The Motley Fool

These cheap stocks have leapt despite the broader stock market crash! Why?

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Businessman leading a chart upwards
Image source: Getty Images.

Thursday is fast becoming another tough day for share investors. The FTSE 100 for one is down by triple digits again and below 5,000 points once more. However, not everything is down heavily from last night’s close.

Greencore Group (LSE: GNC), for instance, was recently up 18% from Wednesday’s close and trading around 125p per share. It had fallen below the 100p marker and to six-year lows in midweek trading.

5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!

According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…

And if you click here we’ll show you something that could be key to unlocking 5G’s full potential...

Food producers like Glencore usually become lifeboats for frightened investors in times like these. And it’s not difficult to see why. We all need to eat regardless of what social, economic, or political upheaval is unfolding outside our windows, of course.

This FTSE 250 firm’s traditional role as a safe haven hasn’t come to the fore more recently, however. Sure, we still need food, but the rate at which the coronavirus is speeding through the UK population has fuelled fears it could struggle to meet demand.

Reassuring news

News, then, that Greencore’s operations have remained resilient despite the Covid-19 breakout has boosted investor sentiment today. News this morning that chief executive Patrick Coveney has bought nearly half a million pounds worth of shares has helped it bounce back too. 

In an unscheduled update on Wednesday, the food producer said it had “implemented an extensive range of measures to keep colleagues safe.” It’s a programme that seems to be paying off for the time being. Greencore noted that “[our] supply chain and production network have remained fully operational” despite rising infection rates.

Volumes are “holding up well,” it added, although there’s been “a pronounced change” in mix across different parts of its product portfolio and across supermarkets too.

Things could change quickly, of course, but I believe Greencore’s low price-to-earnings (P/E) ratio of 6.6 times bakes in this possibility. This is a reading that could help its share price record more gains in the coming sessions.

Another recent riser

Dignity (LSE: DTY) is another share that’s risen while everything else continues to crumble around it. It’s down 38% over the past month, but has sharply rebounded this week. It was last dealing close to 350p per share. It closed at 16-year troughs below 295p just seven days ago.

The grim reality is that pandemics like these push demand for funeral services to breaking point. Dignity is one of the country’s largest operators in this area and runs more than 800 funeral homes and 46 crematoria in the UK. I think this is a company that stands to be extremely busy in the next few months, much as I wish it wasn’t the case. 

A report earlier this week from Imperial College suggested the awful prospect that as many as 250,000 people could perish from Covid-19 and issues connected to it unless the government adopts stricter quarantine measures. To put this into context, a total of 584,000 died during the whole of 2019 alone.

Despite its recent share price upswing, I feel Dignity is still extremely cheap on paper. A P/E ratio for 2020 sits well inside the bargain-basement benchmark of 10 times and below. This is a share that, like Greencore, has plenty more scope to grow in value in the days ahead.

5 Stocks For Trying To Build Wealth After 50

Markets around the world are reeling from the coronavirus pandemic…

And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.

But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times.

Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down…

You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm.

That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away.

Click here to claim your free copy of this special investing report now!

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Greencore. 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.

Our 6 'Best Buys Now' Shares

Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.

So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee.

Simply click below to discover how you can take advantage of this.