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.
