3 Energy Stocks That Are Quietly Becoming the Trades of the Year

Energy stocks are surging as data center demand for power is at an all-time high. According to research from Bank of America, electricity demand could soar at a pace that is five times faster over the coming decade compared to the past decade. On top of this, the ongoing conflict in Iran is driving oil and gas prices through the roof, putting energy squarely in the spotlight.

Companies like Cameco (NYSE: CCJ), Occidental Petroleum (NYSE: OXY), and Cheniere Energy (NYSE: LNG) have already seen remarkable gains of 24% or more to start 2026. Here's why these energy stocks are quietly becoming trades of the year.

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Cameco is riding the nuclear resurgence wave higher

Nuclear energy is enjoying a resurgence, and Cameco has been a standout performer as a result. The stock is up 27% year to date and 124% over the past year as countries commit to tripling their nuclear energy capacity. In the United States, nuclear energy has become a major focus as a clean-burning energy source for hyperscalers' insatiable appetite for power.

What makes Cameco compelling is its position across the nuclear value chain. The company is a major uranium miner, with stakes in McArthur River and Cigar Lake, two high-grade mines in Saskatchewan, Canada. It also has a 40% stake in the JV Inkai joint venture in Kazakhstan. Finally, it owns a 49% stake in Westinghouse Electric Company, a top supplier of nuclear services and equipment. As a result, Cameco benefits from rising uranium demand and the build-out of nuclear energy infrastructure.

According to the World Nuclear Organization, demand for uranium is expected to surge 28% by 2030 and could more than double by 2040. This surge is driven by more nations adopting nuclear energy and building new nuclear reactors. In the United States, regulators are looking to add 300 gigawatts (GW) to 400 GW in new capacity, including the goal of having 10 large reactors under construction by 2030.

For Cameco, growing demand for uranium should bode well for its mining business. Meanwhile, its stake in Westinghouse gives it upside exposure to the nuclear energy build-out, as Westinghouse technology is used in 50% of the world's nuclear reactors. For investors looking to play the upside in nuclear energy, Cameco is a top stock today.

Surging oil prices have propelled Occidental Petroleum

Occidental Petroleum has gotten off to a strong start this year, with the stock up 35% year to date, driven by high oil prices amid the ongoing conflict in Iran. The disruptions in the Strait of Hormuz have impacted 20 million barrels of oil per day, or roughly one-quarter of the world's oil. With Brent Crude oil currently trading at around $100 per barrel, oil and gas companies like Occidental stand to benefit.

In the first quarter, Occidental delivered strong results, producing 1.4 million barrels of oil equivalent per day with adjusted earnings per share of $1.06, well above expectations. In February, Occidental placed costless collar hedges on 100,000 barrels of oil per day. When the conflict drove crude prices higher, the company recorded derivative losses on its crude collars, partially offsetting its net income for the quarter.

Looking forward, Occidental projects it will produce 1.44 million barrels of oil equivalent per day, and projects that unconventional production in the Permian Basin will increase in the second quarter. The company will also continue to focus on operational efficiencies and aims to reduce its debt to below $10 billion by the end of this year. It is also targeting $1.2 billion in incremental cash flow from cost efficiencies, before factoring in oil price increases.

Disruptions in natural gas infrastructure have helped Cheniere Energy

The conflict in Iran has also caused significant disruptions to the liquified natural gas (LNG) markets. QatarEnergy's LNG facility in Ras Laffan was targeted in the conflict, effectively removing roughly 7 million tons of supply from the global market each month. Cheniere Energy is a top U.S. LNG producer whose stock has surged 24% since the start of the year.

Although natural gas prices spiked, Cheniere's first-quarter earnings results don't reflect this. In fact, the LNG company reported an operating loss of $2.5 billion, primarily due to $5.4 billion in non-cash unfavorable changes in the fair value of its derivative instruments. This is due to a timing mismatch between when Cheniere must mark-to-market its derivatives for accounting purposes and when it actually sells its gas at some future date.

This makes it appear that Cheniere had a significant paper loss, but the underlying business remains sound. Consolidated adjusted EBITDA increased by 25% from last year to $2.3 billion, thanks to record production. Looking forward to the rest of this year, Cheniere projects production of 52 million to 54 million tonnes of natural gas, and raised its full-year guidance for distributable cash flow from $4.6 billion at the midpoint to $5 billion.

Bank of America is an advertising partner of Motley Fool Money. Courtney Carlsen has positions in Cameco and Occidental Petroleum. The Motley Fool has positions in and recommends Cameco and Cheniere Energy. The Motley Fool recommends Occidental Petroleum. The Motley Fool has a disclosure policy.