In a landmark move, over 190 United Nations Climate Conference (COP28) members have agreed to transition away from fossil energy. The global pivot towards clean energy is expected to only accelerate this decade as the world races toward net-zero greenhouse gas emissions by 2050.
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The agreement seeks to triple the global renewable energy capacity. Further, over 20 countries have launched a declaration to triple nuclear energy capacity by 2050 at the conference. Nuclear energy can be partnered with renewable energy sources and stands to play a critical role in the 2050 net-zero emissions goal.
These developments have increased shares of Cameco Corp. (NYSE:CCJ) and Uranium Energy (NYSE:UEC) over the past month. Impressively, CCJ and UEC shares have rallied nearly 238% and 352%, respectively, over the past three years. In comparison, the S&P 500 Index (SPX) has gained about 27% during this period.
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However, the TipRanks Comparison Tool indicates that shares of these companies may be a tad bit expensive at current levels. CCJ is trading at a price-to-earnings multiple of 99, while UEC is trading at a price-to-earnings multiple in the high triple digits. While the Street has a Strong Buy consensus rating on both CCJ and UEC, analysts see the highest upside potential upside of 13.6% in CCJ stock with an average price target of $52.15.
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