4 discounted ASX stocks for your weekend

Fairfax Media Limited (ASX:FXJ), Orica Ltd (ASX:ORI), CSR Limited (ASX:CSR) and Crown Resorts Ltd ASX:CWN) could all be worth researching.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

For those who have ever studied a finance textbook it is likely they will have come across a theory called the efficient market hypothesis (EMH).

While many investors have discredited the EMH it still remains popular amongst some sections of the finance community and certainly there are assumptions used which are worth being aware of and acknowledging.

One way that some investors look to beat the market while utilising some of the principles that emanate from the EMH is by searching for 'relative value'.  By utilising this approach, an investor is effectively acknowledging that on average the market has got the price and value right, however, there could be pockets of value.

Recently, broker Goldman Sachs produced a table which identified large companies that were trading at significant price-to-earnings multiple discounts to their respective sector average.

If you're wondering how to spend your weekend, consider taking a closer look at these 4 relative value stocks –

  • From the media sector: Fairfax Media Limited (ASX: FXJ) is trading at a 36% discount
  • From the materials sector: Orica Ltd (ASX: ORI) is trading at a 34% discount
  • From the building materials sector: CSR Limited (ASX: CSR) is trading at a 29% discount
  • From the gaming sector: Crown Resorts Ltd (ASX: CWN) is trading at a 26% discount
Motley Fool contributor Tim McArthur does not own shares in any of the companies mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policyThis article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.  

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »