Uranium specialist Cameco (NYSE:CCJ) has struggled in recent sessions as investors digested its latest financial results. While the print was somewhat downcast, the market appears to be ignoring the broader positive backdrop. Therefore, CCJ stock could be a higher-risk, higher-reward contrarian bullish opportunity.

On Tuesday, the uranium producer reported a net loss of $7 million in the first quarter. The comparison to the year-ago quarter’s $119 million profit was rough. Further, sales declined to $634 million (versus $687 million) as uranium sales slipped below what experts had anticipated. Nevertheless, Cameco’s management team stressed that the results are in line with its 2024 outlook.

RBC Capital Markets analyst Andrew Wong maintains confidence in the business, noting that the Q1 rumblings were tied to sales timing issues. Wong maintained an “outperform” rating on CCJ stock, along with a $70 per share price target. That’s well above the median price target of $54.68.

“We believe this is a fundamentally solid result for Cameco. We believe the long-term positive uranium thesis remains intact, Cameco continues to execute well, and would be buyers of weakness,” wrote Wong in a note to investors.

Bears Ignore the Fundamentals

Despite the analyst’s pleadings, CCJ stock has struggled since its quarterly report. Many of the problems center on wider economic concerns. As well, the current geopolitical flashpoints – and the possibility of tensions flaring – have contributed to a downbeat environment. Nevertheless, these same concerns also fuel bullish speculation for Cameco.

Russia controls almost half of the global uranium enrichment capacity. Further, Bloomberg News reported that President Joe Biden is considering banning enriched uranium imports from Russia. Combined with the U.S. labor market’s resilience and global population growth, critical energy supplies could decrease.

CCJ stock represented one of the top highlights in TipRanks’ screener for unusual stock options activity on May 1. Specifically, it appears that traders are selling 20 Dec. 2024 $50 calls. That is, they believe CCJ won’t rise above $50 prior to the Dec. 20 expiration date.

Trade of the Day: Buy CCJ Stock Call Options Instead

For the trade of the day, I’m looking to buy CCJ stock call options instead of selling them. In particular, the 21 June 2024 $48 call looks attractive because of the relatively high volume combined with open interest. In addition, the bid-ask spread as represented by the midpoint price (1.08%) was very reasonable.

It’s true that CCJ stock faces multiple resistance barriers between Wednesday’s closing price ($46.92) through $49.44. However, the fundamentals at the current juncture are more pronounced.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.