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6 top ASX stocks looking cheap this week

Go on, admit it, regardless of how long you’ve been investing or how successful you’ve been in the past, it’s always incredibly tough to see your favourite ASX stock fall in price.

Investors in some of Australia’s largest and most well-known companies had to withstand one of these tough times last week when a renewed fall in the iron ore and oil price, as well as a plethora of analyst downgrades following reporting season, resulted in massive share price falls that could entice bargain hunters to take a punt.

Bargain Stocks

Blue-chip and large cap stocks that suffered last week were:

Fortescue Metals Group Limited (ASX: FMG) dropped 14% on lower iron ore prices.

Northern Star Resources Ltd (ASX: NST) plunged 13% and Newcrest Mining Limited (ASX: NCM) fell 12% as a rising dollar combined with a falling gold price cut margins.

G8 Education Ltd (ASX: GEM) sunk another 12% to just $3.80 as analysts downgraded the company’s profit forecasts.

Liquefied Natural Gas Ltd (ASX: LNG) pulled back 11% after its recent surge above $3.50.

CSR Limited (ASX: CSR) dropped another 11% to finish at $3.83 after hitting $4.40 just over a week ago.

Big Risks

The one attribute that the six stocks above have in common is their high-risk nature. Iron ore, gas and gold producers are at the mercy of the global commodities market, while the outlook for CSR is far from certain.

G8 Education is far and away my favourite, but before you do too much research, you should know Scott Phillips, lead investment advisor of Motley Fool Share Advisor, has just announced his #1 stock pick of 2015 and I think it’s an even better buy than G8 right now.

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Motley Fool contributor Andrew Mudie owns shares in Fortescue. You can find Andrew on Twitter @andrewmudie

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