The 2020 stock market crash has created an irresistible buying opportunity for share investors. It’s a theme that we here at The Motley Fool like to remind our readers of on a regular basis. The FTSE 100 and FTSE 250 alone are chock-full of top-quality-yet-astonishingly-cheap UK shares following the collapse earlier this year. And it’s our job as writers to bring these cut-price heroes to your attention.
3 cheap UK shares I’d like to buy
You don’t just need to go looking for shares that have fallen in value to grab a bargain however. There are scores of UK shares whose prices have rocketed since the start of the year. Yet, by conventional metrics, they still look too cheap to miss.
Give me a few minutes to talk about some of the low-cost UK shares that I’m thinking of buying in my ISA today:
- Admiral Group is up 8% so far in 2020 and it’s not a mystery as to why. As a major motor insurance provider, customers are legally obliged to take out its products whatever broader economic conditions are like. This provides even the most nervous of investors with peace of mind. I don’t think a forward P/E ratio of 17 times is that expensive, given its supreme defensive qualities and brand strength. But what really attracts my attention is the FTSE 100 insurer’s 5.5% dividend yield.
- Some customer-facing companies with strong online operations have also performed well in 2020. Whether you sell food, or allow people to gamble, through cyberspace you’re set to benefit from rising internet adoption in the wake of the Covid-19 pandemic. This is why online casino and gambling giant Gamesys Group has surged 40% in value this year. I think this particular UK share still looks great value on paper though, given it trades on a P/E ratio of just 8 times.
- The rocketing gold price has dragged the price of bullion-producing UK shares to the stars as well. Highland Gold Mining for example has risen 50% in value since 1 January. But it also looks like a bargain given its low P/E ratio of 12 times for 2020. Gold’s just broken above the $2,000 per ounce marker for the first time, but it looks set to keep booming on the back of rampant central bank money printing. The experts at UBS even suggest gold could hit $2,300 in the coming weeks and months. There seems plenty of scope for Highland’s shares to keep rising then.
Getting rich after the stock market crash
Highland et al are just some of the top-quality UK shares trading below true value right now. This is why we believe the stock market crash of 2020 offers an excellent investment opportunity for savvy share-pickers. And even more cut-price stock market stars can be found by browsing The Motley Fool’s huge library of special reports and timely articles.
