With the S&P/ASX200 (ASX: XJO) index opening higher this morning and now just a whisker away from the record high reached back in July, finding quality ASX shares that are looking cheap seems to be a hard ask this week.
Still, there's always value out there, even if you have to dig a little deeper to find it. Legendary investor Peter Lynch once said that it's the number of stones you turn over that determines your success.
So with that in mind, here are 2 cheap ASX shares that I think are worth looking at this week.
National Australia Bank Ltd (ASX: NAB)
The NAB share price is getting hammered today, down 3.2% at the time of writing at $27.50 a share. The announcement today that fellow 'big four' stablemate Westpac Banking Corp (ASX: WBC) is cutting its 2019 final dividend seems to have resulted in a big sentiment shift towards the banking sector.
Despite these moves, I think NAB's dividend is relatively safe in the short term, mainly because NAB already delivered a dividend cut earlier this year. On current prices, NAB is offering a dividend yield of 6.61% (9.46% grossed-up), making it a great value opportunity (in my opinion) for yield-hungry investors this week.
Zip Co Ltd (ASX: Z1P)
Zip shares have gone from hero to (not quite) zero over the past month, falling from an all-time high of $5.86 in mid-October to today's level of $3.67. A poorly received first-quarter update seems to have been the catalyst for this dramatic turnaround, with the company reporting a 2.2% downturn in cash earnings (although revenue was still up 107%).
Still, investors who continue to be bullish on the buy-now, pay-later space might find some value in Zip's new price range. As Zip's performance last month demonstrates, sentiment can quickly turn with these kind of companies and the Zip sell-off could prove a buying opportunity for the brave investor today.
Foolish takeaway
I think these 2 companies represent some of the best value opportunities on the markets this week and could well be worth turning over. Of course, sell-offs happen for a reason, and doing some deep research is always a good idea when you're betting against the market.
