After leading the line over the last year we see many stocks/sectors playing catch up to the energy sector but we remain bullish through 2026:
- Oil & Gas: The Middle East conflict has been the dominant force across the entire energy complex in 2026, turbocharging WDS in particular. But with oil prices expected to soften over the coming months, our preference across both WDS and STO is to let weakness come to us, with both stocks materially more attractive, 3–8% lower than current levels.
- Coal: The fossil fuel is generating cash for shareholders. The war-driven surge in coal provided the perfect opportunity to trim WHC above $9. Both WHC and NHC remain core holdings based on their cash generation and capital returns, not on a structural bull case for coal prices, which remains challenged through 2028.
- Uranium: Remains a multi-year high conviction trade, but patience and discipline matter. The SMR-driven demand story is real and building, and we remain long both PDN and NXG with conviction. But this space is volatile, valuations can run hard and fast, and there are genuine operational and funding hurdles still to clear, particularly for NXG. We are likely to trim into strength, but we have no intention of losing our uranium exposure.
