If you want to invest in the potential growth of the nuclear power industry but don't want to take on the risk of a reactor start-up like NuScale Power or own a "boring" regulated utility, you'll want to get to know Cameco (CCJ -3.70%). Without the nuclear fuel that Cameco produces, nuclear power plants can't run. But that's just the start of the company's story.

1 reason Cameco can be a stock to buy and hold forever

The world's demand for electricity is increasing, and so is its appetite for cleaner energy sources. These two trends underpin what looks like a nuclear renaissance today. There are many ways to invest in it, but the one thing every nuclear power plant needs is fuel.

Cameco is one of the world's largest providers of uranium fuel, mining it largely in politically stable regions like Canada, and it's working with strategic partnership Net Zero Nuclear to support tripling global nuclear capacity by 2050. Every new reactor will be a potential customer. Cameco will have a seat at the table simply because of its vital importance to the industry, but also because of its investment (along with Brookfield Asset Management) in Westinghouse, which has a long history of designing, building, and providing maintenance services to nuclear power plants.

It shouldn't be surprising that Cameco had a gangbuster year in 2024, with revenue jumping 21% and adjusted EBITDA up 73%. (Keep in mind that swings like those can happen in a commodity-driven industry, and volatility is pretty normal in the uranium market, with rare high-profile nuclear accidents in particular leading to long periods of weakness.)

Know before you buy

Cameco has proven resilient to the inherent ups and downs in the price of uranium. However, the Westinghouse investment could be an important stabilizing force. Westinghouse generates consistent revenue from its services business, a portion of which will ultimately flow through to Cameco's income statement. Westinghouse's connections, meanwhile, could allow Cameco advantaged access to customers. Although the Westinghouse investment is relatively new, it could be an important differentiating factor for Cameco's business over the long term.