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How I would spend $20,000 on ASX shares this week

Sebastian Bowen
Businessman paying Australian money

With another week underway and the S&P/ASX200 (ASX: XJO) index losing some of last week’s gains this morning, it might be a good time to consider where to invest your surplus cash this week – if you’re lucky enough to carry that burden.

Here are 3 ASX shares that I think are worthy of a look today.

Appen Ltd (ASX: APX)

Appen shares are on fire today after the dataset company upgraded its earnings guidance for FY19. Appen was expecting earnings before interest, tax, depreciation and amortisation (EBITDA) to come in between $85–90 million, but now expects a full year earnings of between $96 –99 million.

This once again proves Appen’s mettle and highlights the strong growth that the human-annotated dataset market can command. Thus, I think Appen is worth a buy today – despite the shares rocketing 14.16% to $26.61 (at the time of writing).

Bingo industries Ltd (ASX: BIN)

Bingo shares had a very positive week last week – rising 18% after management advised that it expects to receive EBITDA of $159 million to $164 million in FY20. This would be roughly 50% higher than FY19’s earnings and has been fuelled by the acquisition of Dial-a-Dump, amongst others.

I think the waste management business is one of the most under-appreciated sectors of the ASX – and one that is largely immune to the business cycle or economic conditions. Thus, BIN shares might be a good place to start looking for a good ASX deal this week.

Westpac Banking Corp (ASX: WBC)

Westpac shares have had a horror month – falling from over $29 in mid-October to today’s price of $26.37. The markets have not responded well to Westpac announcing a $2.5 billion capital raise as well as the big four bank slashing its final dividend payout to 80 cents per share.

Still, I think Westpac might be showing good value today. Even if its final dividend is annualised, on today’s prices it is offering a starting yield of 6.60% – still amongst the highest yields you can get on the ASX. For dividend income, Westpac could be a compelling buy this week.

Foolish takeaway

I think these 3 shares are amongst the best deals on the market as we start another week. On value terms, Westpac is looking like the best deal today, but I think both Bingo and Appen are strong growth stocks with bright futures ahead of them.

The post How I would spend $20,000 on ASX shares this week appeared first on Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Appen Ltd. 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 Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2019