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2 ASX shares looking cheap this week

With the ASX opening slightly higher today, it seems like ‘just another week’ on the stock market. But, as the world adjusts to the biggest spike in oil prices in history, we are again reminded that volatility is ever-present. So here are 2 ASX shares that I think are looking cheap this week, and might just be worth checking out – especially if bargain-hunting is a favourite past time of yours!

Appen Ltd (ASX: APX)

The gloss has well and truly worn off for this former ASX tech darling. Appen shares opened at $21.56 this morning and have fallen a further 4.40% to $20.88 at the time of writing. This price is nearly 35% lower than Appen’s all-time high of $32, which is where the shares were sitting just six weeks ago. While I do think that Appen shares were definitely overvalued at $32 and are now more fairly priced, the real opportunity here is if positive sentiment returns this company (in my opinion). As the current share price of Afterpay Touch Group Ltd (ASX: APT) and WiseTech Global Ltd (ASX: WTC) show, sentiment is often everything for growth stocks.

Therefore, if Appen can overcome concerns over its Figure Eight acquisition (and maybe even throw in a dividend increase at the next opportunity), I think that we could see significant upside in APX shares from here.

Telstra Corporation Ltd (ASX: TLS)

Telstra shares are also looking cheap today as the telco’s share price consolidates under the $3.60 level at $3.56 at the time of writing. Telstra briefly climbed over the $4 mark back in early August, but the share price has been trending downwards ever since the company told the market in its 2019 financial year results that it would take longer than expected to ride out the NBN pain in its earnings, and cut its final dividend to 8 cents a share.

Also adding to the pressure is the impending Federal Court decision over rivals TPG Telecom Ltd (ASX: TPM) and Vodafone’s plans to merge. A larger competitor in the telco space isn’t exactly a positive for the market leader.

Still, I think there is upside for Telstra at these levels. As the roll-out of 5G technology ramps up, Telstra stands to benefit from its heavy investment in this area, as well as its continued reputation as having the best mobile network in the country.

Foolish takeaway

I think both of these companies are presenting buying opportunities this week on the ASX. I think Telstra is a great buy at today’s prices, especially for income. But Appen is looking cheap compared with its WAAAX siblings as well, so the choice is yours!

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Sebastian Bowen owns shares of Telstra Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO and WiseTech Global. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of Appen Ltd. 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.