I won’t wait for a stock market crash: this stock is on sale NOW!

This Fool isn’t hanging around waiting for a stock market crash. She’s looking for cheap FTSE stocks now to boost her holdings.

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Fears of a looming stock market crash have been pretty real since earlier in the year. Personally, I don’t think we’ll get there. However, I’m not waiting around for stocks to crash and then snap up bargains. I reckon there’s plenty out there right now!

What could cause a stock market crash?

It’s worth remembering that the general consensus of a crash definition is when prominent global markets slump by 10% or more in a day.

So what’s been happening to have caused fears recently? To start with, soaring inflation across the globe has spooked investors, caused havoc, and pushed down markets. On top of that, rising interest rates on our shores, and elsewhere, especially in the US, haven’t helped either.

Finally, tragic geopolitical tensions in Ukraine, further compounded by the recent Israel-Hamas war have also hampered markets and caused lots of volatility.

With no end in sight on the economic or geopolitical front, fears of a stock market crash aren’t going away any time soon, in my opinion.

Top financial stock on sale

With so much volatility, quality stocks look dirt-cheap to me right now. The financial sector stands out to me and one stock I’m looking to buy soon when I can is Barclays (LSE: BARC).

Barclays shares are trading for 136p, as I write. This is 11% cheaper than at this time last year, when they were trading for 154p. However, since February, the shares have dropped 28% from 189p to current levels.

Despite my bullish stance, it would be remiss of me not to note credible challenges that could cause Barclays issues, whether or not a stock market crash occurs.

Rising interest rates are very much a double-edged sword for financial stocks. Barclays could earn more money from higher rates but as consumers struggle, defaults and credit impairments could also increase. This is a risk I’ll keep an eye on.

Plus, when any sort of crash occurs, most stocks tend to cut or cancel dividends, which are never guaranteed.

Now onto the good stuff, Barclays shares look dirt-cheap if you ask me. Trading on a price-to-earnings ratio of just under four, that’s significantly lower than the FTSE 100 average of 14. Plus, it’s lower than its peers, some of the other banking giants in the UK. Furthermore, a passive income opportunity with a healthy 5.6% dividend yield looks well-covered right now.

As one of the so-called big four banks, Barclays is not an upstart or a small fish in a large pond. It is an established business with a wide footprint as well as crucial experience on how to handle any potential stock market crash. So I’m not worried if one were to occur. I’d expect the business to eventually recover and boost my holdings.

To conclude, it’s easy to wait for a potential crash and overlook current cheap shares. I’m definitely not doing that and looking to get ahead of the curve. Barclays is just one stock that’s caught my eye — there are a fair few out there that look unmissable at current levels so I’ll keep being proactive.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Sumayya Mansoor has no position in any of the shares mentioned. The Motley Fool UK has recommended Barclays Plc. 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.

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