3 Underrated Energy Winners Power Ahead Into 2026

Key Moments

Energy Sector Momentum Builds on Power Demand and Geopolitics

Energy names are attracting renewed investor interest as electricity consumption tied to data centers hits record levels. Research from Bank of America indicates that power demand could increase at a pace that is five times faster over the coming decade than in the previous ten years. At the same time, the conflict in Iran is sending oil and gas prices sharply higher, pushing the entire energy complex into focus.

Within this backdrop, Cameco (NYSE: CCJ), Occidental Petroleum (NYSE: OXY), and Cheniere Energy (NYSE: LNG) have emerged as standout performers, each advancing at least 24% in early 2026. Below is a closer look at the dynamics supporting these moves.

Cameco: Positioned Across the Nuclear Value Chain

Nuclear power is experiencing a revival, and Cameco has been one of the clearest beneficiaries. The company’s stock has climbed 27% year to date and 124% over the past year as governments move to triple global nuclear generation capacity. In the United States, nuclear has become a central component of the strategy to supply clean energy for hyperscalers confronting surging power needs.

Cameco’s appeal stems from its diversified presence across the nuclear ecosystem. The company is a leading uranium producer with interests in the McArthur River and Cigar Lake mines, two high-grade assets in Saskatchewan, Canada. It also holds a 40% interest in the JV Inkai joint venture in Kazakhstan. Beyond mining, Cameco owns a 49% stake in Westinghouse Electric Company, a major provider of nuclear services and equipment. This structure enables Cameco to capture value from both uranium demand and the build-out of nuclear infrastructure.

According to the World Nuclear Organization, uranium demand is expected to increase 28% by 2030 and could more than double by 2040 as more countries adopt nuclear power and construct additional reactors. In the United States, regulators are targeting an additional 300 gigawatts (GW) to 400 GW of nuclear capacity, including a goal of having 10 large reactors under construction by 2030.

For Cameco, stronger uranium consumption supports its core mining operations, while the Westinghouse investment provides exposure to reactor deployment, given that Westinghouse technology is used in 50% of the world’s nuclear reactors. For investors seeking targeted exposure to nuclear’s expansion, Cameco stands out as a key equity vehicle.

Occidental Petroleum: Leveraged to Higher Oil Prices

Occidental Petroleum has started the year with strong momentum, with its share price up 35% year to date. The move has been fueled by elevated crude prices tied to the conflict in Iran. Disruptions in the Strait of Hormuz have affected 20 million barrels of oil per day, representing roughly one-quarter of global supply flows. Brent Crude is trading at about $100 per barrel, directly benefiting producers such as Occidental.

In the first quarter, Occidental delivered robust operating performance, producing 1.4 million barrels of oil equivalent per day and generating adjusted earnings per share of $1.06, surpassing expectations. In February, the company implemented costless collar hedges on 100,000 barrels of oil per day. As the conflict pushed crude prices higher, Occidental recorded derivative losses on these collars, which partially reduced net income for the period.

Looking ahead, Occidental forecasts production of 1.44 million barrels of oil equivalent per day and anticipates an increase in unconventional output from the Permian Basin in the second quarter. Management intends to keep prioritizing operational efficiencies and has set a goal of cutting total debt to below $10 billion by year-end. In addition, the company is targeting $1.2 billion in incremental cash flow from cost-saving initiatives, excluding any upside from higher oil prices.

Cheniere Energy: LNG Beneficiary Despite Accounting Headwinds

The conflict in Iran has also disrupted liquified natural gas supply chains. QatarEnergy’s LNG complex in Ras Laffan was targeted in the conflict, effectively removing about 7 million tons of capacity from the global market each month. Cheniere Energy, a leading U.S. LNG exporter, has seen its stock climb 24% since the beginning of the year on the back of these developments.

Despite a sharp move higher in natural gas prices, Cheniere’s first-quarter reported results did not fully capture the underlying strength. The company posted an operating loss of $2.5 billion, largely attributable to $5.4 billion in non-cash, unfavorable changes in the fair value of its derivative instruments. This reflects a timing mismatch between when Cheniere must record mark-to-market adjustments for accounting purposes and when it ultimately sells the associated gas volumes in the future.

While this accounting treatment creates the appearance of a sizable paper loss, the core business remains healthy. Consolidated adjusted EBITDA rose 25% from the prior year to $2.3 billion, supported by record production levels. For the remainder of the year, Cheniere is guiding to production of 52 million to 54 million tonnes of natural gas and has increased its full-year distributable cash flow outlook from a midpoint of $4.6 billion to $5 billion.

Takeaway for Energy-Focused Investors

Cameco, Occidental Petroleum, and Cheniere Energy are each benefiting from powerful, though distinct, tailwinds: a global nuclear power build-out, higher crude prices driven by supply disruptions, and tight LNG markets. With all three stocks already advancing 24% or more to start 2026, they have quietly evolved into some of the most closely watched energy trades of the year among investors seeking exposure to these evolving market dynamics.