S&P/ASX 200 Index (ASX: XJO) shares are no different to anything else you buy with your hard-earned money.
It's best to buy them when they're cheap.
After all, why would you want to waste potential returns by picking up stocks when the valuation is inflated?
Here are two heavily discounted ASX 200 stocks that Shaw and Partners senior investment advisor Jed Richards currently rates as buys:
'We see scope for a buyback'
The ANZ Group Holdings Ltd (ASX: ANZ) share price has plunged 3.7% since Monday last week, and 10% if you go back to April last year.
The latest setback for the big bank came from the competition watchdog.
"The Australian Competition and Consumer Commission (ACCC) has rejected ANZ's bid of $4.9 billion to acquire Suncorp Group Ltd (ASX: SUN)'s banking arm on the basis it would likely reduce lending competition," Richards told The Bull.
However, ANZ is planning to fight the ruling.
Richards feels like there is upside regardless of which way that battle goes.
"The ANZ is seeking a review of the decision from the Australian Competition Tribunal (ACT)," he said.
"We see scope for a buyback if the ACT upholds the decision by the ACCC."
ANZ shares currently pay out a dividend yield of 6.2%, fully franked.
According to CMC Markets, eight out of 14 analysts currently consider the banking stock a buy.
'Risk has been more than priced into the stock'
Resmed CDI (ASX: RMD) has been punished since reporting season, with the stock plummeting an ugly 37.2% since 3 August.
Richards suggested the sell-off of the sleep breathing devices maker was qualitative and speculative in nature rather than based on hard facts or figures.
"The shares were sold off following its fiscal year 2023 result, which showed lower margins.
"Investors appear concerned about the early success of obesity medicines reducing the need for sleep apnoea products."
The advisor believes the punishment for any such headwind is now overdone.
"We believe ResMed provides a buying opportunity," said Richards.
"We believe this risk has been more than priced into the stock."
His conviction is well supported by his peers.
A whopping 19 out of 24 analysts currently surveyed on CMC Markets rate ResMed as a buy.
