Although a number of shares have been hitting 52-week or record highs this week like Afterpay Ltd (ASX: APT), not all shares are trading close to these levels.
A few top ASX shares are still trading at levels which I think make them cheap. Here's why I would buy them:
Aristocrat Leisure Limited (ASX: ALL)
The Aristocrat Leisure share price is down 30% from its 52-week high. The catalyst for this decline has been the closure of casinos during the pandemic. As well as losing out on potential sales, the company was missing out on daily fees for its poker machines. The good news is that casinos are reopening and demand should soon pick up for its industry-leading machines. Another positive is that during the pandemic the company's digital business has been booming. It now has 7.3 million daily active users playing its games which are generating significant recurring revenues.
Sydney Airport Holdings Pty Ltd (ASX: SYD)
The Sydney Airport share price has fallen 35% from its 52-week high. This has of course been driven by the collapse in tourism because of the pandemic. However, I feel this decline has been excessive and created a buying opportunity for patient investors. Especially with tourism markets likely to start recovering in the coming months. I expect domestic tourism to begin its recovery in the near future, with international tourism to follow in 2021. Based on this, I believe the company's dividend could return to previous levels in 2022.
Telstra Corporation Ltd (ASX: TLS)
The Telstra share price is down 20% from its 52-week high, which I think is a buying opportunity for investors. This is because after years of struggles, the telco giant appears to be close to returning to growth. Especially given the early success of its T22 strategy, which is creating a much leaner operation. Combined with easing NBN headwinds and the arrival of 5G internet, I think Telstra could prove to be a great long term investment.
