No doubt it has been a rough week for ASX investors, with today adding more pain as we've watched the S&P/ASX 200 Index (INDEXASX: XJO) drop another 3.2%.
Fears around the spreading coronavirus have been trumping the headlines and investors (rightfully) are worried about earnings.
With all this happening, it's easy to lose sight of the long-term goal. That being to invest consistently, and for the long term. It may take a special mind to see these declines in a positive light but try to think about it this way. Since the market has always, I repeat, always, continued to reach new highs, would you prefer there to be a significant dip (in other words a buying opportunity) along the way prior to these new highs? A dip where you can buy quality businesses at reduced prices? I would.
With that in mind, below are two ASX 200 shares which I believe are trading at intriguing levels today.
Corporate Travel Management Ltd (ASX: CTD)
It is no surprise that the corporate travel specialist's shares have declined heavily recently in response to the coronavirus. Corporate Travel downgraded its guidance just a couple of weeks ago in response to the outbreak. However, with that being said, the company is expecting activity to return to normal by the end of July.
Corporate Travel splits its operations into four regions: Australia and New Zealand (ANZ), North America (NA), Asia and Europe. It experienced growth in each of these regions in 1H20 with a consolidated total transaction value (TTV) growth of 12%.
With government restrictions on travel to and from China, it is expected that Corporate Travel's Asia region will be hit the hardest. Here, approximately one third of the transactions relating to flights in the Asian region are with China. However, across its other four regions, less than 2% of flights are linked to China with minimal impact being reported in Europe and the US at this stage.
There is no doubt that Corporate Travel's earnings are suffering and will continue to suffer. And it is impossible to know the severity and duration. However, I remain optimistic on the long-term earnings potential of the company. Focusing on a future time when the coronavirus will be a tragic but distant memory makes Corporate Travel shares look sold off now.
Bapcor Ltd (ASX: BAP)
The Bapcor share price appears to have been dragged down with the general market recently. It was only a couple weeks ago that its shares spiked over $7, while today they trade just below $6.
The auto parts dealer recently released a record interim result which saw a 10.4% increase in revenue. So, it is interesting to see Bapcor shares drop so far without the company being materially affected.
However, with scares like these, correlations tend to move to 1. The market has been sold off as a whole which is what makes me interested in Bapcor shares today. I believe its long term earnings potential remains intact.
This means Bapcor shares may be on sale today and over the coming weeks. Additionally, with its share price lower, its dividend yield becomes higher. Here, Bapcor currently offers a grossed-up trailing yield of 4.2%.
