Harvey Norman Holdings Limited (ASX: HVN) shares have been under pressure in March, along with the broader market. The Aussie retailer's shares slumped to a new 52-week low of $2.70 per share on Friday.
It's certainly not the only ASX 200 share falling lower, with the S&P/ASX 200 Index (ASX: XJO) now down 25.22% in March. But given where Harvey Norman shares are trading right now, could they be a bargain buy?
Why Harvey Norman shares could be a bargain
Harvey Norman shares have fallen 27.22% and that means they're underperforming the benchmark. It seems to me like investors have been spoken by coronavirus fears. While the pandemic hasn't hit Australia with full force just yet, share markets are inherently forward-looking and we have entered a bear market.
Given this feature, it means that I'm now hunting for tactical buying opportunities on the ASX. Retail is an obvious industry that could be hit hard by any social restrictions. Physical distancing and the threat of a lockdown could weigh heavily on ASX retail valuations.
Harvey Norman shares could be good value right now. While dividend yields could be misleading, the Aussie retailer is currently paying 12.22% to shareholders. It also has a strong online presence which could be critical in the event of further government restrictions.
One unintended benefit could be a sales spike as more Aussie workers shift to a work from home setup. I think a diversified retailer like Harvey Norman may be well-placed to weather a COVID-19 storm.
That's not to say that buying Harvey Norman shares isn't without risks. I like Warren Buffett's mantra of "be fearful when others are greedy and greedy when others are fearful". It's a volatile market out there right now, and investors are certainly fearful.
Foolish takeaway
The truth is, no one know just where this pandemic is going. But if you wait for too long, you may also miss out on the big upside in times like these.
I think Harvey Norman shares have been heavily sold off and could be a bargain buy right now.
