3 cheap shares that I would buy today

While I think that top shares such as CSL Limited (ASX: CSL) and Cochlear Limited (ASX: COH) are about fair value at current prices, for many investors the lofty multiples their respective shares trade on are too much.

In light of this, I have picked out three shares which I think are trading at cheap levels right now and well worth considering as an investment. They are as follows:

Collection House Limited (ASX: CLH)

This receivable management company has fallen out of favour with investors after a tough few years, but there are signs that it has successfully turned its performance around. The company recently provided full year earnings per share guidance for FY 2018 of between 18 cents and 18.5 cents. This will be an increase of between 23% and 24% year-on-year. Despite this strong growth, Collection House’s shares are still only changing hands at under 9x estimated full year earnings.

Paragon Care Ltd. (ASX: PGC)

Paragon Care is a provider of integrated services to the health and aged care markets in Australia. The company has been on a bit of an acquisition spree of late following a $69.8 million capital raising. I believe this has positioned it perfectly to capture the growing demand for its services in the two key markets it operates in. If everything goes to plan this should lead to strong earnings growth in FY 2018 and beyond. Which could make Paragon Care an attractive option at just 13x trailing earnings.

Super Retail Group Ltd (ASX: SUL)

This retail conglomerate’s shares are currently trading at under 12x trailing earnings. I think this undemanding valuation and its generous trailing fully franked 5.6% dividend make it a great option for investors. Especially if the recent acquisition of Macpac ends up turning around the company’s underperforming Leisure segment.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Super Retail Group Limited. The Motley Fool Australia has recommended Cochlear Ltd. and Paragon Care 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 Scott Phillips.

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