With the S&P/ASX200 (ASX: XJO) index opening lower today and many ASX shares shedding some value this morning, I think it’s a good time to think about where any extra deployments of cash in today’s market would be most useful.
Buying shares on the cheap is one of the upsides of a falling market, so here’s how I would spend $10,000 on ASX200 shares today.
Medibank Private Ltd (ASX: MPL)
Medibank private shares are in freefall today – down 8.38% at the time of writing to $3.12 per share, a long way from the $3.40 level MPL shares closed at yesterday. The catalyst for this drop was an update released by the company this morning that revised FY20 guidance lower, as a result of higher-than-expected insurance claims in FY19, a trend that the company expects will continue into this financial year.
Still, I think at these levels, Medibank is showing some value. MPL shares now offer a starting dividend yield of 4.21% at today’s prices and I think that we are seeing some short-term problems that will not affect the long-term prospects of this business.
Afterpay Touch Group Ltd (ASX: APT)
Afterpay is another stock getting hammered today – down 2.73% at the time of writing at $26.39 a share. It appears market sentiment has decisively shifted on this former high-flyer after a bearish broker note from UBS some weeks ago declared APT shares overvalued. Afterpay has now lost 30% of its value over the past month, leading me to think it might be a good time to buy if you’re bullish on the BNPL space.
Although Afterpay is yet to become profitable, there is still a lot to like with its UK and US expansions going gangbusters. I think Afterpay is a buy for the brave for these reasons today.
Coca-Cola Amatil Ltd (ASX: CCL)
Breaking the trend, Coca-Cola Amatil shares are trading 2.43% higher today at $10.34, despite no major news coming out of the company. I think Coca-Cola is a strong, defensive company that can play a role in any portfolio – with a 4.55% dividend yield to boot.
The soft-drink industry has been struggling in recent years due to consumer shifts away from sugary drinks. However, I think the success of the Coke No Sugar product, as well as the massive range of healthy alternatives (coconut water, anyone?) the company has been expanding into will prove to be successful in the long-term. Thus, I think Coke shares are looking good on today’s prices.
I think these 3 shares are amongst the better deals you could get on the share market today. All are robust businesses showing some value, so if you’ve got $10,000 burning a hole in your pocket, now you’ve got some ideas about what to do with it.
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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 AFTERPAY T 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.