A Canadian Stock Poised for a Massive Comeback in 2026

A stronger fertilizer market and operational momentum could help power this Canadian stock higher in 2026 and beyond.

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Key Points
  • Nutrien (TSX:NTR) is benefiting from strong demand across its potash, nitrogen, and retail businesses.
  • The company returned US$409 million to shareholders in the first quarter through dividends and share repurchases.
  • Improving operations and strategic portfolio changes could support Nutrien’s growth in 2026 and beyond.

Sometimes, the best investment opportunities emerge in market sectors that have been overlooked during periods of uncertainty. Agriculture is a perfect example. While agriculture has faced its share of headwinds in recent years, long-term demand drivers remain firmly in place. Regardless of economic conditions, farmers need crop nutrients and agricultural services to maximize yields and meet growing food demand. That creates opportunities for companies that play an important role in the global food supply chain.

One TSX-listed dividend stock that stands out in this sector right now is Nutrien (TSX: NTR). After delivering solid operational results with the help of improving industry conditions, this agricultural giant could be set for a major comeback. In this article, I’ll explain why Nutrien looks like one of the most compelling Canadian stocks to watch in 2026.

Income and growth financial chart

Source: Getty Images

Nutrien stock: A global leader in agriculture

Simply put, Nutrien is one of the world’s largest providers of crop inputs and agricultural services. Headquartered in Saskatoon, the company runs its business across four key segments: Nutrien Ag Solutions — its retail arm, Potash, Nitrogen, and Phosphate.

Its large production and distribution network allows it to serve growers across multiple regions while benefiting from scale advantages that many competitors simply can’t match.

After climbing nearly 12% so far in 2026, NTR stock now trades at $96.35 per share, giving the company a market cap of about $46.3 billion. In addition to its growth potential, the stock offers a dividend yield of 3.1%.

Strong results support the bull case

Last month, Nutrien released its results for the first quarter of 2026, showing the strength of its business despite ongoing market volatility. The company reported a net profit of US$139 million compared to just US$19 million a year ago. Similarly, its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) jumped 30% year over year (YoY) to US$1.11 billion last quarter.

A major contributor to these results was Nutrien’s potash business, which delivered record sales volumes during the quarter. Encouraged by these results, the company’s management increased production from its low-cost North American assets to meet tightening global fertilizer supply and demand conditions.

Building a stronger business for the future

Beyond its improving financials, Nutrien continues to focus on initiatives that could strengthen long-term profitability and free cash flow generation. The company is actively working to simplify the business, improve capital efficiency, and sharpen its focus on core assets. As part of this strategy, it’s reviewing strategic alternatives for its Phosphate business, Trinidad Nitrogen facility, and Brazilian Retail operations. These moves could make its portfolio more focused and resilient while improving overall earnings quality.

During the quarter, Nutrien also completed the acquisition of a high-quality retail business located in the U.S. Corn Belt, further expanding its presence in an important agricultural region.

Why 2026 could be a breakout year

Looking ahead, Nutrien remains confident in meeting its full-year 2026 guidance. This includes Retail segment’s adjusted EBITDA guidance of US$1.75 billion to US$1.95 billion and Potash sales volume guidance of 14.1 million to 14.8 million tonnes.

Its Nitrogen business is expected to benefit from reliability improvements and operational enhancements, while the Phosphate segment continues to gain from projects completed in 2025. Combined with tightening global fertilizer fundamentals and improving demand for agricultural products, these factors could create a favourable environment for Nutrien in the years to come.

Given these positive factors, Nutrien could be a Canadian stock worth considering in 2026, especially for investors looking for exposure to a critical global industry with long-term growth potential.

Fool contributor Jitendra Parashar has no position in any of the stocks mentioned. The Motley Fool recommends Nutrien. The Motley Fool has a disclosure policy.

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