These 2 ASX 200 shares just hit 52-week lows: I rate them as buys

These two stocks look too cheap to miss!

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Amid all of the recent volatility with S&P/ASX 200 Index (ASX: XJO) shares recently, some have fallen to multi-year lows this week.

A business that has fallen could keep falling – the market doesn't care if you own an ASX share or what price you paid.

I'm confident about the long-term of both of the stocks I'm going to cover below. I see the short-term decline as a longer-term opportunity for both of these names.

Bapcor Ltd (ASX: BAP)

Bapcor is an auto parts company that owns various businesses including Burson, Autobarn, Autopro, BNT (NZ), Truckline, WAN, Midas, ABS, Shock Shop and Battery Town.

The Bapcor share price has fallen 20% this year and 37% from November 2021, as we can see on the chart below.

Bapcor's trade and specialist wholesale businesses are expected to achieve growth in FY24, however, the retail businesses are facing "ongoing challenging market conditions". It's also suffering from margin pressures due to cost inflation, higher payroll taxes and so on.

The ASX 200 share is facing difficulty in the short term, but I think the longer term looks promising with population growth and more kilometres being driven by an "ever-aging car fleet".

It's aiming to expand its location count, which could help its scale and offset some of the margin pressure it's seeing.

The financial metrics look very attractive to me. According to Commsec, the Bapcor share price is valued at just 14 times FY24's estimated earnings with a possible grossed-up dividend yield of 6%.

IGO Ltd (ASX: IGO)

I like this ASX 200 share because of its exposure to a number of commodities related to decarbonisation including lithium, copper, nickel and cobalt.

Since mid-July, it's down by more than 45%, as we can see on the chart below.

It's common for ASX mining shares to see significant changes in the share price as commodity prices change. The slowing growth in the Chinese economy has pushed down the prices of a few resources, including lithium.

I'm not expecting the lithium price to go back to where it was 12 months ago, but I believe the long-term growth of demand thanks to electric vehicle growth and the overall decarbonisation global plans will help push commodity prices higher, at some point.

I believe it's worthwhile looking at investments like this when there has been a major decline and there's no prospect of a recovery for the foreseeable future – that's when the share price may be at/close to its lowest for the cycle.

Unlike plenty of other ASX lithium shares, this business is already making profits and paying dividends.

According to the projections on Commsec, the IGO share price is valued at just 9 times FY25's estimated earnings with a possible grossed-up dividend yield of 4.5% for FY25.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Bapcor. 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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