Earlier today, my colleague Lina Lim outlined 2 crazy cheap ASX 200 shares that are still in the buy zone. With the S&P/ASX 200 Index (ASX: XJO) rallying yet again today, it's becoming harder and harder to sniff out such bargains. But luckily, I've found 2 more.
With many effects of the coronavirus pandemic on our economy still unclear, ASX bargain hunting these days can be fraught, in my view. Usually, the few shares that are 'cheap' are priced that way for a good reason.
But here are the 2 ASX 200 shares I think are still cheap enough today to warrant some bargain buying and why.
BHP Group Ltd (ASX: BHP)
BHP is the ASX 200's largest miner and a truly global player on the commodities scene. Just to be clear, BHP shares are not as cheap as they were even just a few weeks ago. In fact, the BHP share price has climbed 50% since the lows we saw in March.
But here's why I'm thinking of 'The Big Australian' as cheap today. The price of iron ore (BHP's largest moneymaker) has exploded in recent weeks, even rising above US$100 per tonne last week.
We have seen BHP's fellow iron ore miner Fortescue Metals Group Limited (ASX: FMG) make new all-time highs, yet the BHP share price is still substantially below the highs we saw last year. As such, I think there is still plenty of room for BHP to run from here – and shower its shareholders with dividend income along the way.
Brickworks Limited (ASX: BKW)
Brickworks has been hit hard by the coronavirus-led crash we saw in March and has yet to approach its pre-crash highs of above $20 per share.
On one level, this is somewhat justified. Brickworks' primary source of earnings comes from the construction sector, which is one of the most cyclical industries out there. But Brickworks isn't just a brick company. It has a 'side hustle' of renting out some of its lands for rental income in a joint venture with ASX 200 cohort, Goodman Group (ASX: GMG). It also owns a large stake in Washington H. Soul Pattinson and Co. Ltd (ASX: SOL).
As such, I think this company is cheap as chips today. Its stake in Soul Patts alone is worth approximately $1.9 billion, which is pretty good considering the whole company has a market capitalisation of $2.4 billion. Brickworks also has a stellar dividend history and hasn't cut its payouts since the 1970s. As such, I think this company is a top ASX 200 buy today.
