With the ASX markets trading higher today, and with many stocks at or near their all-time highs, it's a hard week to find bargains out there. Indeed, the S&P/ASX 200 (ASX: XJO) index is less than 100 points off its own all-time high – not exactly a red-hot market for those looking to add to their stock holdings.
Still, your money is going backwards if you hold it in cash, so even at these market highs, there are still good deals to be made out there.
Here are 2 ASX shares that I think are looking cheap this week.
Bega Cheese Ltd (ASX: BGA)
Bega Cheese shares have been slammed today after the dairy giant issued a market update this morning indicating earnings will drop between 8.7%% and 17.5% on a year-on-year basis. The main cause for this earnings write-down has been squeezes in the national milk supply caused by the ongoing drought.
Still, I think that in time these increased costs will not be permanent, and once the drought breaks, Bega's earnings will rebound. The company remains one of the most trusted brands in cheese, and now owns the iconic Vegemite brand. Therefore, Bega shares might be a buy for the brave value investors out there.
Cleanaway Waste Management Ltd (ASX: CWY)
Cleanaway is another company that has been battered by an earnings update. CWY shares were trading in the $2.10 range last week before the updated guidance released last Friday indicated earnings would remain flat in the first half of FY20. CWY shares subsequently tanked and are going for $1.80 at the time of writing. The company cited soft economic activity, lower commodity prices and a new landfill levy in Queensland as the primary causes for the write-down.
I think for a company of Cleanaway's calibre as well as the benefits of being in a highly defensive market make this a buying opportunity today. CWY shares were relatively expensive prior to the update but are showing some value at today's levels, in my opinion.
Foolish takeaway
Most investors who can consistently generate market beating returns do so by being greedy when others are fearful (to borrow a Buffett phrase). I think the market is showing fear of these two companies, making them well worth a deeper look at their current prices, in my view.
