The ASX stock market is full of potential opportunities. Some have large dividend yields, some have rapidly growing earnings, and some are cheap ASX shares.
Normally, I'd highlight ASX stocks like GQG Partners Inc (ASX: GQG), Rural Funds Group (ASX: RFF) and Bailador Technology Investments Ltd (ASX: BTI), but there are a number of other opportunities to take advantage of.
The first cheap ASX share I'll highlight has fallen heavily from its recent high, while the second is a fund that aims to target high-quality shares that are trading cheaper than their underlying value. Let's look at each of those.
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Siteminder Ltd (ASX: SDR)
Siteminder describes itself as a global software leader serving the hotel industry, helping hoteliers expand and optimise distribution.
Aside from being a great business, one of the main reasons the Siteminder share price seems like an appealing cheap ASX share is because it has dropped 25% since the start of the year. That's a lot cheaper for a business that wants to deliver organic annual revenue growth in the medium-term of at least 30%.
Siteminder says one of its key success drivers has been its transaction product adoption. The transaction product uptake has increased by 26 times since FY18, at a low incremental cost.
The business has also demonstrated a lot of profit margin improvement potential. Revenue has grown at three times the growth rate of operating costs since FY22. Revenue per headcount has improved 36% since FY22, while operating costs per headcount has reduced by 25% since FY22 in real terms.
I think the cheap ASX share has great potential to deliver market-beating returns from here, particularly if it's able to continue growing profit margins and deliver revenue growth at the target 30% per year.
VanEck Morningstar Wide Moat AUD ETF (ASX: MOAT)
The other investment I want to highlight is this exchange-traded fund (ETF) which targets some of the best US shares.
It aims to find businesses that have economic moats, or competitive advantages that are expected endure for at least 20 years. This means the respective businesses could continue to make impressive profits for many years to come.
How does cheap investing fit in? Firstly, I'm calling this a cheap ASX share because it can be bought on the ASX, and it aims to invest in the competitively advantaged businesses when Morningstar believes they're trading at a price lower than their underlying value.
Some of the current businesses in the portfolio include Estee Lauder, Boeing and Applied Materials.
Impressively, this fund has delivered an average return per annum of 13.3% over the past five years, though past performance is not a guarantee of future returns.
