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As the stock market crash continues, I’d buy these 2 bargain FTSE 100 shares in an ISA

The FTSE 100’s continued volatility means buying shares today could be a risky move. Investors may experience sharp paper losses over the coming months as the economic impact of coronavirus becomes increasingly clear.

However, for long-term investors, now could prove to be a sound buying opportunity. A wide range of FTSE 100 shares currently trade on low valuations. In many cases, they have strong market positions and seem likely to recover from their present-day lows.

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With that in mind, here are two large-cap shares that could be worth buying today in an ISA.

Berkeley Group

The near-term prospects for housebuilders such as Berkeley Group (LSE: BKG) are extremely challenging. The UK housing market has essentially been shut down. It’s not possible to view properties. At the same time, many lenders have removed their mortgage products. This is likely to lead to a period of severe sales declines across the sector.

However, Berkeley Group could be in a relatively strong position to survive the current economic downturn. Its recent trading update highlighted a strong balance sheet, having over £1bn in net cash. This may enable it to not only survive the current crisis, but to capitalise on it by buying distressed assets.

Looking ahead, Berkeley Group may seek to reduce its generous capital return programme. Although this may lead to lower returns for investors in the short run, it could help to position the business for a recovery over the long run. Since it has a long and successful track record of overcoming various economic crises, the company appears to have investment appeal while it trades on a price-to-earnings (P/E) ratio of 7.3.


Healthcare companies such as GSK (LSE: GSK) may be in a better position than many FTSE 100 stocks to survive the economic impact of coronavirus. Its defensive characteristics could help to sustain its top-line growth. This may increase its appeal among investors in the short run.

In the long term, GSK’s decision to enter into a consumer healthcare joint venture with Pfizer could improve its financial performance. It may lead to greater efficiencies across its operations, and enable it to focus on the most attractive growth areas.

According to the company’s most recent results, its main aim is to invest in its pipeline through increasing innovation. Since it has strong cash flow and a solid balance sheet, it seems to be in a sound position to achieve this goal. And, with its shares having come under pressure in recent weeks, its P/E ratio of 12.9 indicates it’s trading below its intrinsic value. That’s also a lower rating than many of its industry peers.

As such, now could be the right time to buy a slice of the business while it offers improving long-term financial prospects and has a wide margin of safety.

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Peter Stephens owns shares of Berkeley Group Holdings and GlaxoSmithKline. The Motley Fool UK owns shares of and 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.