nuclear expansion, and Poland and Bulgaria are building Westinghouse units to replace Soviet-era reactors.

The structure of its partnership with the U.S. government features a profit-sharing mechanism. Once active, the government is entitled to 20% of all cash distributions by Westinghouse that exceed a cumulative total of $17.5 billion. This structure ensures that if Westinghouse becomes highly profitable through government-backed domestic and international expansion, American taxpayers share in that success.

Cameco is a top stock for the nuclear build-out

Cameco stock isn't cheap, trading at around 92 times this year's projected earnings and 65 times next year's projected earnings. That said, analysts foresee strong growth from Cameco, with earnings per share (EPS) expected to increase by 47% in 2026 and by another 33% in 2027.

CCJ Annual EPS Estimates data by YCharts; TTM = trailing 12 months.

For Cameco shareholders, the Westinghouse stake provides options. If uranium prices remain flat, Cameco could still see strong growth from Westinghouse's high-margin service contracts and new builds. If uranium prices spike, the miner should reap a substantial windfall, which is where the upside potential lies.

Cameco is a strong option if you are looking to invest in the nuclear power expansion and believe it can justify the stock's high valuation.

Courtney Carlsen has positions in Cameco. The Motley Fool has positions in and recommends Brookfield Asset Management and Cameco. The Motley Fool has a disclosure policy.