It's easy enough to spot ASX shares that are already rocketing up, but most of the money is made by savvy investors who got in before everyone else realises.
So it pays to listen to experts when they discuss stocks that are still cheap, which they believe to have a tremendous gap between business performance and market capitalisation.
Here are two such examples:
Private equity shows confidence in this business
Wilson Asset Management senior equity analyst Sam Koch claims the market is currently full of tempting bargains to snap up.
"We continue to see numerous opportunities that fit our investment process as companies continue to trade at attractive valuations," he said.
"The fact that there has been an increasing number of takeover proposals in the small-cap-industrial market this financial year highlights how some strategic assets are continuing to trade at depressed valuations."
One such small-cap star is aged care residence operator Estia Health Ltd (ASX: EHE).
According to Koch, Wilson has already invested as a "core holding" in two of its portfolios.
"Despite the challenges presented by the pandemic, Estia Health has managed to maintain its strong position in the market, which has not gone unnoticed by investors."
Indeed, the Estia share price has rocketed 3.9% over the past month, which would have been influenced by a March takeover bid from private equity.
"Interestingly, the proposal came before the industry received crucial regulatory clarity that is expected later this year," said Koch.
"This indicates the confidence that Bain Capital has in Estia Health's long-term growth prospects and its ability to navigate regulatory changes in the industry."
This stock's still going for cheap
Shaw and Partners portfolio manager James Gerrish, meanwhile, revealed in his Market Matters Q&A that he loves the outlook for Super Retail Group Ltd (ASX: SUL).
"Super Retail Group is a company Market Matters has liked for a while. It owns Supercheap Auto, Rebel Sport, BCF and others."
Gerrish noted the recent results season showed the business was performing well.
"It beat market expectations with its 1H earnings with sales up 11% and a significant drawdown in inventory which helped margins."
And the best thing is that, despite a 27% rise in the stock price over the past year, the buying window is still open.
"In our opinion, the stock is not too expensive trading on an 11.4x valuation," said Gerrish.
"Plus we like its forecast to yield 6.4% over the next 12 months."
Currently, the dividend yield stands at a not-too-shabby 5.9%.
