The Transurban Group (ASX: TCL) share price slumped 3.34% lower last week, but is the Aussie infrastructure group a secret buy?
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What does Transurban actually do?
Transurban is entrenched inside the ASX 50 with a market capitalisation of $38.8 billion. But despite its size, the Aussie infrastructure giant isn't talked about nearly as much as some of its ASX 200 peers.
Transurban operates 18 roads across Australia and North America. It also has seven major projects scheduled for completion over the next five years. I think this is one of the key reasons it could be a secret buy right now.
The Transurban share price is down 4.43% for the year. That means it's still outperforming the S&P/ASX 200 Index (ASX: XJO) which has slumped 12.92% in 2020.
I like the company's diversified earnings which are spread across Australia, Canada and the United States. This provides some operational diversity across each country as well as different currency exposure.
I think given the uncertainty right now, this could be a real advantage. Especially if restrictions continue to ease across the globe.
More people out and about is good for toll road operators. More traffic means more earnings and, most likely, a higher share price. Particularly since many people may be unwilling to use public transport due to fears surrounding coronavirus so are more reliant on their cars.
The Transurban share price has still fallen lower this year despite what I see as some strong potential tailwinds.
Foolish takeaway
While some other ASX 200 shares have been in the spotlight, it feels to me like Transurban is being largely ignored.
That could mean the Aussie group is a secret bargain. Broad currency exposure, diversified operations and more potential traffic in the next 12 to 18 months seem like big positives.
No one knows whether the Transurban share price is set to rocket higher. However, I think the Aussie company could be a secret bargain ahead of its August earnings result.
