Investor appetite for UK shares remains at rock bottom. The FTSE 100 has sunk back towards the 6,000-point marker while the FTSE 250’s dropping to two-week lows.
On this occasion some truly awful US jobs numbers, and ghoulish comments from the Federal Reserve on the Stateside economy, have damaged confidence in UK shares. It’s quite possible a second stock market crash could be just around the corner. But are investors missing a terrific opportunity to get rich by selling up or sitting on the sidelines?
Our view at The Motley Fool is an emphatic ‘yes’. Sure, share pickers need to be extremely careful given the severe economic consequences of Covid-19. But there remains a treasure trove of quality UK shares that could still make you rich. And the stock market crash allows you and I to buy them at dirt-cheap prices.
3 top UK shares for your ISA
Buying UK shares following market crashes is a great way to supercharge your investment returns. It allows us to snap them up at low cost and to eventually sell them for much higher as market confidence improves.
There’s a galaxy of oversold stocks on the FTSE 100 and FTSE 250 alone that merit serious attention at current prices. Here’s a few I’m considering buying for my own Stocks and Shares ISA today:
- Bank of Georgia’s shares have collapsed during 2020 as Covid-19 has smashed the Eurasian country’s economy. But the bank spiked earlier this week following news that trading picked up significantly in the second quarter, leading to hopes of a faster-than-expected economic rebound. I’d buy this FTSE 250 stock on expectations of rocketing GDP growth over the medium-to-long term. And a forward price-to-earnings (P/E) ratio of 7 times suggests excellent value today.
- FTSE 100 advertising colossus WPP, meanwhile, trades on a P/E ratio of 11 times for 2020. This UK share carries a meaty 3.5% dividend yield as well. Global ad spending has taken a whack this year but is expected to come roaring back from next year (media investment firm Group M reckons it’ll rebound 8% in 2021). And WPP has the scale and the expertise to ride this predicted uptick.
- The Berkeley Group also offers plenty of all-round value for investors. This FTSE 100 share trades on an undemanding forward P/E ratio of 15 times. And it boasts a chunky 4.5% dividend yield too. Sales of its newbuild homes might take a hit in the near term as the UK economy struggles. But the UK’s huge homes shortage should stop sales falling off a cliff. And this supply and demand imbalance should deliver splendid profits growth over the longer run once economic conditions improve.
More quality stocks to buy after the crash
These are only a few of the cut-price UK shares I’m thinking of buying for my ISA. The list of quality stocks that are too cheap to miss after the stock market crash is huge. And The Motley Fool’s epic library of exclusive reports can help you find them and make a fortune.
Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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.