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3 undervalued ASX 200 shares that are too good to ignore

There are a number of undervalued ASX 200 shares right now. The S&P/ASX 200 Index (ASX: XJO) has climbed 3.65% higher this week in another crazy week for share markets.

But amidst all the coronavirus panic, there are some good buying opportunities at the moment. Here are 3 ASX 200 shares that I think are undervalued right now.

3 undervalued ASX 200 shares to buy today

1. Woolworths Group Ltd (ASX: WOW)

The Woolworths share price looks to be good value right now. Woolworths shares fell 2.83% lower on Tuesday and could be one undervalued ASX 200 company right now.

The Aussie supermarkets have been climbing higher in 2020 despite the benchmark index slumping. Part of that is how recession-proof the supermarkets have turned out to be. We’ve seen panic buying flow into steady stocking up in 2020 as Aussies adjust to the coronavirus shutdown.

I’d expect to see an increase in the Aussie supermarkets’ revenue and that could boost the Woolworths share price up catch up to Coles Group Ltd (ASX: COL) and Metcash Limited (ASX: MTS) shares.

2. Telstra Corporation Ltd (ASX: TLS)

Telstra shares fell 2.19% yesterday and are down 11.58% since the start of January. Given how many Aussies are working from home right now, I think Telstra could be an undervalued ASX 200 share.

Demand for the group’s services has arguably never been higher. While there is still the impact of NBN Co. on the group’s operations, I think Telstra could see a spike in earnings later this year.

It is also true that higher staff numbers and cost-cutting measures being put on hold could hit the bottom line. However, I think the good could outweigh the bad and make Telstra an undervalued ASX 200 share right now.

Only time will tell, but an 11.58% discount on the group’s share price seems like a bargain to me.

3. Transurban Group (ASX: TCL)

Transurban shares are down 25.15% since the start of the year to $11.16 per share. The toll road operator has been smashed on fears that lockdowns could result in lower toll road revenue in FY 2020. 

That’s probably correct, given there will be fewer cars travelling on the roads. However, I think this is a temporary setback. If you’re a buy and hold investor, you shouldn’t let one bad year cloud your judgement. Provided the company pulls through the pandemic, I don’t think one year of lower earnings is worth a 25% share price decline.

That could make Transurban an undervalued ASX 200 share despite the current bear market.

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Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited and Transurban Group. 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.