What to Expect From Brookfield Stock in 2026
Alex Smith
4 days ago
2026 has taken a brutal turn, and things could intensify as we head into March. As such, investors should fasten their seatbelts and have a list of quality names theyâd be willing to pick up on the way down. You donât need to be a hero by trying to catch a falling knife. But when it comes to premier market darlings that are being punished for no good reason, I think there are gifts to be had courtesy of Mr. Market.
Either way, investors should be incremental and not use all their dry powder at once. If a 3% market dip turns into a 30% one, will you be ready for the bigger bargains? Itâs like Black Friday passing with mild deals, only to pave the way for a Boxing Day blowout with everything marked down so much more.
Indeed, Black Fridays can be tempting. But never forget that thereâs the possibility of better deals coming on Cyber Monday, Boxing Day, or even Boxing Week! The more investors treat stocks like merchandise to be bought on sale, the better. The key is to buy quality, even if it means a mild markdown, rather than something thatâs 50% off but is broken, outdated, or just plain unreliable.
Brookfield Corp. has been wobbly amid market volatility, but donât count it out yet!
In any case, Brookfield Corp. (TSX:BN) shares look like a tempting buy this February while shares are in a correction (down more than 10% from highs). And while the discount could get steeper, especially since there seems to be what I view as a quadruple-top technical pattern that could entail a move closer to the $50âÂÂ53 range over the near term, I certainly wouldnât be afraid to stash the name on a radar, just in case the market-wide sell-off starts getting really nasty.
With cryptocurrencies selling off viciously alongside the precious metals, letâs just say I wouldnât be surprised if some investors ran into liquidity issues, forcing them to dump stocks to raise a bit of capital. Indeed, if there is a bit of a liquidity shortage, the latest sell-off might just drag down just about everything, including the quality names that probably donât deserve to take a hit to the chin.
Right now, the asset management plays are under quite a bit of pressure. And Brookfield stock has joined the move lower, even though itâs more about ârealâ alternative assets that generate cash flows, rather than private equity software investments. Indeed, software has been a sore spot in the markets over the past several months. With new AI tools coming to be, thereâs fear that softwareâs value could implode like a paper bag.
Brookfield is a safer play on AI
The good news is that Brookfield is a great way to shelter from such an AI-facing storm in software. Arguably, itâs a great way to play the other side of the trade, given the firmâs commitment to investing in the future of AI infrastructure. Weâre talking about the real estate, utilities, power, cooling, and all sort, rather than the expensive hardware (GPUs, CPUs, storage drives, server racks, networking cables, and, of course, RAM) that goes into the construction of a data centre. Either way, I view Brookfield as playing the âsafeâ side of the AI data centre boom, and, with that, I do think the name is getting way too cheap to ignore.
Whether weâre talking about the $100 billion (yes, thatâs with a âbâ) AI infrastructure program, the nuclear and renewable assets, growing demand for physical cash-flow-generative assets (which could boost assets under management) and fees collected, or the runway in Japan to increase its âfloatâ under Brookfield Wealth Solutions, BN stock has a lot of tailwinds at its back in 2026 and beyond.
As such, I think itâs a fantastic buy into weakness, but in small, measured nibbles. It not only has superb management, but it also has the capital (float from insurance and capital from managed assets) to seize opportunities (especially in AI) as they arise. All things considered, Brookfield has a great setup, but the near term could prove choppy.
The post What to Expect From Brookfield Stock in 2026 appeared first on The Motley Fool Canada.
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Fool contributor Joey Frenette has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Brookfield. The Motley Fool recommends Brookfield Corporation. The Motley Fool has a disclosure policy.
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