2 Canadian Stocks Positioned to Surge as 2026 Unfolds

Alimentation Couche-Tard Inc (TSX:ATD) stock is down from its peak but could soar in the recovery.

Key Points
  • The stock market is currently pricey, but scattered opportunities exist.
  • Brookfield Asset Management appears poised to recover from a recent selloff.
  • Alimentation Couche-Tard has many characteristics that should lend to success in this environment.

As 2026 unfolds, we are seeing some clear trends beginning to emerge. Energy prices are rising, global trade is slowing, and AI is gobbling up investor capital. These and other trends may present certain opportunities for enterprising investors in the year ahead.

That’s not to say that you should necessarily run out and invest in the latest “hot” theme, though. To the contrary, buying into such themes at their all-time highs often produces poor results. It’s by investing prudently over the long term that you get the best results. Often this involves ignoring “hot trends” and buying what has the potential to do well in both bull markets and bear markets. In this article, I will explore two stocks that have the potential to rise as 2026 continues unfolding.

Canada national flag waving in wind on clear day

Source: Getty Images

Brookfield Asset Management

Brookfield Asset Management (TSX: BAM) is a Canadian asset management company whose shares have taken a beating over the last year. There was no real “catalyst” or news event that took the shares lower. Investors appear to have been reacting to the stock’s valuation, which had gotten steep following BAM’s rise all the way to $86 back in 2025. At that level, BAM was trading at 40 times earnings. It’s not surprising that the stock has given up some of the gains since then, as 40 times earnings is a very steep valuation.

In 2026, BAM has many catalysts that could take its stock higher. These include the following:

  • $100 billion worth of carry-eligible capital has been recently deployed. This money was invested over the last year. It will soon start generating fee-related income, which will likely take Brookfield Asset Management’s earnings higher than was reported last quarter.
  • $79 billion worth of carry eligible capital is not yet invested. This money will likely be invested in the next year or so, providing further growth in fee-related income.

Looking at these factors side by side, it appears that Brookfield Asset Management has the potential to grow a lot in the next 12 months.

Alimentation Couche-Tard

Alimentation Couche-Tard (TSX: ATD) is another TSX stock that has been out of favour for the last few years. It hit its all-time high price of $86 way back in February of 2024. Since then, the stock has been mostly trending downward. The stock fell in price throughout 2024 and 2025. This year, it started rising, as the company makes about half its money from fuel sales. Fuel prices are rising this year due to the War in Iran and the closure of the Strait of Hormuz. This fact is lifting gasoline prices and stocks like ATD along with them.

Still, ATD probably isn’t fully valued yet. The current stock prices appear not to have fully priced in the impact of the oil price rise we’ve been seeing this year. Most oil stocks are up 50% year to date. Alimentation Couche-Tard, which is 50% an “oil stock” by earnings mix, is up only 4.5%. $185 per litre of gasoline should lift ATD’s earnings when they are reported next month. Overall, I’d be comfortable holding Alimentation Couche-Tard stock today.

Fool contributor Andrew Button has positions in Brookfield Asset Management. The Motley Fool has positions in and recommends Alimentation Couche-Tard. The Motley Fool recommends Brookfield Asset Management. The Motley Fool has a disclosure policy.

More on Investing

Group of people in a line at an ATM waiting to make a cash withdrawal
Dividend Stocks

The TFSA Withdrawal Rule Every Canadian Should Know

The account is a much better place to invest long term than to make frequent trades and withdrawals.

Read more »

scanning a package shipping label for ecommerce delivery
Stocks for Beginners

The 2 Canadian Stocks I’d Load Into My Portfolio Without Hesitation

CCL Industries continues to pair earnings growth with strong cash generation, while Restaurant Brands is benefiting from improving momentum at…

Read more »

man shops at grocery store
Dividend Stocks

The Best Canadian Stocks for Conservative Investors Right Now

These two Canadian stocks combine durable businesses, growing earnings, and shareholder returns.

Read more »

Three children jump on an outdoor trampoline
Dividend Stocks

2 Solid Dividend Stocks Down 20 Percent to Buy Before They Bounce Back

These Canadian companies have been increasing their dividends year after year, while their stocks have pulled back from recent highs.

Read more »

happy woman throws cash
Dividend Stocks

The Ideal TFSA Stock: A 5.9% Yield-Paying Constant Cash

Enbridge’s predictable cash flows, substantial growth pipeline, and long history of dividend increases underpin its long-term investment appeal for TFSA…

Read more »

woman gazes forward out window to future
Dividend Stocks

Dividend Income in Retirement: What Could Go Wrong?

Dividend investing is a proven way to create income in retirement but you must know the risks you need to…

Read more »

The TFSA is a powerful savings vehicle for Canadians who are saving for retirement.
Dividend Stocks

A 5% Monthly Payer I’d Buy for My TFSA: About $100 a Month on $24,000

Canada’s largest residential landlord offers a high yield, reliable monthly income, and a tax-sheltered foundation for TFSA investors.

Read more »

Energy Stocks

Why Canadians Love Dividend Stocks (and What Beginners Should Know)

Canadian stocks like Enbridge are prime examples of the many benefits of dividend stocks, such as reliability and income.

Read more »