Convenience Store Shares Surge as Investors Hedge Against Volatility

Casey’s General Stores Inc. and other major convenience store operators have seen shares surge to near-record levels in 2026. Investors are utilizing these companies as defensive value plays to hedge against market turbulence stemming from the artificial intelligence boom and geopolitical instability following a February U.S. attack on Iran and the subsequent closure of the Strait of Hormuz.

The sector is benefiting from volatile fuel prices, which allow operators to be opportunistic with pricing, alongside growth in nicotine products and foodservice. Casey's has seen a year-to-date increase of over 54% and announced a strategic plan to add 400 stores.

Despite the rally, some industry leaders maintain a cautious outlook. Murphy USA Inc. issued conservative 2026 guidance, with CEO Mindy West stating that predicting retail margins is difficult due to a crisis that "continues to ebb and flow." Similarly, Seven & i Holdings Co., Ltd. delayed the planned listing of its U.S. operations until fiscal year 2027, citing the difficulty of forecasting margins amid ongoing volatility.