Most FTSE 100 stocks have declined significantly in the recent stock market crash. And now could be an excellent time to consider buying a diverse basket of these beaten-down equities. Doing so could help you benefit from the economic recovery over the next few years.
As such, here are two FTSE 100 stocks that have seen substantial declines in their share prices over the past few weeks. Although the shares will likely see further volatility in the near term, it’s highly likely they could generate an impressive return for investors in the long run.
FTSE 100 stocks on offer
One that could offer good value for money is ITV (LSE: ITV). Shares in the broadcaster have fallen around 52% since the beginning of the year. It’s easy to see why. ITV has seen advertising revenue collapse as companies have pulled contracts to save cash.
On top of this, the firm has shut down much of its production business. Management has also cut ITV’s dividend to improve liquidity.
However, demand for the service is surging. Live TV viewing has soared by 17% since the coronavirus lockdown. Viewing figures on most channels have reached levels not seen for five years, or more.
So while many other FTSE 100 constituents have seen their businesses evaporate overnight. ITV appears to be bucking the trend.
This suggests that while ITV is facing headwinds, its underlying business remains robust. Therefore, with the stock trading close to its lowest level in eight years, now could be a good time for long-term investors to snap up a share of this business.
Another FTSE 100 share that could offer good value for money at present is Aviva (LSE: AV). This one of the UK’s most substantial long-term savings and insurance companies. It is also one of the country’s most trusted pension providers.
This suggests Aviva’s financial performance is likely to be less impacted by the current lockdown than many of its FTSE 100 peers. No matter how long the shutdown lasts, there’ll always be a need for pension managers.
What’s more, the company has long-term growth potential in an industry that’s only likely to experience rising demand over the next few decades.
So I think this could make it an attractive stock to own following the FTSE 100’s recent market crash. Even though management’s decision to postpone the company’s latest dividend payment is disappointing, it seems sensible for the business to conserve cash until the crisis is over.
When it is, Aviva is likely to return to its position as one of the FTSE 100’s top dividend stocks. Restoring the dividend at 31.5p per share (the level analysts were projecting for 2020) would put the FTSE 100 stock’s yield at 13% for investors buying today.
In my opinion, it’s worth waiting for this income potential.
Rupert Hargreaves owns shares in ITV. The Motley Fool UK has recommended ITV. 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.