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2 ASX shares looking cheap this week

With the S&P/ASX200 (ASX: XJO) index opening lower today, it seems like a good opportunity to scout out any cheap shares that might be presenting value for astute investors this week. As Warren Buffett says, price is what you pay, and value is what you get, so keeping your eye out for stocks showing a divergence between the two is always a worthwhile endeavour.

In this vein, here are 2 ASX shares that I think are looking cheap this week.

Zip Co Ltd (ASX: Z1P)

Zip Co shareholders would be licking their wounds this morning after shares of this buy-now, pay-later player absolutely tanked last week. It was only two weeks ago that Z1P shares were making all-time highs (topping out at $5.86), but last week alone the share price plummeted over 23%. This was due to some bearish notes coming out of brokers, as well as concerns over further regulatory risk for the sector as a whole. Z1P shares opened at $4.27 this morning but have sunk further and are hovering around the $4.24 mark at the time of writing.

Still, if you’re bullish on this payments company, it might be a good time to top up your holdings, or even open a position. Sentiment can turn quickly with this kind of company, so I would call Zip a buy for a brave investor today.

South32 Ltd (ASX: S32)

S32 shares opened this morning at $2.46 – a lot closer to their 52-week low of $2.36 than the 52-week high of $3.99. South32 has been out of favour for months due to production issues at its South African mines as well as low commodity prices.

Still, all commodities have their time in the sun, and I think South32 has a portfolio of quality assets that will continue to generate returns for the company over the long-term. S32 shares are currently offering a trailing yield of 3.85% – something else to keep in mind.

Foolish takeaway

I think these two ASX shares are offering investors some serious value in today’s market. I like South32 in particular, due to its blue-chip status, whereas Zip is your more speculative play today.

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia has no position in any of the stocks mentioned. 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.