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.

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.

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There is no doubt that the downturn in overseas travel has been devastating to our local travel industry. Many of our leading ASX travel shares have seen their share prices plummet in recent months as bans on international travel have kicked in.

Data just released by the Australian Bureau of Statistics (ABS) indicates that overseas arrivals in Australia in April 2020 were down by 99% compared with April 2019.

Devastating impact on ASX travel shares

Since 20 February, Australia’s major airline Qantas Airways Limited (ASX: QAN) has seen its shares decline by a massive 47%. Qantas recently secured a further $550 million in funding against 3 of its aircraft, following a $1.05 billion raising in March.

The COVID-19 impact on its major competitor Virgin Australia Holdings Ltd (ASX: VAH) has been even more devastating, with Virgin shares falling heavily in the months before the company entered voluntary administration in April.

The travel booking sector also has been hit savagely, as both international and domestic flight bookings have dried up. Corporate Travel Management Ltd (ASX: CTD) has seen a partial rebound in its share price since mid-March to now be down around 30% since 20 February.

Unfortunately, the same can’t be said for Webjet Limited (ASX: WEB), which is down 67%, and Flight Centre Travel Group Ltd (ASX: FLT), which is down by 71%, in the same period. Both Webjet and Flight Centre were forced to undergo capital raisings to boost liquidity and try to ensure they come out of the crisis in a sound financial position.

Sharp decline in April part of a downward trend

The ABS revealed that over two-thirds of the 22,000 arrivals in April were citizens returning from overseas, while just under 7,000 arrivals were non-Australian citizens.

The ABS further noted that the decreases in arrivals and departures during April were part of a continuing downward trend that has been evident in the past few months since travel restrictions were first put in place by the Australian government at the beginning of February.

When will international travel pick up again?

It is quite possible that domestic travel could gradually start to pick up in the months ahead as the government begins to ease lockdown restrictions. However, the chances of international travel getting back to normal to any significant degree before the end of this year are highly unlikely.

While the Australian government hasn’t made any official comments, the most likely first step for international travel will be for flights to resume between Australia and New Zealand, with travel between Australia and other countries introduced further down the track when the outbreak of the pandemic globally is more under control.

More reading

• ASX stock of the day: This ASX airline share jumped 45% today on expansion speculation
• Regional Express soars 45% higher amid plans to take on Qantas and Virgin Australia
• The smartest ASX shares to buy if you have $2,000
• Why Afterpay, Flight Centre, Mesoblast, & Sezzle shares are dropping lower
• 3 top ASX 200 shares you can buy on sale today

Motley Fool contributor Phil Harpur owns shares of Corporate Travel Management Limited and Webjet Ltd. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited and Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel Group 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.

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I think it’s very possible to build good wealth with small investments. You just have to utilise the power of compound interest.

If you think you need to invest hundreds of thousands of dollars to build good wealth then you’d be mistaken.

There are great calculators out there that help you calculate how much you can build your wealth in the coming years and decades.

According to Moneysmart, if you invest $500 every month for 20 years and the share market grows at 10% a year then you’d finish with $380,000. That’s not millionaire status, but investing $6,000 a year is fairly achievable for most households. That’s not increasing the monthly $500 investment at any point.

Imagine if you were 25 and had 40 years to compound your wealth to retirement instead. You’d end up with over $3.1 million.

What ASX shares would be helpful for building good wealth?

You could go for good exchange-traded funds (ETFs) that provide diversification and have cheap fees like BetaShares Australia 200 ETF (ASX: A200), iShares S&P 500 ETF (ASX:IVV) and iShares S&P Global 100 (ASX: IOO).

You could go for quality fund managers like Magellan Global Trust (ASX: MGG), WAM Global Limited (ASX: WGB) or Future Generation Investment Company Ltd (ASX: FGX).

Or to build your wealth you could go for some of the best individual shares out there like Brickworks Limited (ASX: BKW), Pushpay Holdings Ltd (ASX: PPH) or Bubs Australia Ltd (ASX: BUB).

More reading

• Revealed: 5 dividend shares for reliable income
• Why high yield dividend shares can be detrimental to your wealth
• Is it time to buy ASX small caps for your portfolio?
• The Pushpay share price is up 70% in 2020: Why I would still invest
• Is it time to invest in shares or wait on the sidelines?

Motley Fool contributor Tristan Harrison owns shares of FUTURE GEN FPO, MAGLOBTRST UNITS, and WAMGLOBAL FPO. The Motley Fool Australia owns shares of and has recommended Brickworks, BUBS AUST FPO, and PUSHPAY FPO NZX. 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.

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