Oil price shocks drove energy stocks higher earlier this year, but that geopolitical risk premium could fade fast following the signing of a U.S.-Iran interim peace deal. There’s no market panic, but rather a swift rotation away from upstream oil producers.
Companies such as AltaGas (TSX:ALA), Aecon Group (TSX:ARE), and 5N Plus (TSX:VNP) stand to benefit the most from this macro shift. Besides delivering market-beating returns thus far in 2026, all three stocks have a clear “Buy Now” factor.
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Stable utilities
AltaGas serves global markets through two core segments. The Midstream business is engaged in liquefied petroleum gas (LPG) exports, natural gas gathering, processing and extraction, fractionation and liquids handling. It blends with the Utilities business that operates rate-regulated natural gas distribution and storage infrastructure.
This $16.8 billion infrastructure company has paid monthly dividends since 2010, and then changed the payment schedule to quarterly in 2022. If you invest today, the yield is 2.5%. At $53.97 per share, the hybrid stock is up 29% year-to-date. Hybrid because the business is half defensive (utilities) and half growth (midstream). Around 50% to 55% of earnings come from regulated U.S. natural gas utilities.
In Q1 2026, normalized EBITDA increased 19% year-over-year to a record $818 million. AltaGas increased its 2026 capital program to $1.7 billion and sees upside potential from continued strength in the LPG market. In Utilities, the company is advancing a portfolio of growth projects.
Structural infrastructure
Aecon has surged 44.4% over the last six months, with no signs of cooling. The industrial stock currently trades at $43.71 per share and pays a modest 1.8% dividend. ARE’s trailing one-year price return is plus-129.6%. The multi-billion-dollar infrastructure boom in Canada is a massive tailwind.
The $3 billion company is well-positioned to pursue opportunities in the evolving infrastructure and energy sectors to meet its security demands. Aecon boasts a diversified and resilient business model, with a recurring revenue base adding stability. Infrastructure investments across its focus areas are growing, including in power infrastructure.
As of Q1 2026, the backlog is a record-high of $10.9 billion, 70% of which are non-fixed-price contracts with inflation protection. According to Jean-Louis Servranckx, President and CEO of Aecon, the shift towards projects with appropriate risk-adjusted returns is ongoing.
Detached from commodity cycles
5N Plus hasn’t lost momentum since placing 7th on the 2025 TSX30 List, the flagship program for the 30 top-performing Canadian stocks. VNP is a non-dividend-paying stock but is a capital compounder. At $43.88 per share, the year-to-date gain is 131.8%, while the total three-year return is plus-1,203.8%.
The $3.9 billion global company produces specialty semiconductors and performance materials used in medical imaging, pharmaceuticals, renewable energy, and space power systems. Business thrives, as evidenced by surging revenues and earnings. In Q1 2026, revenue and net earnings rose 33% and 85.4% year-over-year, respectively, to $117.9 million and $17.8 million.
Buying window
The major sector rotation has opened a buying window for companies in infrastructure, utilities, and secular growth plays. Don’t wait for the rest of the market to catch on. AltaGas, Aecon, and 5N Plus are buy-right-now stocks.
