3 discounted ASX 200 shares to buy before they rebound 

Since late March, it seems sentiment in equities has recovered quickly. 

This has been consistent across both ASX and global shares. 

After falling 9% over the first three weeks of March, the S&P/ASX 200 Index (ASX: XJO) has since rebounded 7%.

Geopolitical shocks and volatility are inevitable during the life of an investor. 

However, this recent recovery shows just how quickly markets can recover. 

Despite the recovery, there are still ASX 200 stocks that haven’t enjoyed the same rebound. 

Here are three still sitting well below fair value according to brokers. 

Life360 Inc (ASX: 360)

For a long time, Life360 shares enjoyed a strong and almost uninterrupted rise.

The company’s core product is a private family and friends social networking app that allows users to communicate and share their locations. 

After peaking at more than $55 per share in October last year, they have since fallen significantly. 

At the time of writing, they are down 66% since hitting all-time highs and closed yesterday at $18.58. 

However, this could now be an opportunity for investors to buy low on a quality company, as the business continues to grow its user base and monetisation.

The team at Bell Potter agrees.

The broker has a buy rating on this ASX 200 stock, with a price target of $35.50. 

From yesterday’s closing price, this indicates an upside of more than 90%. 

Guzman y Gomez Ltd (ASX: GYG)

It has been a turbulent start to life as an ASX 200 stock for GYG. 

After first listing on the ASX in June last year, it quickly rode positive momentum to more than $43 per share. 

However, since then, the fast casual Mexican-inspired food chain has seen its share price fall more than 50%. 

It closed yesterday at $19.96 per share. 

However, the company recently posted a positive third-quarter update, prompting a positive response from Morgans.

The broker has retained their buy rating on this ASX 200 stock with an improved price target of $26.70.

From yesterday’s closing price, this indicates a potential upside of almost 34%. 

Harvey Norman Holdings Ltd (ASX: HVN)

Harvey Norman shares have suffered along with many consumer discretionary shares this year. 

The Australian-based retailer has seen its share price dip 34% year to date. 

It now appears to be another ASX 200 stock trading below fair value. 

Bell Potter currently has a buy rating with a price target of $6.70.

From yesterday’s closing share price of $4.61, that indicates an upside potential of just over 45%. 

The post 3 discounted ASX 200 shares to buy before they rebound  appeared first on The Motley Fool Australia.

More reading

• How to invest $300 a month in Australian shares to target a $50,000 annual second income
• 3 high-quality ASX shares to buy while they are cheap
• Consumer discretionary shares to target for a long-term rebound
• Have these top ASX shares been sold off too far?
• These 3 ASX 200 stocks hit a 52-week low: Buy, sell or hold?

Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360. The Motley Fool Australia has positions in and has recommended Harvey Norman and Life360. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.