A market correction can represent a great opportunity to buy undervalued ASX shares. The market has been wobbly in recent weeks as concerns over the coronavirus outbreak have hit valuations hard.
However, whenever there are big moves in a share market, there are also buying opportunities. Here are 3 undervalued ASX shares that I think could be worth buying with a spare $5,000 lying around.
National Australia Bank Ltd (ASX: NAB)
The NAB share price has been hit hard in recent weeks. NAB shares have fallen to a new 52-week low this week and its dividend yield has surged to 7.55%.
Most of this reaction has come on the back of the RBA interest rate cut this week on top of existing profitability worries. The Aussie central bank cut rates by 25 basis points to 0.50% which puts more pressure on the big banks' net interest margins (NIMs).
I think NAB could be one of those undervalued ASX shares that's worth buying. At $22.00 per share, you could easily snap up 90 shares and park $2,000 to get a strong dividend and potential capital gains.
Webjet Limited (ASX: WEB)
Webjet shares are arguably the riskiest buy of the bunch at the moment. Concerns over the coronavirus have hurt the Webjet share price and sent it plummeting lower. At the time of writing, shares in the Aussie travel group have fallen nearly 40% lower since the beginning of last week to $8.14 per share.
The big fear here is that travel numbers will slow down as the virus spreads. Whether it is through personal preference of government travel bans like we've seen in South Korea and Iran, fewer bookings will hurt Webjet's earnings.
However, this is an aggressive move in such a short space of time which makes me think Webjet could be an undervalued ASX share right now. I'd allocate $1,000 of my $5,000 to Webjet and buy 122 shares with that.
JB Hi-Fi Limited (ASX: JBH)
The JB Hi-Fi share price is my final undervalued ASX share to buy on the list. Shares in the Aussie electronics and white goods retailer have slumped 10.22% lower this year to $34.26. That's despite some solid half-year earnings numbers from the group which sent its share price surging.
Coronavirus concerns may be a factor, but JB Hi-Fi has also been under short-selling pressure. I personally think its track record speaks for itself. I'd put my final $2,000 towards JB Hi-Fi and buy 58 undervalued ASX shares in the retailer.
