2 ASX shares to buy that are perfectly set up to rally

Yes, there are heaps of cheap stocks out there. But one needs to be careful about buying value traps.

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It's been well documented that there are some sensational bargains out there after the S&P/ASX 200 Index (ASX: XJO)'s 8% dip in January.

But which ones are value traps and which companies are truly ready to take off once the market roars back?

This week experts picked out 2 ASX shares in the latter category, recommending investors buy them right now for a party later:

Living, and travelling, with the virus

The Omicron variant of COVID-19 put a rude stop to the travel industry's revival late last year.

But despite four-figure daily infection numbers still prevalent in NSW and Victoria, activity is starting to pick up again.

And out of all the ASX shares in the travel sector, Sequoia Wealth Management senior wealth manager Peter Day likes Corporate Travel Management Ltd (ASX: CTD).

"Corporate Travel Management has a higher than average level of exposure to essential and domestic travel," he told The Bull.

"In future, the company is expected to generate higher market share than pre-COVID-19 levels."

After falling as much as 22% off its November high, the stock price has already rocketed almost 13% in the last few days.

"Share price catalysts include borders reopening and the execution of a highly accretive acquisition in Helloworld Corporate," said Day.

"Also, a lower cost base is anticipated. The balance sheet is strong and Corporate Travel Management has plenty of liquidity."

The ASX share that loves interest rate rises

QBE Insurance Group Ltd (ASX: QBE) seems to be a "buy" favourite among analysts at the moment, as interest rates are anticipated to rise.

Burman Invest chief investment officer Julia Lee is one of the fans.

"QBE's investment portfolio benefits when interest rates rise. And, the market is pricing in higher interest rates," she said.

"Premium revenue has been growing. Margins have been increasing."

It's one of the few ASX shares that have risen this year, with the price up 6.5% since we sang Auld Lang Syne. The stock is up more than 14% just in February, to close Monday at $12.70.

Morgans has a price target of $14.32 with an "add" rating.

"We like the company's outlook," said Lee.

"QBE plans to report full-year results on February 18."

Motley Fool contributor Tony Yoo owns Corporate Travel Management Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and has recommended Helloworld Limited. The Motley Fool Australia owns and has recommended Helloworld Limited. The Motley Fool Australia has recommended Corporate Travel Management Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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