Nadeem Kassam’s Top Picks for Feb. 13, 2026

Nadeem Kassam, chief investment strategist and portfolio manager at Marnoa Private Wealth Counsel

Focus: North American equities

Top picks: Brookfield Corp, WSP Global, Canadian Pacific Kansas City

MARKET OUTLOOK:

As we enter 2026, the fourth year of the bull market that began in 2022 (with the long-term average cycle lasting ~5 years)—the outlook remains constructively positive. We believe this view is grounded in solid fundamentals, even as risks evolve and volatility reemerges.

Economic fundamentals remain supportive. Global real GDP is projected at 3.1 per cent in both 2026 and 2027, above the recent three-year average. U.S. growth is expected to expand by approximately 2.0 to 2.4 per cent, while Canada is projected to accelerate toward 1.5 to 2.0 per cent by 2028. Resilient consumer spending, proactive fiscal stimulus, and easing monetary conditions continue to underpin this expansion.

Policy support provides a strong foundation. The lagged effects of 2025’s global rate cuts—including three Federal Reserve reductions to 3.5 to 3.75 per cent, now paused—combined with increased fiscal spending commitments and potential easing in trade tensions, should act as tailwinds for equities and risk assets in 2026. While risks persist—including renewed U.S. inflation pressures, “domestic-first” policy shifts, political influence on central banks, and a possible AI slowdown—the overall balance remains constructive.

Corporate fundamentals are improving and broadening. Market breadth expanded through 2025, with capital increasingly flowing into cyclical sectors and non-U.S. markets. That momentum is expected to continue in 2026 as earnings growth broadens beyond AI and mega-cap technology. Supported by resilient households and AI-driven productivity spillovers, public equities—particularly in the U.S., Canada, and select developed and emerging markets—remain attractive, with cyclical sectors offering compelling opportunities.

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TOP PICKS:

Brookfield Corp (BN TSX)

Brookfield Corporation is a global investment firm with one of the world’s largest pools of discretionary capital, investing in real assets across asset management, wealth solutions, and operating businesses (infrastructure, renewable power, real estate, credit).

Brookfield’s strength lies in disciplined capital allocation and opportunistic deployment during periods of dislocation. Over the past decade, the company has generated approximately 23 per cent annualized total returns, demonstrating its ability to compound capital through cycles. With over $180 billion in deployable capital, Brookfield is well-positioned should volatility increase as we expect in 2026.

The company has direct exposure to powerful secular themes. Renewable power and transition assets benefit from electrification, decarbonization, and AI-driven energy demand. Digital infrastructure exposure—including data centers and logistics—positions it to capitalize on sustained global compute and data growth.

Brookfield combines long-duration capital, operational expertise, and global scale. In a world of persistent inflation risk and capital scarcity, high-quality real assets with pricing power and durable cash flows should command premium valuations.

WSP Global (WSP TSX)

WSP Global is a leading engineering and professional services firm with approximately 90 of revenue derived from stable OECD markets. It provides services across infrastructure, environment, property, and power & energy.

Since its 2006 IPO, WSP has delivered ~30 per cent net revenue CAGR and adjusted EBITDA CAGR through strong organic growth and disciplined M&A, including over 130 acquisitions. The transformative acquisition of POWER Engineers in 2024 significantly strengthened its power and energy franchise.

Governments and corporates globally are committing trillions toward infrastructure renewal, electrification, decarbonization, and resilience. These long-duration spending commitments create sustained demand visibility.

WSP’s diversified backlog (~$16.5 billion as of Q3/2025), recurring advisory relationships, and margin expansion from integration synergies (Power and TRC acquisition) position it well for continued earnings growth. With exposure to secular infrastructure investment and energy transition, WSP offers durable growth with defensive characteristics.

Canadian Pacific Kansas City (CP TSX)

Canadian Pacific Kansas City is a North American Class I railroad providing rail freight transportation services across Canada, the United States, and Mexico. Headquartered in Calgary and founded in 2001, CPKC operates the only single-line rail network connecting all three countries, serving key industrial corridors, ports, and major metropolitan regions.

Unmatched North American Network Advantage. The KCS acquisition created the only seamless rail corridor linking Canada, the U.S., and Mexico. The network now stretches from Vancouver and Saint John to the Mexican ports of Lázaro Cárdenas and Veracruz, connecting six of the seven largest metro regions in North America. This unique footprint enhances pricing power, improves service efficiency, and positions CPKC to capture incremental cross-border trade and nearshoring flows.

Structural Growth and Diversification. CPKC is well positioned to benefit from supply chain realignment, USMCA-driven trade growth, and expanding North-South freight volumes. The transaction significantly improves diversification across geography and business mix, increasing higher-margin Merchandise exposure while adding U.S. and Mexican revenue streams, reducing earnings volatility over time.

Compelling Earnings Growth at Reasonable Valuation. Shares trade at approximately 21x forward earnings, a modest discount to the five-year average of 22.5x. With earnings projected to grow 10 to 14 per cent annually through 2025 to 2026, we see potential for sustained EPS expansion and a valuation re-rating as synergies materialize and growth broadens.