With 2025 coming to a close, many investors have already started thinking about how to position their portfolios for the new year. After a year filled with volatility, shifting interest rate expectations, and plenty of uncertainty, though, many high-quality Canadian stocks are already trading at or above their fair value heading into 2026.
That said, there are still a handful of high-quality Canadian stocks you can buy right now at compelling prices. Not only are there still some businesses trading undervalued, but with interest rates already lower than they were a year ago and widely expected to continue declining in 2026, some stocks are well positioned to benefit from a more supportive environment.
That’s why now is the perfect time to focus on finding high-quality Canadian companies you can buy at attractive valuations. When you find businesses that have already proven they can execute, generate reliable cash flow, and grow through different market conditions, buying them at a reasonable price can set you up well for the next phase of the market cycle.
So, if you’re looking for a Canadian stock that trades at a compelling valuation today and has the potential to surge in 2026, here’s why Brookfield Corporation (TSX:BN) is one of the best picks to consider right now.
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Why is Brookfield one of the best Canadian stocks to buy now?
Brookfield is one of the best Canadian stocks to buy for 2026 due to both its short and long-term potential. In fact, it’s one of the best long-term investments you can buy.
What Brookfield does incredibly well is that it’s a long-term capital compounder. It deploys capital into high-quality assets, often improves their efficiency, and then reinvests the cash flow those assets generate into new opportunities.
For example, it owns 73% of Brookfield Asset Management, which manages hundreds of billions of dollars for institutions around the world. That asset management arm continues to raise record amounts of capital, especially in areas like infrastructure, renewable power, and now AI-related infrastructure.
Furthermore, it’s also building a massive insurance business that now manages roughly $140 billion in insurance assets. This is key because insurance gives Brookfield long-term, low-cost capital that it can invest in the same real assets it already specializes in, very similar to how Berkshire Hathaway operates.
Not to mention, Brookfield also owns and operates many essential and defensive businesses directly, including infrastructure, power generation, real estate, and data-related assets. These are assets with long-term contracts, predictable cash flow, and real-world importance. People need power, data, transportation, and housing regardless of what the economy is doing.
Why Brookfield can rally in 2026
What makes Brookfield one of the best Canadian stocks to buy heading into 2026 isn’t just the quality of the business; it’s the valuation investors are getting today, combined with its long-term growth potential.
For example, with Brookfield owning critical assets like data centres, power infrastructure, and the land and utilities needed to support large-scale development, it’s in a perfect position to benefit from the massive investment pouring into AI right now.
Yet, despite everything Brookfield has going for it, the stock is still trading at a compelling valuation today.
When you strip things down, a large portion of Brookfield’s value comes from its stake in subsidiaries like Brookfield Asset Management, which are relatively straightforward for investors to value.
However, in addition to those businesses, Brookfield also owns insurance operations, private real estate assets, and a growing pool of carried interest that hasn’t yet been realized.
That’s important because over the next few years, Brookfield expects to start unlocking more of that value. As deal activity picks up, carried interest should begin flowing through more meaningfully. At the same time, as interest rates continue to decline, Brookfield’s real estate assets should also start to benefit.
On top of that, Brookfield has been actively buying back its own shares, which is a strong signal that management believes the stock is undervalued. Given Brookfield’s long history as a disciplined capital allocator, that’s not something investors should ignore.
So, while Brookfield doesn’t need a perfect environment to perform and can even benefit during tougher periods by buying assets at attractive prices, it certainly has substantial potential to rally heading into 2026. Declining interest rates, improving sentiment around real assets, and accelerating investment tied to AI are all creating meaningful tailwinds.
