The S&P/ASX 200 Index (ASX: XJO) has fallen heavily over the last couple of months due to the coronavirus pandemic.
This has led to some of the shares on the index trading at a significant discount to their highs.
Three ASX 200 shares that are down 30% or more in 2020 are listed below. Are they bargain buys?
Australia and New Zealand Banking Grp Ltd (ASX: ANZ)
The ANZ share price is down 37% since the start of the year. Investors have been selling the bank’s shares due to concerns over the impact the pandemic is having on its profits and ultimately its dividends in the near term. This was evident in ANZ’s recent half year results, which saw the bank post a 51% decline in profit to $1.55 billion. This decline was largely the result of credit impairment charges of $1.674 billion and led to the bank deferring its dividend. While this was disappointing, I’m optimistic that the worst is now priced into its shares. So, with Australia on the path to reopening, now could be a good time to invest.
Nearmap Ltd (ASX: NEA)
The Nearmap share price is down 37% in 2020. The aerial imagery technology and location data company’s shares were sold off earlier this year due to a number of downgrade/churn events which led to Nearmap downgrading its guidance. While this was disappointing given its long track record of smashing expectations, I feel confident it is just a temporary headwind and its long term outlook remains very positive. In addition to this, the company has recently announced cost cutting measures and expects to be cash flow breakeven by the end of the financial year. This means the risk of a dilutive capital raising is now very small. In light of this, the quality of its product, and its massive market opportunity, I believe Nearmap would be a top option for patient investors.
Sydney Airport Holdings Pty Ltd (ASX: SYD)
The Sydney Airport share price has fallen 37% since the start of the year. This sizeable share price decline has been driven by the coronavirus pandemic and the impact it is having on passenger numbers. There’s no denying that the short term outlook is bleak, but things will improve as restrictions ease. I suspect that its shares will begin to rerate higher as its passenger numbers recover. This could make it worth being patient with Sydney Airport’s shares and holding them with a long term view.
And don’t miss these dirt cheap shares which could be bargain buys after the market crash.
NEW! 5 Cheap Stocks With Massive Upside Potential
Our experts at The Motley Fool have just released a FREE report detailing 5 shares you can buy now to take advantage of the much cheaper share prices on offer.
One is a diversified conglomerate trading 40% off it’s all time high, all while offering a fully franked dividend yield of over 3%…
Another is a former stock market darling that is one of Australia’s most popular and iconic businesses. Trading at a significant discount to its 52-week high, not only does this stock offer massive upside potential, but it also trades on an attractive fully franked dividend yield of almost 4%.
Plus, this free report highlights 3 more cheap bets that could position you to profit in 2020 and beyond.
Simply click here to scoop up your FREE copy and discover the names of all 5 cheap shares.
But you will have to hurry because the cheap share prices on offer today might not last for long.
Returns as of 7/4/2020
More reading
- This is the best ASX big bank stock you can buy right now
- How can the ASX 200 soar with rising unemployment?
- ASX 200 down 0.9%: CBA reveals $1.5bn COVID19 provision & gold miners charge higher
- Dividends are drying up – but not for these ASX shares
- Safe dividend stocks to buy today for the COVID-19 world
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Nearmap 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 post 30% off: 3 ASX 200 shares to buy on the cheap appeared first on Motley Fool Australia.
from Motley Fool Australia https://ift.tt/3fTxCvM
Leave a Reply