Is Brookfield Stock a Buy, Sell, or Hold for 2027?

Is Brookfield stock a buy, sell or hold for 2027? Explore its latest earnings, insurance expansion and potential for long-term growth.

Key Points
  • Brookfield Corporation offers diverse investment exposure across sectors like infrastructure, energy, real estate, and private equity, providing multiple earnings streams.
  • The company recently reported a 16% rise in distributable earnings for the third quarter, highlighting strength in asset management and wealth solutions.
  • Despite a recent dip in share price, Brookfield's long-term potential remains strong, making it an appealing option for patient, long-term investors.

Most Canadian investors are aware of Brookfield Corporation (TSX: BN) and at least a few of the other Brookfield tickers on the market (more on that in a moment). As we move into the last part of the year and toward 2027, it’s a good time to ask whether Brookfield stock is a buy, sell or hold right now.

The answer to that really depends on what investors expect. Brookfield is the type of business that can compound earnings over time, given some patience. That also means that growing dividend income isn’t high on the priority list of Brookfield.

In fact, Brookfield’s dividend yield is just 0.66%. In other words, investors are relying on earnings growth to support potential share price appreciation.

A series of red ladders lead to successively higher levels

Source: Getty Images

What makes Brookfield stock worth considering?

Brookfield operates across asset management, wealth solutions and operating businesses. That gives investors exposure to infrastructure, energy, real estate and private equity.

That’s where the myriad of other Brookfield tickers come into play. In addition to the broader corporation, there are also Brookfield listings for asset management, as well as infrastructure and renewable energy, among others.

That being said, owning the Brookfield Corporation listing does provide investors with exposure to those businesses.

For investors, this means that Brookfield has several ways from which it can generate earnings. Managing capital produces fees, while its operating businesses provide cash distributions. Finally, the insurance operations invest assets held against long-term obligations.

This also allows Brookfield to reinvest available cash into new opportunities or repurchase shares.

Fresh earnings momentum heading into 2027

Brookfield provided results for the third quarter this week that showed progress made across the business. Distributable earnings reached US$0.73 per share, up 16% from the same period last year.

Brookfield uses distributable earnings to show what it can pay out or reinvest. It’s different from its reported net income.

In asset management, Brookfield saw fee-related earnings increase by 15% in the most recent quarter, while the business raised US$25 billion.

Wealth Solutions reported that distributable earnings increased 22%. The acquisition of Just Group helped that performance and was reflected in that bump.

The company ended the quarter with US$207 billion of deployable capital across its platform. That includes cash, financial assets and corporate liquidity. That includes US$5.4 billion of corporate liquidity, alongside cash, financial assets and undrawn credit lines, and uncalled private fund commitments.

Is Brookfield a buy, sell or hold?

As of the time of writing, Brookfield trades at just under $60. Despite the strong quarter, Brookfield trades down nearly 8% over the trailing 12-month period.

For investors looking to hold beyond the current volatile market, Brookfield is a long-term holding with plenty of long-term potential. The latest results showed continued earnings growth, giving patient investors a reason to consider building a position over time.

Existing shareholders also have a sound reason to hold given the recent results.

The key is patience. Brookfield’s earnings can grow without its share price immediately following.

Buy it, hold it and wait for it to grow.

Fool contributor Demetris Afxentiou has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Brookfield Corporation. The Motley Fool has a disclosure policy.

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