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3 top ASX shares to buy after today’s market selloff

The market has had a terrible start to the week and is a sea of red on Monday afternoon.

While the market is down almost 2%, a number of shares have fallen significantly further. Is this a buying opportunity?

Adairs Ltd (ASX: ADH)

The Adairs share price has dropped over 5.5% to $1.68 on Monday. This decline means that the home furnishings company’s shares are now trading at a lowly 9x earnings and offer a trailing fully franked 8% dividend. Surprisingly, its shares are trading at these low levels despite recently confirming that it is on course to achieve EBIT growth of between 4.9% and 13.7% in FY 2019. I think this makes it a bargain buy.

Appen Ltd (ASX: APX)

The Appen share price has been caught up in the tech selloff today and is down over 6% to $12.60. I believe this is a buying opportunity for investors that are prepared to hold onto the shares of global leader in the development of high-quality, human annotated datasets for machine learning and artificial intelligence for the long term. Because machine learning and artificial intelligence markets are expected to grow at a strong rate over the next decade, I expect demand for its services will grow in line with them and put it in a great position to continue its impressive earnings growth for many years to come.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

The Domino’s Pizza share price has fallen 6% to $43.54 on Monday. This means the pizza chain operator’s shares are now changing hands at 24x earnings, which I think could make them a great option for investors that are prepared to be patient and make a long-term investment. I expect shareholders to be rewarded handsomely if the company successfully delivers on its plan to nearly double the size of its store network over the next seven years.

5 stocks under $5

We hear it over and over from investors, "I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" And it's true.

And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!

*Extreme Opportunities returns as of June 5th 2020

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Appen Ltd. The Motley Fool Australia has recommended Domino's Pizza Enterprises 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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