There’s a lot of volatility on the ASX share market right now, so there are some great opportunities to jump on.
While it can be unnerving to invest when a share price is down, conditions are tough and there’s no turnaround in the foreseeable future (hence the decline of the valuation), that’s likely the best time to invest because it’s when it’s the cheapest,
I really like the below two ideas right now with $5,000 (or another amount).
JB Hi-Fi Ltd (ASX: JBH)
It’s understandable that the market is feeling less optimistic about retailers today than a year ago. Interest rates have jumped, the cost of living is higher, and it doesn’t seem like inflation will come back down any time soon.
That would explain why the JB Hi-Fi share price is down more than 40% in the past year. But, I think that’s an overreaction if we look at the long-term potential.
I don’t know when conditions will improve, but the market is increasingly pricing the business as though it’s going to be challenging for a very long time.
Don’t forget, the FY26 result actually included growth – sales rose 4.8%, EBIT (EBIT explained) grew 5.8% and earnings per share (EPS) increased 5.9%.
FY27 has started negatively, with total sales for both JB Hi-Fi Australia and The Good Guys slightly decreasing, but only by 0.5% and 1.7%, respectively. I think there will be ongoing resilient demand for the company’s electronics and appliances, making this sell-off seem attractive.
As a bonus, it also has a large dividend yield, with the FY26 payout equating to a dividend yield of 7.3%, including the bonus of the franking credits.
Nick Scali Ltd (ASX: NCK)
The other ASX share I want to highlight is Nick Scali, a leading retailer of furniture across three countries. It also owns the Plush brand.
Most of its revenue and profit come from Australia, but it has an expanding Nick Scali presence in New Zealand the UK too.
The Nick Scali share price has fallen more than 40% in the past year, so I think it’s a great time to consider buying into the beaten-down ASX share.
FY26 was a strong result, with revenue growth of 4.3%, EBIT growth of 18% and net profit growth of 22%. That shows the ability of the business to perform when conditions are reasonable (or improving).
In the first five weeks of FY27, written sales orders were “flat” year on year in Australia and New Zealand. UK written sales orders were up 35%.
It’s expecting to open new stores in ANZ and the UK during FY27, which I think looks promising for financial growth in the coming years. The business looks undervalued to me, particularly with how successful its products are in the UK market.
As a bonus, the Nick Scali dividend yield of 7.8%, including the bonus of franking credits, looks compelling to me.
