Convenience store stocks have surged to near record levels, with Alimentation Couche-Tard, Casey’s and Murphy USA all climbing at least 24% this year. Casey, which joined the S&P 500 four months ago, is on track for its best annual performance in 35 years with gains exceeding 54%. The rally is driven by investors seeking defensive plays amid uncertainty around the AI boom and geopolitical tensions in the Middle East, as volatile fuel prices boost margins for gas station operators. Cumberland Farms, backed by buyout firm TDR Capital, filed for an IPO seeking a valuation of approximately $9 billion. However, some analysts warn of challenges ahead if oil prices and geopolitical uncertainty eventually normalize.
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