If we consult stock market history, there is no doubt that, if your time horizon is long enough, your portfolio is capable of recovering from unimaginable disasters, from pandemics, to recessions, to world wars, in each case emerging stronger than it was before. The ongoing conflict between US-Israel, Iran and the broader Gulf Region is no exception. Peace will eventually prevail, oil and gas prices will reflect this calm, and we’ll all accommodate to a new normal that attempts to reconcile thousands of lives senselessly lost.
Be that as it may, it’s hard to argue against the appeal of renewable energy at a time like this, with Iran militarizing the Strait of Hormuz, displacing about 20 per cent of the world’s oil, as well as attacking some of the largest natural gas fields in the world, sending fuel prices up with irrational exuberance, all because of power’s propensity to look down on diplomatic paths forward. Remove our reliance on fossils fuels and geopolitical concerns naturally shift away from land grabs to renewable energy technology and environmental conservation.
While this shift is, in fact, ongoing, driven by trillions in investment capital, its glacial pace is obscuring the tangible progress humans are making towards a more sustainable form of life, one where the energy we generate and consume works out to a net positive for the planet. To illustrate this point, let’s profile three renewable energy stocks playing active roles in replacing oil and gas, displacing millions of barrels of oil equivalent per year thanks to differentiated infrastructure and technology, making them key considerations for the long-term investor.
Polaris Renewable Energy
Our first stock to watch is Polaris Renewable Energy, market capitalization C$256 million, which tracks an acquirer, developer and operator of renewable energy projects in Latin America and the Caribbean, whose solid financial track record has been met with poor returns over the past five years, opening the door for a potential value thesis.
Polaris’ portfolio includes a geothermal plant (~82 MW) in Nicaragua, four hydroelectric plants (~39 MW) in Ecuador and Peru, three solar photovoltaic projects (~35 MW) in Panama and the Dominican Republic, as well as an onshore wind park (~26 MW) in Puerto Rico, whose long-term government contracts extend as far as 2053.
The company grew revenue from US$60 million in 2021 to US$80 million in 2025, while growing EBITDA from US$44 million to US$57 million, respectively, maintaining an EBITDA margin of more than 70 per cent per year, with a growing pipeline of low-priced development and investment opportunities positioning leadership to continue taking advantage of the world’s push towards climate protection and AI infrastructure.
The broader market, however, has balked on the company’s proven ability to garner market share (see slide 20 of the January 2026 investor deck) while fostering shareholder value, weighing Polaris Renewable Energy stock (TSX:PIF) down by 43.65 per cent since 2021, with shares last trading at C$12.24, making for a questionably pessimistic assessment of an operation squarely aligned with the future of power consumption.
Cameco
Our second renewable energy stock ushering the world towards sustainability is Cameco, market capitalization C$62.8 billion, one of the world’s largest uranium producers, whose unmatched operations spanning Canada, Australia, Kazakhstan and the United States, include the world’s highest-grade reserves and the world’s largest commercial uranium refinery. According to the company’s latest investor deck, commodities on hand include:
- 433 million pounds of proven and probable reserves.
- 404 million pounds of measured and indicated resources.
- 152 million pounds of inferred resources.
- At the current price of US$84 per pound, this works out to more than US$83 billion in uranium in the ground.
Cameco produced 21 million pounds of uranium and 14 million of uranium fuel in 2025, representing 15 per cent of global demand, with 230 million pounds under committed long-term sales paving the way for the company to continue capitalizing on rising nuclear energy demand and posting attractive financial results. Recent milestones include:
- Almost doubling revenue from C$1.86 billion in 2022 to C$3.48 billion in 2025.
- Growing earnings per share by more than 6 times from C$0.22 in 2022 to C$1.35 in 2025.
- Tripling the annual dividend from C$0.08 in 2022 to C$0.24 in 2025.
With long-life assets across the mining lifecycle, including interests in refining, conversion and diversified nuclear technologies, Cameco benefits from the flexibility of vertical integration to both monetize and reinforce the ongoing shift towards decarbonization, bolstering uranium’s role in meeting ballooning overall energy demand with the scale and low costs required to gradually nudge oil and gas out of commission.
Investors largely agree, having lifted Cameco stock (TSX:CCO) by 148 per cent year-over-year and by 580 per cent since 2021, with shares last trading at C$146.93.
Hydro One
Our third and final renewable energy stock giving oil and gas a run for their money is Hydro One, one of the largest electric utilities in North America and the largest in the province of Ontario, serving approximately 1.5 million customers.
Hydro One has translated its leadership position into high-conviction income statements, growing revenue from C$7.78 billion in 2022 to C$9.04 billion in 2025, supported by earnings per share growth from C$1.75 to C$2.23, respectively, boding well for the company’s ability to participate in Canada’s rising electricity demand, which is expected to grow between 120-135 per cent from 2021 to 2050 to achieve net zero emissions (see slide 12 of the Q4 2025 investor presentation).
Leadership is in the midst of a fully self-funded C$11.8 billion capital plan from 2023-2027, largely focused on grid renewal and modernization, backed by predictable cash flow over the period from an expected ~6 per cent rate base compound annual growth rate and 6-8 per cent earnings per share growth, all while issuing no equity and delivering ~6 per cent average annual dividend growth.
Concurrently, the company is advancing plans to become a net-zero company by 2050, with a 30 per cent emissions reduction planned by 2030, having already reduced operations-driven greenhouse gas emissions by 41 per cent compared to 2018, underlining its already strong alignment with the green energy transition.
Steadied by 69 per cent institutional ownership and a 5-year rate regulated custom incentive rate making framework in Ontario, Hydro One represents a robust option for investors keen to increase their exposure to sustainability without sacrificing the potential for profit.
Hydro One stock (TSX:H) last traded at C$57.59, adding 94.36 per cent since 2021, outperforming the TSX by more than 20 per cent over the period.
Takeaway
Although we will rely on oil and gas in industry and everyday life for decades to come, the renewable energy transition is underway, with companies across the industry spectrum slowly realizing that environmental conservation is no longer a choice but a necessity, one where not only the planet but their bottom lines are at stake.
Consequently, any company capable of turning a profit while improving planetary health will only grow more differentiated over time, incentivizing investors to seek them out and shift their allocations as fossil fuels fade into the background.
Join the discussion: Find out what investors are saying about these renewable energy stocks on the Bullboard and make sure to explore the rest of Stockhouse’s stock forums and message boards.
Stockhouse does not provide investment advice or recommendations. All investment decisions should be made based on your own research and consultation with a registered investment professional. The issuer is solely responsible for the accuracy of the information contained herein.
For full disclaimer information, please click here.
