Stocks of some of the best companies, at times, are hit hard due to the shortsightedness of the markets and that is when the biggest opportunities for the investors arise. These companies are capable of dealing with both macro and micro challenges that markets throw-up in the long run. The current stock price of two of such companies is now at a record low offering the investors a great bargain.
Brookfield Infrastructure Partners (NYSE:BIP)
Brookfield Infrastructure Partners is a company which specializes in buying assets in sectors such as transport, telecommunications, utilities and energy when their prices are really low and then resell them when market prices are higher thus generating enough cash flow to invest in better alternatives.
The company has shown record operational numbers in the past 12 months and yet, its stock is still down to 11% as of today. This could be due to the market fears that the rising interest rates may have a negative impact on the company’s margins. However, the company has a negligible cost of debt and is planning to invest $1 billion in the coming 6 months, especially in the data infrastructure field, which has a great potential of reaping benefits. With its stocks now trading at as low as $40.05, this could be the best bargain for the long-term investors.
Western Digital (NASDAQ:WDC):
Western Digital, a company that specializes in computer storage hardware, hasn’t performed great this year. As a result, the company had to lose 20% of its share value and 40% of the total value that it set as an all time high this time last year.
However, the company is very far from becoming a failing business. In the last 12 months it has generated overall revenue of $3.4 billion or $11.16 per share in the form of free cash flow. In other words, Western Digital Company is just like a machine that keeps generating cash. With its stocks now trading at a 12 month low of $65.06, long-term investors couldn’t have asked for a better bargain.