While I'm not afraid to buy shares on high earnings multiples if I believe they have the potential to deliver growth that justifies the premium, not everyone can tolerate this level of risk.
Luckily for these investors I think there are a few bargains on the ASX right now after recent market weakness.
Three cheap ASX shares to buy this week are as follows:
Accent Group Ltd (ASX: AX1)
Accent Group is a retail group with a focus on the footwear market. It owns the Platypus, HYPEDC, and The Athlete's Foot retail brands and has the exclusive licences for many popular international footwear brands in Australia. At present its shares are changing hands at 17x trailing earnings, which I think is good value considering its strong start to FY 2019. At its AGM last month it advised that the first 20 weeks of FY 2019 have been "materially stronger" than expected. As a result, first half EBITDA is expected to be between 15% and 20% higher than the prior corresponding period.
Caltex Australia Limited (ASX: CTX)
This fuel retailer's share price recently hit a 52-week low of $25.95. Investors appear to have been selling its shares due to concerns that its convenience stores could be negatively impacted by high fuel prices. Pleasingly, I expect the decline in the oil price to lead to lower fuel prices, which should in turn lead to stronger sales at its convenience stores. So with its shares priced at 13x earnings, it could be an opportune time to consider an investment. Especially with its bold growth plans for its convenience segment over the medium term.
Super Retail Group Ltd (ASX: SUL)
Another cheap ASX share which I think is worth considering is Super Retail. The shares of the company behind the Rebel, Super Cheap Auto, and Macpac brands are currently changing hands at 10x earnings. This is despite all the company's segments recently reporting solid same store sales growth so far in FY 2019. Another bonus with Super Retail is that it offers a trailing fully franked 6.6% dividend at present.
