3 ASX shares looking cheap in today's sell-off

Here's why I think Telstra Corporation Ltd (ASX: TLS) and 2 other ASX shares are looking cheap today

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The S&P/ASX 200 (INDEXASX: XJO) has backed up yesterday's disastrous start to the week with another day of heavy falls. At the time of writing, the ASX 200 has shed another 1.33% and is sitting on 6,885 points. This follows the US Dow Jones Industrial Average shedding 3.56% overnight.

While it's not fun watching the value of your portfolio fall, in every cloud, there's a silver lining (as the saying goes). So here are 3 ASX shares that I think are showing some silver today and might just be going for a bargain.

Washington H. Soul Pattinson & Co. Ltd (ASX: SOL)

Soul Patts is such a share in my view. This industrial conglomerate was trading for over $23 a share last week, but today is going for $21.23 (at the time of writing) – an 8% pullback. After initially spiking earlier this month on news that one of its major holdings TPG Telecom Ltd (ASX: TPM) will be allowed to merge with Vodafone, I think Soul Patts is back in the buy zone today.

I don't think there are many shares on the ASX that can give such a diversified earnings base. Its stellar dividend track record is also something to consider!

Telstra Corporation Ltd (ASX: TLS)

Telstra is another stock that is looking a lot cheaper this week than last week. This might prove to be a good opportunity to pick up shares of Australia's largest telco. I don't think the coronavirus (or anything else at the moment) is going to affect people using their phones and internet, making Telstra's earnings quite immune to any disruptions in my opinion.

Today, Telstra shares are going for $3.60, which is the lowest price that 2020 has offered so far. Therefore, I think Telstra could be a great stock to pick up today. Locking in a 4.44% dividend yield is nothing to be sneezed at!

NIB Holdings Limited (ASX: NHF)

NIB is another company that is not faring well in this week's sell-off. In fact, NIB has had a rough month after the company reported less than impressive earnings numbers in its mid-year report last week. The NHF share price is today trading at $4.88 – a far cry from the company's 52-week high of $8.20 that we saw last year and even from January's high of $6.54.

But I think this stock could be an under-appreciated value play today. NIB is a top notch provider of private health insurance – an industry that is struggling right now. But it is also essential to a well-run healthcare system, which is why I think it could be primed for some government intervention in the next few years. In the meantime, NIB is paying a 4.71% dividend yield on current prices. That's something to lick your lips over!

Motley Fool contributor Sebastian Bowen owns shares of Telstra Limited and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended Telstra Limited and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended NIB Holdings Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

A man looking at his laptop and thinking.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX investors were pulled back down to earth this Tuesday.

Read more »

A woman faces the camera with her lip raised up to the side in total confusion.
Bank Shares

Why is the CBA share price being hit so hard today?

Has CBA's luck finally run out?

Read more »

Three people with gold streamers celebrate good news.
Record Highs

7 ASX 200 shares that just smashed new record highs

In a topsy-turvy day for the ASX 200, these stocks have ascended to new price milestones.

Read more »

A young man punches the air in delight as he reacts to great news on his mobile phone.
Share Gainers

Why EML Payments, Gentrack, Regis, and Resimac shares are racing higher

These shares are outperforming on Tuesday. What's going on?

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why ASX, CBA, Iperionx, and Sayona Mining shares are dropping today

These shares aren't having a good session on Tuesday. But why?

Read more »

A man sits in a chair hunched over a laptop and covered head to toe in frozen icicles to represent Envirosuite's trading halt
Capital Raising

Why the Novonix share price is frozen today

Time to refill the cash tank before it runs out.

Read more »

Woman looking at a phone with stock market bars in the background.
Share Market News

Why did the rising ASX 200 just reverse course into the red?

US President-Elect Donald Trump has announced new tariffs on goods from China, Canada, and Mexico.

Read more »

A man has a surprised and relieved expression on his face. as he raises his hands up to his face in response to the high fluctuations in the Galileo share price today
Broker Notes

This ASX All Ords stock is undervalued and could rocket 60%+

Bell Potter is tipping this share to deliver big returns for investors.

Read more »