When investors look at the opportunities coming out of Prime Minister Mark Carney’s investment summit earlier this month, it’s natural for your attention to gravitate towards the companies proposing the biggest new projects.
That makes sense, since those projects could create significant growth potential for years. However, a major project can also create years of work for the engineering firms and other businesses needed to get it built.
That’s why the summit was such a positive development for Canadian investors. The investments could create a tonne of opportunities for TSX stocks beyond the companies that own the projects.
In total, the summit generated nearly $500 billion in new investment commitments, almost half of the government’s broader goal of attracting $1 trillion in total investment over the next five years.
Furthermore, CPP Investments and Brookfield Asset Management launched the $50 billion Maple Fund to invest in Canadian infrastructure and strategic industries.
Meanwhile, the federal government also announced its Productivity Mega Deduction, designed to let businesses write off a wider range of capital investments sooner.
Therefore, although energy stocks and the war in Iran continue to dominate a lot of the headlines today, there are quietly a tonne of attractive long-term opportunities for investors as Carney continues to push Canada to diversify its economy and make it easier for businesses to invest in major projects at home.
So, with that in mind, if you’re looking to take advantage of these opportunities, here are two ways to benefit.
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One of the most intriguing projects from Carney’s investment summit
The simplest way to invest in projects that could help grow Canada’s economy for years is to buy shares of the companies developing them, such as NexGen Energy (TSX: NXE).
NexGen is intriguing because its Rook I uranium project in Saskatchewan was included in the summit prospectus, and construction is already underway.
The company received a licence earlier this year to prepare the site and build the mine. Once Rook I is operating, NexGen expects it could produce up to 30 million pounds of uranium annually, which would put it among the world’s largest uranium mines.
That gives the stock significant long-term potential, particularly as countries look to nuclear power to meet growing electricity demand.
It also makes access to capital important since NexGen estimates the project will cost roughly $2.2 billion to build.
Of course, investors buying NexGen today are investing in a mine that still needs to be completed before it can start producing uranium, so there are still considerable risks to be mindful of.
Nevertheless, with work already underway and a project that could substantially increase Canada’s uranium production, NexGen is one of the most interesting TSX stocks to watch as more capital flows towards major Canadian developments.
An engineering stock that can benefit from more projects
Besides investing directly in the stocks developing the projects, which can often come with high risks, another opportunity Carney’s investment summit created is for all the businesses needed to support them.
That includes companies supplying materials, railways moving them and a massive engineering firm like AtkinsRealis (TSX: ATRL) helping get the projects built.
Owning those businesses alongside some of the stocks running the projects is a great way to diversify and position yourself. AtkinsRealis has work across many different projects and can get paid for helping build them before any one mine starts producing uranium.
Furthermore, AtkinsRealis already had a $20.2 billion backlog at the end of June, even before Carney’s investment summit. That existing workload gives investors a business with projects already in hand, alongside the potential to win more as investment in Canada grows.
So, while NexGen offers more direct upside from one major development, AtkinsRealis gives investors exposure to the broader work involved in building and upgrading Canadian infrastructure.
