In afternoon trade the S&P/ASX 200 index has followed the lead of international markets and crashed lower. At the time of writing the benchmark index is down a sizeable 2% to 6,720.7 points.
Rather than dwelling on the sea of red in front of you, I would suggest investors consider this pullback a buying opportunity. Here are three top ASX shares that I would buy today:
Aristocrat Leisure Limited (ASX: ALL)
The Aristocrat Leisure share price is down 2.5% to $33.20 on Tuesday. I think this pullback has left the gaming technology company’s shares trading at a very attractive price. Based on consensus estimates for earnings per share of ~$1.58 in FY 2020, its shares are trading at 21x estimated FY 2020 earnings today. I feel this is good value given its positive long term growth outlook thanks to the quality of its core business and the massive opportunity its digital business has.
BHP Group Ltd (ASX: BHP)
I believe this mining giant’s shares offer investors a winning combination of value and income. They are down 1.5% to $37.79 on Tuesday, which is lower than a recent price target given to them by Macquarie. The broker has an outperform rating and $40.00 price target on BHP’s shares, which implies potential upside of 5.8% over the next 12 months. In addition, Macquarie expects BHP to pay a ~$2.19 per share fully franked dividend in FY 2020. This equates to a forward dividend yield of ~5.8%. Combined, a total return of 11.6% is on offer with its shares over the next 12 months according to the broker. I agree with Macquarie and believe BHP is well-positioned to deliver on the broker’s expectations.
Webjet Limited (ASX: WEB)
The Webjet share price is trading 3% lower at $12.15 this afternoon. This decline means that the online travel agent’s shares are changing hands at a touch over 18x estimated FY 2020 earnings. I think this is very cheap for a company which has such strong long term growth potential. This is largely down to its fast-growing WebBeds business and its Rezchain blockchain solution. Together the two are playing a key role in expanding its margins and driving strong bottom line growth.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Webjet 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.