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Looking for cheap UK shares? 2 FTSE 100 shares I think ISA investors can’t afford to miss

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It seems confidence in UK shares is beginning to collapse through the floor as the Covid-19 crisis rolls on. The FTSE 100 just came within a whisker of hitting its lowest for four-and-a-half months, below 6,000 points. A fall to significant new troughs could be just around the corner as lockdown measures are ramped up again.

I have to tell you though, my enthusiasm for UK shares remains extremely bright. I’ve kept investing in my Stocks and Shares ISA in 2020 and plan to go bargain hunting if a second stock market crash occurs. I’m not downplaying the extreme economic turmoil that’s been wrought by Covid-19. I simply believe those who have stopped buying UK shares in recent months are missing out on a brilliant investment opportunity.

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I’m keeping faith with UK shares!

It’s clear the extreme economic downturn will decimate corporate profits in the near term. It’s already caused hundreds of UK shares to slash, postpone, or axe dividends altogether. Stacks of companies have introduced, or are mulling the idea of, issuing new shares to reinforce their balance sheets. Investors clearly need to be extremely careful before parting with their cash then.

But it’s not all bad news for UK share investors. There are still hundreds of quality stocks in sound financial health and with robust profit outlooks for you and I to choose from. It’s crucial to remember that the most successful investors aim to make money over the long term. This approach allows investors to minimise the impact of stock market volatility. And the 2020 stock market crash allows us to buy these high-calibre UK stocks at rock-bottom prices.

2 FTSE 100 shares that could make you rich

Let me talk you through a couple of unmissable FTSE 100 bargains I’m thinking of buying for my ISA today:

  • Flutter Entertainment is a great play on the exploding online gambling industry. It’s a segment that’s growing at a rate of knots and the experts at Statista reckon it’ll grow to be worth $92.3bn by 2023. This compares with a value of $58.9bn last year. And, thanks to its winning brands like Paddy Power and Pokerstars, FTSE 100-quoted Flutter is well-placed to ride this trend. Today, this UK share trades on a forward price-to-earnings (PEG) ratio of 0.8. This sort of value deserves serious attention.
  • GlaxoSmithKline also offers eye-popping value today. The pharmaceuticals giant changes hands on a forward price-to-earnings growth (PEG) multiple of 13 times. It carries a terrific 5.2% dividend yield too. Okay, drugs development is fraught with danger. Even the slightest launch delay can result in the loss of many millions of pounds. But this FTSE 100 share has an exceptional record of getting its therapies from lab bench and onto the pharmacy shelf. And it has a packed product pipeline to deliver excellent profits growth during the next decade, at least. I don’t think these qualities are reflected by Glaxo’s current low price.

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Royston Wild has no position in any of the shares mentioned. The Motley Fool UK owns shares of Flutter Entertainment. The Motley Fool UK has recommended GlaxoSmithKline. 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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