'Attractive valuation': 2 ASX shares QVE analysts just bought

These stocks have been shocking recently, but the long-term outlook is much better than that suggests.

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We hear a lot of opinions online about which ASX shares to buy.

But how do you syphon the genuine tips from the voices that are simply filling up the vacuum?

Perhaps there is no greater endorsement for a stock from a professional than one that she or he had actually bought themselves.

They're hardly going to buy ASX shares that will endanger their own or their clients' money, are they? That would be a career killer.

As such, we note with much interest two stocks that the analysts at QVE are bullish on and have recently bought:

Two male ASX 200 analysts stand in an office looking at various computer screens showing share prices.

Image source: Getty Images

A 'resilient' business for economic turbulence

Both Amcor CDI (ASX: AMC) and Mayne Pharma Group Ltd (ASX: MYX) shares are in a funk at the moment.

The Mayne stock price has dropped almost 9% since 8 May, while Amcor has shed 8.8% of its valuation since 2 May.

Yet the QVE team has taken the opportunity to buy more of these stocks.

In a memo to clients, it explained that Amcor shares plunged in May after a third-quarter update indicated "customer destocking coming out of elevated inventories during COVID saw lower volumes across its Rigids and Flexibles divisions".

But that shouldn't deter long-term investors.

"While disappointing, the defensive nature of packaging demand means Amcor should be relatively resilient through the impending slowdown in economic activity, while the valuation remains attractive."

Amcor shares have largely gone sideways in recent times, trading about 7% lower than they did five years ago.

'Strong cash position and low valuation'

Similarly, Mayne Pharma stocks also plummeted last month upon management announcing "the current year's profit would be below expectations due to an increase in marketing costs".

This is despite "improved sales performances" for its flagship female health drug Nextellis and "a recovery in earnings of its dermatology division".

Mayne shares have been a bit of a disaster in recent years, losing almost 80% of its value over the past five years.

The pharmaceutical stock is now trading at a price-to-sales ratio of just 1, which the directors are apparently cognisant of.

"Given its strong cash position and low valuation, the board also announced an on-market buyback."

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Amcor Plc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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