2 crashing FTSE 100 shares I’d buy in an ISA today as the stock market slump continues

These two FTSE 100 (INDEXFTSE:UKX) stocks could offer long-term recovery potential in my opinion.

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Buying crashing FTSE 100 shares may not prove to be a profitable move in the short run. The index could fall further after its 20%+ decline in recent weeks.

However, valuations across the FTSE 100 suggest that there are a number of buying opportunities present for long-term investors. Over time, they may offer recovery potential and could boost your income prospects.

With that in mind, here are two large-cap shares that could be worth buying in a Stocks and Shares ISA today, and holding for the long run.

Shell

Shell’s (LSE: RDSB) share price has fallen by 44% since the start of the year. The spread of coronavirus has caused doubts about the growth in demand for oil and gas. This has contributed to falls in their prices. In addition, a dispute between Saudi Arabia and Russia regarding oil production has caused global supply to increase at a time when demand is weak.

Even though Shell is a relatively diverse business compared to its sector peers, its profitability hinges on the prices of oil and gas. As such, it seems likely that following the decline in both commodities the company will experience a disappointing financial period.

Investors seem to be factoring in a challenging outlook for the business. It now trades on a price-to-earnings (P/E) ratio of 7, while it has a dividend yield of over 11%. Clearly, a fall in its profitability would impact on those figures, but they suggest that the stock now offers a wide margin of safety.

As such, given the asset base of the business and its diverse range of operations, now could be the right time to buy a slice of it for the long run. It may experience further challenges in the short run, but could deliver impressive returns in the coming years.

SSE

Another FTSE 100 share that could deliver high returns in the coming years is SSE (LSE: SSE). Its shares have fallen by 20% in less than a month, and could experience further deterioration in investor sentiment over the near term.

As a utility company, SSE may be less impacted by an economic slowdown than many of its FTSE 100 peers. Therefore, it could offer a degree of defensive appeal to investors. Meanwhile, it has a dividend yield of 6% following its recent share price fall, which suggests that it offers income investing potential. It also plans to raise dividends by at least as much as inflation over the next few years.

Additionally, SSE’s pivot towards renewable energy could enable it to generate improving financial performance over the coming years. Consumers and businesses are gradually shifting towards cleaner forms of energy, which may benefit the business and its bottom line. Therefore, while not immune from the current stock market crash, SSE may offer a relatively resilient outlook and long-term income and growth potential.

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.

Peter Stephens owns shares of Royal Dutch Shell B and SSE. 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.

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