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.

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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.

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