Finding a cheap ASX share is not simply a matter of looking for the biggest decline.

For me, the best opportunities are when the valuation looks modest compared with what a business could earn over the next few years.

Here are three ASX shares I think fit that description today.

Zip Co Ltd (ASX: ZIP)

Zip is probably the most obvious value opportunity of the three.

The buy now, pay later company’s shares have fallen heavily and were recently trading around $1.99, well below their 52-week high of $4.94.

What I think makes that decline interesting is the earnings outlook.

Consensus forecasts point to earnings per share (EPS) of 15 cents in FY27, rising to 18 cents in FY28 and 22.4 cents in FY29.

At $1.99, that puts Zip shares on a PE ratio of roughly 13.3 times forecast FY27 earnings. If the company reaches the FY29 estimate, the multiple falls to just under 9 times.

That looks inexpensive for a business expected to grow earnings meaningfully over the same period.

Zip still needs to deliver on those forecasts, and I would expect plenty of volatility along the way. But I think the current valuation leaves enough upside to make the shares worth buying.

CSL Ltd (ASX: CSL)

CSL shares have already staged an impressive recovery. The healthcare giant is now trading around $177.67, almost double its 52-week low of $90.

While this means it isn’t as cheap as it was, I still see a lot of value in this ASX share.

Consensus forecasts point to EPS of $8.98 in FY27, rising to $9.47 in FY28 and $10.07 in FY29.

At today’s price, that puts CSL on a forward PE ratio of around 20 times FY27 earnings, falling to less than 18 times FY29 earnings if those forecasts are achieved.

For a global healthcare business with strong positions in plasma therapies, vaccines, and specialised medicines, I think that valuation still looks attractive.

The sharp rebound from the lows means some of the recovery has already been recognised by the market. But with earnings expected to keep growing, I still think CSL offers enough value at current levels to remain on my buy list.

Goodman Group (ASX: GMG)

Goodman is my third pick. The shares were recently trading around $26.49, down from a 52-week high of $34.78.

What I like here is that the share price decline has happened despite its earnings growth outlook remaining positive.

Goodman generated EPS of 129.9 cents in FY26. Consensus forecasts point to 142 cents in FY27 and 151 cents in FY28.

That leaves the shares trading on around 18.6 times forecast FY27 earnings.

I think that looks reasonable given Goodman’s growth opportunities, particularly its increasing exposure to data centres.

The enormous investment being made in AI and cloud infrastructure is creating demand for sites with access to land, power, and major population centres. Goodman has positioned itself to participate in that development pipeline.

Foolish takeaway

Cheap can mean different things in the share market, and I think that is what makes these three ASX shares worth another look.

None of them needs everything to go perfectly for today’s prices to make sense to me. If earnings broadly move in the direction analysts expect, I think there is still room for patient investors to do well.

The post 3 cheap ASX shares I would buy now appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and Goodman Group. The Motley Fool Australia has recommended CSL and Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

New Hope Corporation Ltd (ASX: NHC) shares have delivered investors some seriously outsized returns over the past year.

How seriously?

Well, in late morning trade on Monday, shares in the S&P/ASX 200 Index (ASX: XJO) coal stock are trading for $5.68 apiece. This sees the share price up 41.7% since this time last year, smashing the 2% 12-month losses posted by the ASX 200.

And that’s not including the two fully-franked New Hope dividends, totalling 40 cents per share, that the coal miner paid out (or shortly will pay out) over this period. If we add those back in, then the accumulated value of New Hope shares has surged 51.6% in a year.

New Hope stock traded ex-dividend on 21 September. If you held shares at market close on 21 September, you can expect the final fully-franked 30-cent-per-share dividend to land in your bank account on 15 October.

At current prices, New Hope stock trades on a fully-franked trailing dividend yield of 7%. That equates to a grossed-up yield of 10.1%, once we account for those franking credits.

Atop its own operational successes on and below the ground, New Hope has been benefiting from resurgent global coal prices.

At US$144 per tonne, thermal coal (primarily used for energy production) prices are up approximately 35% in 12 months. And thermal coal prices have lifted more than 21% since the end of February, amid the worldwide energy crunch following the outbreak of the Iran war.

But following on this strong run, is the ASX 200 coal stock now a buy, hold, or sell?

New Hope shares: Buy, hold, or sell?

Fairmont Equities’ Michael Gable recently ran his slide rule over the ASX 200 coal miner (courtesy of The Bull).

“I remain bullish about this thermal coal producer, as the war in Iran is leading other countries to lift demand for thermal coal to offset instability in gas markets,” Gable noted.

Commenting on the miner’s recent performance and passive income appeal, Gable said:

The company generated saleable coal production of 11.5 million tonnes in full year 2026, up 7.6 per cent on the prior corresponding period. Production was above market expectations as was the final, fully franked dividend of 30 cents a share.

Along with lifting production, New Hope also increased its total coal resources over the year, which grew to 2.96 billion tonnes as at 31 May, up from 2.55 billion tonnes year on year.

Summarising his hold recommendation on New Hope shares, Gable concluded, “The share price uptrend since early July is sustainable, in my view.”

The post Up 42% and paying a 7% dividend yield, should I buy New Hope shares today? appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Dateline Resources Ltd (ASX: DTR) share price is flying on Monday morning.

The gold explorer’s shares are currently up 46.03% to 9.2 cents, after finishing Friday’s session at just 6.3 cents.

It’s a welcome change for shareholders, with the stock having lost almost 60% of its value in 2026, and more than 80% over the past year.

Much of that decline has come amid legal troubles surrounding its flagship US gold project.

But today’s announcement has given investors another reason to get excited.

So, let’s take a closer look at see what happened.

Why are Dateline shares rocketing 46%?

In its latest announcement, Dateline revealed that the US Government has stepped in to support the company in its ongoing legal battle.

The US Department of Justice (DOJ) has filed a motion asking the court to lift the injunction preventing work at its Colosseum project in California.

The restriction has been in place since 10 August, following legal action brought by environmental group National Parks Conservation Association (NPCA).

The group is challenging the project’s approved plan of operations, leaving Dateline unable to continue work at the site.

But the US Government wants the company to be able to get back to work while the appeal continues.

In its filing, the DOJ argues that the court got its original decision wrong and that the injunction is harming US national security interests.

And the project’s rare earth potential is also playing a part.

Michael Cadenazzi, Assistant Secretary of War for Industrial Base Policy, has provided a sworn declaration highlighting Colosseum’s potential to produce rare earth elements.

These minerals are considered critical to US national security, especially as the country looks to reduce its reliance on China.

The Asian superpower currently controls around 90% of the world’s rare earth processing.

What’s next for Dateline shares?

The next big date to watch is 26 October, when the court is scheduled to hear the applications to suspend the injunction.

Both Dateline and the US Government have filed separate motions, although the NPCA has already indicated it will oppose them.

If the applications are successful, Dateline could resume work at Colosseum while the appeal continues.

The company’s feasibility study outlined a 10.4 year mine life, with approximately 573,000 ounces of gold production.

The study also forecasts US$1.08 billion in undiscounted pre-tax free cash flow, based on a gold price of US $4,200 per ounce.

However, I’ll be watching the next month’s hearing very closely before getting too excited about today’s massive share price rally.

The post Guess which ASX stock is rocketing 46% today appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.