There are a number of beaten-down ASX shares in the current market. After the S&P/ASX 200 Index (ASX: XJO) fell 2.2% yesterday, here are a few potential buys at their current prices.

5 beaten-down ASX shares that could be in the buy zone

There are a lot of big-name companies that shed billions in value during the recent bear market.

The Scentre Group (ASX: SCG) share price has slumped 42.6% lower this year. While big falls don’t usually occur without reason, quick declines can be an indication of a share being oversold.

Aussie real estate has a lot of question marks given the current restrictions. Scentre is a retail real estate investment trust (REIT) that has spooked investors in the current market.

The Woodside Petroleum Limited (ASX: WPL) share price has also been hit by the coronavirus pandemic. 

Oil prices fell through the floor as manufacturing and travel demand slumped lower. That’s bad news for Woodside’s earnings but easing restrictions could be good news for ASX oil shares in 2020.

The Woodside share price is down 39.9% in the year-to-date which could mean it’s back in the buy zone if a quick economic rebound is on the cards.

It’s not just retail and oil that have been hit hard. The Aussie banks have also been hit hard by the recent restrictions.

Westpac Banking Corp (ASX: WBC) shares are down 28.3% this year. The economic downturn has the potential to hit bank balance sheets and earnings hard in 2020 and 2021.

It’s a similar story for National Australia Bank Ltd (ASX: NAB) shares. NAB’s value is down 26.5% this year which is underperforming the ASX 200 benchmark index by 12.1%.

Finally, Telstra Corporation Ltd (ASX: TLS) is another blue-chip company that has slumped lower this year. Demand for the Aussie telco’s services has skyrocketed during the pandemic but investors are worried.

That could mean Telstra is a cheap buy right now but there’s definitely risk involved in buying underperforming shares in the current market.

Foolish takeaway

These are just 5 beaten-down ASX shares that could be in the buy zone right now. As always, take your own appetite for risk into account when investing in the share market. 

More reading

• Is the Altium share price the steal of the century?
• 5 things to watch on the ASX 200 on Tuesday
• Why MOAT is my favourite ASX ETF
• Can ASX big banks generate an attractive sustainable dividend yield from FY21?
• ASX 200 falls 2%, ASX travel shares drop heavily

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia has recommended Scentre Group. 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.

The post Got $3,000? These 5 beaten-down ASX shares are begging to be bought appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2BfUd5B

If you’re looking to add a few dividend shares to your portfolio, then I think the ones listed below would be worth considering.

Here’s why I think all three would be top options for income investors right now:

Sydney Airport Holdings Pty Ltd (ASX: SYD)

I think Sydney Airport is a dividend share to buy if you can afford to be patient. Times are hard for the airport operator right now, but things will improve once border restrictions lift and domestic travel resumes. Especially given reports of pent up demand for travel in Australia after months of lockdowns and restrictions. I believe this will be enough for the company to pay a 29 cents per share distribution in FY 2021. This represents a forward 4.7% distribution yield based on its last close price.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

Another dividend share to consider buying is the Vanguard Australian Shares High Yield ETF. I think this exchange traded fund is a great option for investors that don’t have enough funds to build a truly diverse portfolio. This is because the fund provides investors with exposure to many of the highest yielding shares on the ASX through just a single investment. This includes the banks, telcos, and mining giants. At present I estimate that its units offer a forward dividend yield of at least 5%.

Wesfarmers Ltd (ASX: WES)

A final dividend share I think would be worth buying is Wesfarmers. I like the conglomerate due to the quality and diversity of its portfolio and management’s long track record of making earnings accretive acquisitions. Overall, I’m confident that Wesfarmers is well-positioned to deliver robust earnings and dividend growth over the next decade. This could lead to solid total returns for investors over the period. For now, I estimate that Wesfarmers’ shares offer investors a forward fully franked ~3.6% dividend yield.

More reading

• ASX 200 falls 2%, ASX travel shares drop heavily
• 2 of the best ASX dividend shares for retirees to buy today
• Got $5,000 spare? Consider Wesfarmers shares and these 2 other ASX companies
• Why ASX, Domain, Tyro, & Wesfarmers shares are dropping lower
• ASX 200 Weekly Wrap: ASX bears take control as market volatility returns

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Wesfarmers 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.

The post Why I would buy Wesfarmers and these ASX dividend shares appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/37yzs1p

On Monday the S&P/ASX 200 Index (ASX: XJO) continued its poor run and tumbled lower again. The benchmark index fell 2.2% to 5,719.8 points.

Will the market be able to bounce back from this on Tuesday? Here are five things to watch:

ASX 200 expected to jump.

The ASX 200 tumbled lower yesterday afternoon after U.S. futures started to point sharply lower. This morning the index looks set to rebound strongly after U.S. markets avoided a selloff and pushed higher. According to the latest SPI futures, the benchmark index is expected to open the day 134 points or 2.3% higher. On Wall Street the Dow Jones rose 0.6%, the S&P 500 pushed 0.8% higher, and the Nasdaq index jumped 1.4%.

Oil prices push higher.

Energy producers including Oil Search Limited (ASX: OSH) and Santos Ltd (ASX: STO) could push higher after oil prices rebounded. According to Bloomberg, the WTI crude oil price climbed 2.15% to US$37.04 a barrel and the Brent crude oil price rose 2.7% to US$39.76 a barrel. Traders were buying oil on hopes that OPEC+ would stick to its production cuts.

Jumbo update.

The Jumbo Interactive Ltd (ASX: JIN) share price will be one to watch today if it returns from its trading halt. The online lottery ticket seller requested the halt on Monday while it prepared an announcement relating to the Western Australia lottery market.

Gold price drops lower.

Gold miners including Evolution Mining Ltd (ASX: EVN) and Newcrest Mining Limited (ASX: NCM) could be on the slide today after the gold price edged lower. According to CNBC, the spot gold price fell 0.25% to US$1,732.80 an ounce after the U.S. dollar strengthened.

Treasury Wine rated neutral.

The Treasury Wine Estates Ltd (ASX: TWE) share price might be fully valued according to analysts at Goldman Sachs. A note out of the investment bank reveals that its analysts have retained their neutral rating and $10.30 price target on the wine company’s shares. While data is pointing to improvements in sales, it notes that pricing on Chinese ecommerce platforms remains notably lower year on year.

More reading

• Why MOAT is my favourite ASX ETF
• Can ASX big banks generate an attractive sustainable dividend yield from FY21?
• ASX 200 falls 2%, ASX travel shares drop heavily
• Clinuvel share price jumps as investors favour healthcare
• Why the ASX 200 tumbled lower on Monday and 2 shares to buy

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Jumbo Interactive Limited. The Motley Fool Australia owns shares of and has recommended Jumbo Interactive Limited and Treasury Wine Estates 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.

The post 5 things to watch on the ASX 200 on Tuesday appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/30LiGug