Why Cameco Corp Is the Best Buy in the Uranium Industry

The uranium mining industry is getting hit hard by a downturn in this key nuclear fuel. Look no further than the deep 75% share price decline at Cameco Corp (NYSE: CCJ) over the past decade for proof of that. Cameco is the largest publicly traded pure-play uranium miner. This miner, however, is the best buy in the uranium industry and it isn't just about size.

Size is important for Cameco, there's no question about that. There are larger companies that mine for uranium, like Rio Tinto (NYSE: RIO). But uranium is little more than a rounding error for the giant iron ore, copper, and aluminum miner. In 2016 uranium made up roughly 1.3% of revenues and 0.4% of EBITDA. Buying Rio Tinto may or may not be a great idea, but it certainly is not a way to get material exposure to uranium. Cameco basically gets all of its revenue from uranium or businesses related to uranium.

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Source: Fool.com