Judging by some of the bargains on offer on the local share market right now, it appears as though Christmas has come early this year.
Three cheap shares which I would buy this Christmas are listed below. Here's why I like them:
Accent Group Ltd (ASX: AX1)
The shares of Accent Group, formerly known as RCG Corporation, are priced at just 11x trailing earnings. I think this is cheap given the footwear retailer's positive growth outlook and the strength of its licensed brands. A significant portion of its revenue is derived from these brands which Accent has the exclusive rights to in Australia. Accent's shares also provide a generous trailing fully franked 7.3% dividend.
Greencross Limited (ASX: GXL)
Although the shares of this integrated pet care company have rallied strongly over the last month, they still change hands at just 16x trailing earnings. I think this is cheap for a company that reported an 8.5% increase in total sales during the first 16 weeks of FY 2018 despite tough trading conditions. Furthermore, I believe the rollout of its in-store clinics will be a key driver of growth over the coming years. In-store clinics are currently found in 17% of its stores, but management is targeting over 60% in the future.
Super Retail Group Ltd (ASX: SUL)
The company behind brands such as Super Cheap Auto and Rebel Sport could be another bargain buy at just 11x estimated forward earnings. Management has worked hard to prepare for Amazon's arrival in Australia and I remain confident it has done enough to remain a step ahead and continue its growth. As well as trading at a bargain price, its shares provide a trailing fully franked 5.8% dividend at the current share price.
