MENU

Why I would buy these cheap ASX shares today

While I think that expensive shares like Nextdc Ltd (ASX: NXT) and Domino’s Pizza Enterprises Ltd. (ASX: DMP) are great options for investors despite the lofty multiples their shares trade on, not all investors are comfortable with paying such a premium.

For those investors I have picked out two of my favourite shares which I think are dirt cheap. They are as follows:

Lifehealthcare Group Ltd (ASX: LHC)

Despite reforms to the Prostheses List, this medical device company recently reiterated its full-year guidance of high single to low double digit growth in revenue and earnings in FY 2018. Considering its shares change hands at under 16x trailing earnings, I think its shares are cheap given its current growth profile. An extra bonus is the trailing partially franked 5.2% dividend that they provide.

Super Retail Group Ltd (ASX: SUL)

Year-to-date Super Retail’s shares have fallen over 19% due to weakness in the retail sector and concerns over the impact of Amazon’s launch in Australia. While Amazon does pose a long-term threat to the company, I take heart from the fact that equivalent companies in the United States have managed to compete successfully. Furthermore, management has planned for its arrival for some time and the company appears well placed to continue its growth. So at just 11x trailing earnings and providing a trailing fully franked 5.6% dividend, its shares could prove to be a bargain buy.

Concerned about Amazon's impact on Australian businesses, then buy this wonder share.

The 66,826.77% “wonder share” that shows no sign of stopping

JUST RELEASED! Check out our brand-new free report, “One Stock to Buy and One to Sell in the Age of Amazon”… revealing our #1 recommendation for the future of online retail in Australia AND the #1 stock our experts are convinced you should unload immediately

Plus, you’ll even discover one special bonus recommendation! It’s a mind-blowing 66,826.77% winner that we believe will rocket into 2018 and beyond.

Your copy of this timely new report is completely free, so don’t miss out. Discover the 66,826.77% wonder stock now. Enter your email address here to discover your brand-new FREE report.

Motley Fool contributor James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia owns shares of Super Retail Group Limited. 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 policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…

Including:

The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!