Although today's market selloff has been disappointing, every cloud has a silver lining.
The silver lining on today's selloff is that it has pulled down some quality ASX shares to attractive levels.
Two beaten down ASX 200 shares that I would buy are listed below. Here's why I think today's selloff has created a buying opportunity:
Appen Ltd (ASX: APX)
The Appen share price ended the day 7% lower on Friday. This latest decline means that the shares of the leading developer of high-quality, human annotated datasets for machine learning and artificial intelligence (AI) markets are now down 25% from their 52-week high. And while this still means they trade at a premium of 37x estimated FY 2021 earnings, I believe this is great value given its very positive long term growth prospects.
This is because spending on machine learning and AI is expected to grow materially over the next decade. I believe this puts Appen in a perfect position to grow its earnings at a strong rate during the 2020s. Overall, I feel this could make Appen shares market-beaters over the long term.
CSL Limited (ASX: CSL)
The CSL share price was out of form and tumbled 4% lower to $279.05 on Friday. As a result, the biopharmaceutical company's shares are now trading approximately 19% below their 52-week high. I think this is a buying opportunity for investors that are looking for long term investment options.
I believe CSL is one of the most outstanding shares on the Australian share market and capable of growing its earnings at a solid rate over the next decade. Especially given the quality of its therapies and vaccines, its growing plasma collection network, and its lucrative R&D pipeline. The latter has therapies under development which have the potential to generate billions of dollars in sales in the future if they make it to market.
