The Motley Fool

3 cheap ASX shares for value investors to buy today

I’m a big fan of popular tech shares Altium Limited (ASX: ALU) and Appen Ltd (ASX: APX) and believe their strong long-term growth potential justifies the premium their shares trade at today.

However, I can understand why some investors with a lower tolerance for risk would not be comfortable with this premium.

So, for those investors, here are three shares that I think look cheap at current levels:

Adairs Ltd (ASX: ADH)

This homewares retailer’s shares are currently changing hands at just 10x trailing earnings. I think this makes them dirt cheap given its solid start to FY 2019 in spite of the housing market weakness. In February Adairs posted a 10.6% increase in half year sales to $164.4 million and a 9.1% lift in net profit after tax to $14.9 million. This solid half was driven by strong online sales growth and a 7.3% increase in like-for-like sales. Pleasingly, during the first seven weeks of the second half like-for-like sales were up 7.1%. I believe this has positioned it well to deliver a solid full year result in FY 2019. Another bonus is that its shares provide a trailing fully franked 7.7% dividend yield.

Helloworld Travel Ltd (ASX: HLO)

Helloworld is an integrated travel company which I believe is trading at a very attractive level given its current growth profile. Its shares were sold off after it was caught up in a political scandal last month, leaving them trading at 16x trailing earnings. I feel this is cheap considering management expects to deliver full year EBITDA growth of between 16.5% to 22.7% in FY 2019.

Super Retail Group Ltd (ASX: SUL)

Another retail share which is trading at a level which I believe is dirt cheap is the company behind brands such as Macpac, Rebel, and Super Cheap Auto. At present its shares are changing hands at 10.5x trailing earnings despite it delivering a solid 8.9% increase in half year normalised net profit after tax to $81.6 million last month. And as with Adairs, the company has had a strong start to FY 2019, reporting like for like sales growth of 4% for the first six weeks of the second half. Its shares also provide an above average fully franked dividend yield of 6.4% on a trailing basis.

Looking for more investment ideas? Then don't miss out on these buy rated ASX shares.

Top 3 ASX Blue Chips To Buy For 2019

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked...

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool’s in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool’s Top 3 Blue Chip Stocks for 2019."

Each one pays a fully franked dividend. The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies move – we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Altium, Appen Ltd, Helloworld Limited, and 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 Scott Phillips.

NEW. Five Cheap and Good Stocks to Buy in 2019…

Our Motley Fool experts have just released a brand new FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.8% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.