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Stock market crash: I’d buy these 2 FTSE 100 bargains in a Stocks and Shares ISA today

The FTSE 100’s market crash means that many of the index’s members now appear to offer relatively good value for money. Of course, negative news regarding coronavirus could cause their share prices to move lower in the short run. However, long-term investors could capitalise on a number of buying opportunities across a variety of the index’s sectors.

With that in mind, here are two FTSE 100 shares that have fallen heavily in 2020. They could deliver sound recoveries in the coming years. And they may be worth buying today in a tax-efficient account such as a Stocks and Shares ISA.

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Diageo

The financial performance of alcoholic drinks company Diageo (LSE: DGE) is set to be significantly impacted by coronavirus. Its key markets such as China, North America and Europe have been disrupted by lockdown measures. As such, demand for alcoholic drinks in the travel and leisure industry has declined significantly.

However, Diageo recently reported that it has a solid financial position. It is also taking measures such as avoiding unnecessary expenditure and deferring its planned share buyback programme until 2021 at the earliest. Furthermore, it has access to credit lines that could help it to overcome short-term liquidity issues.

Since Diageo has a range of strong brands that enjoy high levels of customer loyalty, its long-term prospects continue to be relatively bright. Its shares now trade 18% lower than they did at the start of 2020, and are close to a two-year low.

As such, now could be an opportune moment to buy a slice of a geographically diverse business that has exposure to fast-growing markets around the world. It could deliver a successful recovery as the world economy gradually emerges from its lockdown measures.

Lloyds

Another FTSE 100 stock that has recorded a large fall in its share price in 2020 is Lloyds (LSE: LLOY). Its trading conditions are likely to have markedly deteriorated as a result of the UK’s uncertain economic outlook. As such, its shares are currently trading around 50% lower than they were at the start of the year.

The bank recently confirmed that it will be making no dividend payments to its shareholders in the current year. This is in line with its peers, and is likely to reduce the appeal of the company’s shares in the short run.

However, in the long run, Lloyds’ low share price could provide scope for capital growth potential. It currently trades at a similar level to its financial crisis lows, which suggests that it offers a wide margin of safety. With the UK economy likely to stage a recovery in the coming years as it has done following every previous downturn, the bank could experience improving operating conditions that catalyse its financial performance and stock price.

Certainly, factors such as a low interest rate and weak business confidence may lead to an uncertain period. But Lloyds’ market position and relatively efficient operations could boost its long-term prospects.

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Peter Stephens owns shares of Diageo and Lloyds Banking Group. The Motley Fool UK has recommended Diageo and Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.