Cameco Stock And Two Nuclear Energy Shares Backed by Long Term Power Demand

With energy markets on edge, oil prices sensitive to geopolitical shocks and central banks wrestling with inflation, many investors are looking again at dependable, large scale power sources. Nuclear energy stocks sit at the heart of that conversation, linking uranium supply, fuel processing and reactor technology to long term electricity demand. The Nuclear Energy Stocks screener helps filter this broad universe into a focused list of companies tied directly to uranium production, enrichment and nuclear power plants. In this article, you will see three stocks from the screener that illustrate different ways to gain exposure to this theme.

Cameco (TSX:CCO)

Overview: Cameco is a Saskatoon based nuclear fuel company that supplies uranium and related services to power plants across the Americas, Europe and Asia through its Uranium, Fuel Services and 49% owned Westinghouse segments. It covers much of the nuclear fuel cycle, from mining and processing uranium concentrate to providing reactor technology, components and maintenance services to utilities and government clients.

Operations: Cameco generates most of its revenue from its Uranium segment at about CA$3.0b and the Westinghouse segment at about CA$3.6b, with additional contribution from Fuel Services of roughly CA$0.6b.

Market Cap: CA$52.2b

Cameco provides exposure to both uranium production and the nuclear technology behind new reactor builds. It has long term contracts and a 49% stake in Westinghouse that link it to any expansion in nuclear power. Analysts have highlighted expectations for earnings momentum and margin improvements, but the stock trades at a premium P/E and its outlook depends on nuclear projects reaching final investment decisions. Delays or operational issues at assets such as Cigar Lake could change the situation. Recent US Department of Energy support for up to 10 Westinghouse AP1000 reactors illustrates the scale of potential project activity and also raises the stakes if timelines slip. Understanding Cameco’s contract book, cost base and capital intensity can help investors assess how it may fit within a diversified portfolio.

Cameco’s premium P/E and Westinghouse exposure suggest investors might be missing how contracts, capital needs and project timing all fit together. It is worth scanning the analysis report for Cameco for one crucial twist in the story.

WSP Global (TSX:WSP)

Overview: WSP Global is a Montreal based consulting firm that designs, engineers and manages large infrastructure and energy projects worldwide, from rail lines and highways to water systems and power plants. It also advises governments and companies on decarbonization, environmental impacts, digital building design and long term sustainability planning.

Operations: WSP Global generates revenue across Canada (CA$2.8b), the Americas including the US and Latin America (CA$8.4b), EMEIA regions (CA$5.3b) and the Asia Pacific region (CA$2.0b), reflecting a broad global footprint.

Market Cap: CA$24.4b

WSP Global sits at the crossroads of infrastructure renewal, digital transformation and lower carbon energy, including nuclear. This positioning puts its consulting and engineering skills in high demand for power grids, transport links and complex environmental projects. Analysts currently see a combination of flat revenue expectations with faster earnings growth, helped by higher margin advisory work, digital tools and a sizeable CA$16.3b backlog, while also flagging risks around high debt, acquisition integration and heavy exposure to public budgets. For investors who want to understand whether this valuation gap versus estimated fair value and analyst targets is justified, the central question is how durable WSP Global’s margins, contracts and balance sheet strength look through a full cycle, and that is where the deeper work begins.

WSP Global’s earnings growth story, high margin advisory work and CA$16.3b backlog look powerful, but the real tension sits in how that meets high debt and public budget exposure in the analyst forecasts for WSP Global

Bird Construction (TSX:BDT)

Overview: Bird Construction is a Mississauga based contractor that builds and maintains complex industrial, infrastructure and building projects across Canada, from mines, hydro and nuclear facilities to data centres, schools and hospitals, as well as providing specialized electrical, mechanical and civil services.

Operations: Bird Construction generates its revenue of about CA$3.5b entirely from the Canadian general contracting sector of the construction industry.

Market Cap: CA$4.2b

Bird Construction stands out in the nuclear energy theme because it sits at the intersection of multi year infrastructure spending, energy transition work and data centre growth. A roughly CA$1.0b wave of recent project wins across nuclear, LNG, mining, marine and schools adds to an already record backlog, while the Bell AI Fabric data centre partnership points to higher margin, specialized work tied to long term digital demand. At the same time, earnings are still built on thin 1.4% net margins, last year’s profits declined sharply, funding relies heavily on external borrowing and the P/E is well above peers. The key consideration for investors is whether this mix of green and nuclear linked projects, new debt structure and recurring maintenance contracts can support the earnings growth analysts are forecasting without a stumble on margins or project timing.

Bird Construction’s accelerating project wins and nuclear linked backlog look like only half the story; the real question is whether the current valuation fully reflects the growth potential hinted at in the analyst forecasts for Bird Construction

The three nuclear energy stocks covered here are just a starting point, with the full Nuclear Energy Stocks screener surfacing 54 more companies whose uranium, enrichment and reactor stories could be just as compelling. Use Simply Wall St to analyze and filter these stocks by the specific catalysts and narratives that matter to you, so you can identify the highest conviction ideas for your watchlist.

Take Control of Your Investment Journey

If Cameco or any of these companies have caught your attention, register for FREE with Simply Wall St and add your companies to a Watchlist to monitor the share price against the fair value and track any new developments as they happen. Once you've made your move, manage your holdings with our Portfolio Command Center that filters out the noise to deliver only the most critical, actionable updates. Throughout your journey, our Community allows you to filter the best ideas from thousands of investor perspectives. By uncovering hidden catalysts and risks early, you'll accelerate your decision-making and stay one step ahead of the market.

Seeking Fresh Alternatives Beyond Nuclear?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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