Canadian investors looking for essential items usually tend to move towards energy stocks. And that’s certainly a great move. These are an essential part of our everyday lives, from powering our vehicles to our homes.
However, energy goes far beyond oil and gas. In fact, commodity stocks like Cameco (TSX: CCO) provide a clear path towards even more energy essentials. And these two others fit the mold perfectly as well.
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Cameco stock
Cameco is one of the world’s largest publicly traded uranium companies. It engages in the exploration, mining, refining, conversion, and fabrication of uranium for sale as fuel for generating electricity in nuclear power reactors.
Cameco operates several uranium mines in Canada and the United States, including the McArthur River mine, Cigar Lake mine, and Key Lake mill in Saskatchewan, as well as the Inkai and Smith Ranch-Highland mines in Kazakhstan and the U.S., respectively. It also provides nuclear fuel services, processing uranium into fuel for nuclear reactors.
The move towards clean energy sources has been rewarding for Cameco stock, as its share price has surged in the last few years. Shares are up 79% in the last year alone. And this rise should continue as we turn our dependence on power towards nuclear power. So keep watching Cameco stock in 2024.
Lundin stock
Another commodity investors should certainly keep their eye on this year is copper. And that’s why Lundin Mining (TSX: LUN) is another sure winner if it keeps up with demand. Investors have been eyeing up gold and even silver prices at their all-time highs. But copper has been up there as well.
This is because demand for the stuff is at an all-time high. Copper is used for everything from copper wiring for power generation and electronics, to healthcare equipment thanks to its antimicrobial properties. And speaking of power, it’s used in every part of energy production, no matter what type of energy is used.
Given that Lundin focuses 60% of its production on copper, and higher production is predicted for 2024, Lundin stock is likely to keep soaring upwards. The company is up 55% in the last year alone, and doesn’t show signs of slowing.
Nutrien stock
Finally, if you’re looking for a commodity stock that could rebound in 2024, then I would keep an eye on Nutrien (TSX: NTR). Nutrien stock soared upwards when potash demand was high, but production was low. However, the price of potash then slumped, leaving the stock in the dust.
Yet this year, the company predicts better pricing and more production. Meanwhile, the stock is still a leading provider of agricultural products and services. Nutrien stock has quickly become one of the largest agricultural companies globally. And let’s be honest, we’ll always need to eat.
For now, shares of Nutrien stock trade at about half of all-time highs. However, it now offers a 4.12% dividend yield, and has recovered about 9% in a few months. So Nutrien stock could be one to watch as it continues to see a climb in share price in 2024.
