Hillcrest Energy Technologies. (CSE: HEAT)
From concept to commercialization, Hillcrest is investing in the development of energy solutions that will power a more sustainable and electrified future.
The benefit of investing in growth stocks is the potential for lucrative returns in the short term. However, in the stock market, it is vital to stick to a long-term investment strategy. One Canadian stock on the TSX that has been a standout performer this year as demand for cleaner, greener energy continues to grow is Cameco (TSX:CCO). In addition to its industry-leading position, most importantly, Cameco stock has delivered outstanding returns to investors in both the short and long term.
Global warming and climate change are forcing governments around the world to transition to cleaner alternatives to fossil fuels to meet energy needs. In this process, nuclear energy, a proven clean alternative energy source, has begun to see a significant surge in demand. Nuclear energy is a cleaner and more sustainable form of energy production than fossil fuels. At this stage, countries around the world are increasing their investments in nuclear energy to meet their climate goals.
The resulting growing demand for uranium puts companies mining this material, which is vital to nuclear energy, in an excellent position to enjoy significant growth right now.
Cameco is a C$30.34 billion mining company headquartered in Saskatoon. As one of the world’s largest uranium producers, its industry-leading position gives it a significant advantage over other companies. Established producers like Cameco are benefiting from rising uranium prices due to a lack of significant investment in new uranium mines and supply chain disruptions over the past few decades. On top of that, Cameco enjoys higher profitability due to its low-cost operations.
The company operates some of the lowest-cost uranium mines in the world, so it has been able to remain profitable even at lower uranium prices. The company also has several long-term contracts at fixed rates, which provide stable income while protecting it from short-term price fluctuations. As interest rates come down, its manageable debt load will become easier. Coupled with large cash reserves, Cameco is well positioned to weather any short-term market volatility while continuing to invest in growth opportunities.
Cameco stock was last traded at C$69.87, up 80.82 per cent from its 52-week low. As governments around the world continue to increase their nuclear power capacity and more countries are building new nuclear reactors, the demand and price for uranium fuel will only grow in the coming years. In light of this, Cameco stock’s dominant position as a leader in the uranium mining industry makes it an excellent long-term investment to consider, despite the fact that the stock price has already surged significantly over the last year.
