This year has been a bit more volatile than most of us had probably hoped. Wars that we thought might end soon are flaring back up. Tariff-driven trade disputes have arisen. And on top of all that, inflation has continued to stick around, which has kept interest rates high. These factors have caused stocks to gyrate, making it tough to invest with much confidence.
Despite all this uncertainty, there are a few stocks I wouldn't hesitate to buy in the current environment. Topping that list are Alphabet (GOOG 1.68%)(GOOGL 1.66%), Brookfield Infrastructure (BIP 2.62%)(BIPC 1.32%), and Prologis (PLD 1.92%). Given their combination of financial strength, visible growth, and reasonable valuations, I wouldn't hesitate to invest $1,000 in any one of them right now.
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A leading tech titan for a value price
Alphabet is one of the world's largest technology companies. From its ubiquitous Google search engine to its popular YouTube platform, cloud computing, and beyond, Alphabet has an expansive business.
The tech titan generates massive revenues (over $90 billion in the first quarter) and prodigious profits (nearly $35 billion last quarter). It's growing quickly despite its enormous size (its revenue rose 12% last quarter, while its net income soared 46%). Its robust profitability enables it to invest heavily in expanding its business while returning boatloads of cash to shareholders.
NASDAQ: GOOGL
Key Data Points
On the growth front, Alphabet is going all-in on artificial intelligence (AI). It rolled out Gemini 2.5 in the first quarter, its most intelligent AI model. The company is leveraging the power of AI to boost its Google search business through new features, such as AI overviews. It's also providing customers with AI infrastructure and generative AI solutions. Meanwhile, it's returning more cash to investors by recently hiking its dividend by 5% and approving a new $70 billion share repurchase authorization.
Despite its robust growth, Alphabet trades at a relatively attractive valuation these days. With a forward price-to-earnings ratio of around 18.5 times, it trades at a discount to the broader market index. The S&P 500 trades at 22.5 times forward earnings, while the Nasdaq-100 fetches 28 times forward earnings. Alphabet's combination of growth and value is hard to beat.
Growth, income, and value
Leading global infrastructure operator Brookfield Infrastructure also offers a compelling combination of growth and value. The company expects to grow its funds from operations (FFO) by more than 10% per share this year. It believes it can continue growing at a more than 10% annual rate in the future, driven by inflation-linked rate increases, volume growth, expansion projects (notably data centers and semiconductor fabrication plants), and acquisitions. The company has already lined up a couple of deals this year to help bolster its growth rate.
NYSE: BIPC
Key Data Points
Brookfield Infrastructure's outlook, implying that it will deliver more than 10% FFO per share growth this year, suggests it will generate at least $3.43 per share in FFO this year. With the stock recently trading at less than $41.50 per share, Brookfield sells for around 12 times its FFO.
That dirt cheap valuation is a big reason why Brookfield offers such an attractive dividend yield. At over 4%, it's more than double the S&P 500's dividend yield. The company's combination of growth and income at a value price puts it in a strong position to produce robust total returns from here.
Strong growth amid headwinds
Leading industrial real estate investment trust (REIT) Prologis has an extensive record of delivering above-average growth. The company has grown its core FFO at a 12% compound annual rate over the past five years, outpacing the S&P 500's 9% rate. That has also supported faster compound annual dividend growth during that period (13% versus 5% for the S&P 500).
NYSE: PLD
Key Data Points
While the industrial real estate market is currently facing some headwinds due to all the market uncertainty, Prologis' leadership position has enabled it to continue thriving. It delivered 10.9% core FFO per share growth during the quarter, driven by strong leasing demand for its properties, new build-to-suit projects with strategic customers, and its strategic investments to capitalize on the growing demand for data centers to support AI and other catalysts.
Prologis expects the industry's current headwinds to eventually fade. Limited new supply of warehouses and high construction costs should drive continued rent growth.
Meanwhile, the REIT has a fortress-like balance sheet, giving it the flexibility to pounce on new investment opportunities as they arise (acquisitions and development projects). These catalysts should continue driving above-average growth. Add in its attractive valuation (shares are nearly 20% below their 52-week high) and dividend yield (3.8%), and Prologis is in a strong position to produce robust total returns for its investors.
Buy with confidence
Alphabet, Brookfield Infrastructure, and Prologis have excellent track records of growing shareholder value. The companies currently have lots of growth ahead. Despite that, they trade at very reasonable valuations these days. Their combination of growth, financial strength, and value is why I wouldn't hesitate to invest another $1,000 into any one of them right now.
