2 cheap ASX shares near their lows I'm thinking of buying now

These stocks are so cheap that I'm thinking about buying them

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I'm a big fan of buying cheap ASX shares when it seems like they have been oversold.

We don't know what share prices will do next, but investing in a good business at a much cheaper valuation can give us a good margin of safety.

One of the most important elements of buying beaten-up stocks is choosing ones with a fair chance of rebounding in the future. Ideally, we don't want to choose stocks that will keep going down forever and have no hope of a turnaround.

I like stocks that are looking to grow their operations, even during uncertain times such as now. The two ASX shares below look cheap to me.

Accent Group Ltd (ASX: AX1)

As we can see on the chart below, the Accent share price has declined by around 25% since April 2023.

I think that's a large and appealing decline. Retail conditions have definitely weakened over the last couple of years, but I don't believe it's going to be difficult for Accent and other ASX retail shares forever.

Retailers regularly go through economic cycles as households tighten (and sometimes loosen) their financial belts. That's why I think periods of volatility can be an opportunity to invest in an ASX stock like this.

This business acts as a distributor for a number of global shoe brands including Ugg, Skechers, Henleys, Hoka and Vans. It also owns some of its own businesses including The Athlete's Foot, Glue Store, Stylerunner, Platypus and Nude Lucy.

The company planned to open at least 20 new stores in the second half of FY24 across both its core banners and new businesses. Further store openings in future years could be helpful for scale benefits. It's also working on growing its digital sales.

Why is it a cheap ASX share? According to the estimates on Commsec, it's trading at just 11x FY26's estimated earnings. It is also projected to pay a grossed-up dividend yield of 11.2% in FY26.

Centuria Industrial REIT (ASX: CIP)

This is the largest Australian-based pure real estate investment trust (REIT) focused on industrial properties. It's benefiting from the limited availability of commercial property in our capital city locations. Strong rental growth is helping offset the pain of higher interest rates.

It recently acquired another data centre for its portfolio for $39 million, which is leased to Fujitsu. Data centres now make up 12% of the REIT's portfolio, worth $456 million.

Centuria Industrial said demand for AI and cloud-based solutions is driving data centre growth as businesses and consumers continue to rapidly adopt these technologies.

Is it a cheap ASX share? The business reported it had net tangible assets (NTA) of $3.89 at 31 December 2023. With the Centuria Industrial REIT share price falling by 15% since mid-March 2024, it's now trading at a 22% discount to the December 2023 NTA.

Motley Fool contributor Tristan Harrison has positions in Accent Group. 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 recommended Accent Group. 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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