We recently published a list of the 15 Small-Cap Energy Stocks Hedge Funds Are Buying. In this article, we are going to take a look at where Cameco Corp. (NYSE:CCJ) stands against other small-cap energy stocks.

On April 12, Bill Perkins, Skylar Capital Management CEO, appeared on ‘Closing Bell Overtime’ on CNBC to talk about how the energy sector is struggling due to fears of decreased fuel demand. Perkins discussed that the trade policy majorly drives the sentiment across the energy landscape and hence affects natural gas, energy stocks, bonds, and other related assets. Noting the difficulty in predicting the long-term outcome of these policies, he questioned whether the tariffs are temporary. The conversation then shifted to the impact of recent tariff announcements. Perkins acknowledged that natural gas prices initially performed better than other commodities following the announcements, which gives rise to speculations that LNG could become a key bargaining chip in future trade negotiations. He explained that, at the time, natural gas fundamentals were strong, and the US had the potential to use LNG exports as a diplomatic tool to help reduce trade deficits with other countries.

However, Perkins acknowledged that the overarching macroeconomic fear of a global slowdown soon overshadowed these fundamentals, which affected both the crude oil and natural gas markets. As a result, prices dropped to levels that might stimulate some demand and offer a buffer against further declines, particularly if the tariff conflict drags on and risks pushing the economy into a recession or even a depression. Perkins also addressed the effect of price pressure on production, specifically referencing West Texas Intermediate (WTI) crude oil. He pointed out that WTI prices had reached a threshold (~$60 per barrel) where growth in the Permian Basin would likely halt or even decline. At these price levels, producers become reluctant to invest in new drilling, especially given the backwardated crude curve, which showed future prices at $58 to $59 per barrel.  This scenario would not only limit oil production growth in the Permian but also reduce the output of associated natural gas from the region. Perkins described this production restraint as a bullish factor that could help offset some of the prevailing uncertainty.

Perkins predicted that oil and gas executives would adopt a cautious tone in their commentary. He explained that, due to the unpredictability of the global macro environment, executives would likely let market signals guide their decisions about ramping up or scaling back drilling programs.

Our Methodology

We first sifted through the Finviz stock screener and Insider Monkey’s Q4 2024 hedge funds database. For this article, we define small-cap stocks as those that trade between $10 billion and $30 billion. We then selected the top 15 stocks according to hedge funds and ranked them in ascending order of the number of hedge funds that have stakes in them. In cases where an equal number of hedge funds held two or more stocks, we used the market cap as a tiebreaker.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

A close up of the reactor core, highlighting the complexity of the uranium power process.

Cameco Corp. (NYSE:CCJ)

Market Capitalization as of April 25: $19.15 billion

Number of Hedge Fund Holders: 65

Cameco Corp. (NYSE:CCJ) provides uranium for the generation of electricity. The company’s Uranium segment explores, mines, purchases, and sells uranium concentrate. The Fuel Services segment refines, converts, and fabricates uranium concentrate. The Westinghouse segment operates as a nuclear reactor technology OEM and provides products/services to commercial utilities and government agencies.

On March 12, Stifel Canada started coverage of Cameco with a Buy rating and a price target of C$90. Stifel is positive on the company due to the rising uranium prices and Cameco’s solid financial performance. Cameco’s revenue increased by over 33% year-over-year to $834.83 million, which exceeded estimates by $68.38 million. The full-year 2024 revenue also shot up 21% due to higher prices. The company’s average realized price rose 17% to $58.34 per pound while its sales volumes grew 5%.

Cameco Corp. (NYSE:CCJ) delivered 33.6 million pounds of uranium at $79.70 per pound last year and expects 36 million pounds in total in 2025. The fuel services segment delivered 12.1 million kgU at an average price of $37.87 per kgU. The company’s long-term contracts stood at ~220 million pounds at the end of 2024, and it already has a large pipeline under discussion.

Aristotle Capital Management, LLC’s International Equity Strategy highlighted the company’s strong performance and stated the following regarding Cameco Corporation (NYSE:CCJ) in its Q4 2024 investor letter:

“Cameco Corporation (NYSE:CCJ), one of the world’s largest uranium producers, was a major contributor during the period. With the continued focus on artificial intelligence and clean energy, the demand for nuclear energy remained robust. Some of the largest companies in the world, such as Amazon, Google and Meta, announced nuclear power agreements in the quarter. Given Cameco’s tier-one assets in reliable jurisdictions, proven operating experience and strong reputation, we believe the company is in a unique position to benefit as various industries and governments pursue clean, reliable and scalable sources of energy. Correspondingly, Cameco increased its production outlook, having already secured commitments that net an average of 29 million pounds per year over the next four years. We believe Cameco’s continued ability to efficiently increase production while securing long-term contracts will lead to sustainably higher levels of normalized FREE cash flow. While its Canada-based mines and Westinghouse unit are executing well, production was recently suspended at Cameco’s Inkai joint venture in Kazakhstan. We believe production will restart soon and note that Cameco’s share of Inkai’s production amounts to less than 10% of total Cameco volumes, a figure that can be offset with increased production at the company’s MacArthur River and Key Lake mines in Canada.”

Overall, CCJ ranks 3rd on our list of the small-cap energy stocks hedge funds are buying. While we acknowledge the growth potential of CCJ, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than CCJ but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.