"For the past five years, investors who have stayed entirely invested in the highest-growth stocks in the market (and some of the largest-capitalization stocks in their sectors, for that matter) have outperformed. Not by a little bit, but by a lot. This has been an interesting period of time in which risk taking has been rewarded to an incredible degree, with plenty of market participants clearly believing this trend is one that will continue."
"There's something to that thesis, for sure. That said, it's also true that plenty of macroeconomic headwinds are picking up right now. From the geopolitical turmoil we've seen around the actions in Venezuela and rhetoric around Cuba, Mexico, Canada and Greenland, there's plenty for investors to keep their eyes on. And with inflation still not under control (but a quickly weakening jobs market by most accounts), it's going to likely be a volatile year for interest rate policy as well."
"So, with that in mind, let's dive into three companies that could be poised to provide defensive upside in such an environment. Notably, each of these three companies have been on a relative tear of late. However, I think these moves can continue well into 2026. Cameco Corporation (CCJ) For investors looking for a blue-chip uranium provider powering the nuclear industry, Cameco Corporation ( NYSE:CCJ) is one of my preferred ways to do so."
High-growth stocks have significantly outperformed over the past five years as risk taking was highly rewarded. Macroeconomic headwinds are increasing, including geopolitical turmoil involving Venezuela, Cuba, Mexico, Canada and Greenland, persistent inflation, and a weakening jobs market, which could drive volatile interest-rate policy. Three companies are identified as potential defensive sources of upside, each having recently rallied and possibly extending gains into 2026. Cameco is presented as a blue-chip uranium provider with expanding margins and derisked growth amid robust energy demand. Nuclear energy is positioned to meet rising base demand from energy-intensive data centers, and Cameco's high-grade, high-volume production has supported earnings when uranium prices stagnated.
Read at 24/7 Wall St.
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