Why Cameco Stock Blasted Nearly 26% Higher Last Month

Source The Motley Fool

Key Points

  • The One, Big, Beautiful Bill supported the nuclear industry, not least because it essentially curbed certain forms of renewable energy.

  • The company also benefited from a large deal announced by a peer, and the performance of a portfolio business.

June was a fine month to be invested in uranium miner and nuclear energy services specialist Cameco (NYSE: CCJ). Nuclear received a significant boost from the Trump administration's One, Big, Beautiful Bill, which curbed subsidies and other advantages for producers harnessing rival energy sources. Developments elsewhere in the nuclear space also helped lift its stock.

Big and beautiful for the nuclear industry

The saga of Trump's bill didn't end until the president signed it into law in early July. Before that, however, it engendered controversy in several drafts by effectively bringing forward the expiration dates of federal subsidies that supported producers in the renewables segment, mainly solar and wind. Such measures survived, albeit in more limited form, in the final, passed legislation.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

A nuclear power plant photographed in the daytime.

Image source: Getty Images.

Notably, nuclear energy emerged largely unscathed, as its subsidy regime was mostly unchanged.

While lawmakers were in the early argument (whoops, discussion) and debate stages of the bill, the nuclear energy got a little power surge from a deal engineered between the industry's Constellation Energy and social media giant Meta Platforms, owner of Facebook, Instagram, and WhatsApp.

Under the terms of the arrangement, Constellation will supply Meta's server farms with over 1.1 gigawatts of energy from its Clinton Clean Energy Center nuclear plant in Illinois. The term of the deal, which is to kick in next June, is 20 years.

This should sound familiar to nuclear energy watchers and Constellation investors, as it has some of the dimensions of the deal struck between Constellation and another tech titan, Microsoft. The pair signed a contract for the former to provide the latter with power from the once-notorious Three Mile Island nuclear plant in Pennsylvania.

Cameco was not directly involved in the Constellation/Meta agreement, but of course, as with that monster piece of legislation, any win for one nuclear company represents a victory for the sector as a whole -- at least as far as Mr. Market was concerned.

A good direct investment

One development that did directly affect Cameco was early June's news about a company it partially owns, privately held nuclear power company Westinghouse Electric. Cameco said it expects an increase of roughly $170 million in additional non-GAAP adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for both Westinghouse's second quarter and the full year 2025.

Cameco, which holds a 49% stake in Westinghouse, anticipates that the higher EBITDA will "be taken into consideration" when the latter determines the 2025 distribution it'll pay the former.

So in short, Cameco is benefiting from top-down legislative developments, the rising popularity of nuclear power, and the operations of an important investment. It's no wonder investors were so energized by its stock last month.

Should you invest $1,000 in Cameco right now?

Before you buy stock in Cameco, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Cameco wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $699,558!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $976,677!*

Now, it’s worth noting Stock Advisor’s total average return is 1,060% — a market-crushing outperformance compared to 180% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of June 30, 2025

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Constellation Energy, Meta Platforms, and Microsoft. The Motley Fool recommends Cameco and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Bitcoin Outlook 2025As the Bitcoin market continues to mature, its 2025 outlook appears highly favourable, driven by institutional adoption and regulatory developments.
Author  TradingKey
Jan 23, Thu
As the Bitcoin market continues to mature, its 2025 outlook appears highly favourable, driven by institutional adoption and regulatory developments.
placeholder
Gold Price Forecast: XAU/USD attracts some sellers to below $3,350 amid tariff uncertaintyThe Gold price (XAU/USD) attracts some sellers to around $3,320 during the early Asian session on Monday.
Author  FXStreet
14 hours ago
The Gold price (XAU/USD) attracts some sellers to around $3,320 during the early Asian session on Monday.
placeholder
Tesla crashes along with gold and S&P 500 as Bitcoin makes highest weekly close everTesla stock opened the week with a red candle, falling to $315.35, a 0.095% dip that lined up with a broader selloff across US equities and metals.
Author  Cryptopolitan
13 hours ago
Tesla stock opened the week with a red candle, falling to $315.35, a 0.095% dip that lined up with a broader selloff across US equities and metals.
placeholder
Ethereum Price Pushes Higher — Eyes Set on Next Major BarrierETH is now back above $2,550 and might soon aim for more gains. Ethereum started a fresh increase above the $2,550 level.
Author  NewsBTC
12 hours ago
ETH is now back above $2,550 and might soon aim for more gains. Ethereum started a fresh increase above the $2,550 level.
placeholder
Musk Announces New "American Party" — Tesla Shares Tumble Over 7% Amid Valuation FearsTesla’s after-hours trading saw shares fall over 7% , wiping out more than $70 billion in market value and showing no sign of stabilizing by the time of writing.
Author  TradingKey
6 hours ago
Tesla’s after-hours trading saw shares fall over 7% , wiping out more than $70 billion in market value and showing no sign of stabilizing by the time of writing.
goTop
quote