The stock market crash has thrown up many bargains within the FTSE 350. With so many companies trading on dirt-cheap valuations, you may be wondering what are the best UK stocks to buy right now.
Here are two I think are among the best shares you can invest in at the moment.
Home emergency repairs company HomeServe (LSE: HSV) operates worldwide and is an established market leader in its field.
Last year’s financial performance was noticeably strong. Revenue and statutory operating profit were up 12% and 13% respectively. On top of this, the company boasted an impressive customer retention rate of 82%.
Due to being designated as an essential service, its operations haven’t been hugely affected by Covid-19. Business has continued as usual and bosses have taken the decision not to furlough or fire any staff.
What’s more, earlier in the month, HomeServe said it expected to deliver full-year profits ahead of expectations in light of the company maintaining a full workforce during the pandemic.
Despite all this, the share price has fallen by around 15% since its mid-February highs. However, over the last month it’s risen from a low of 768p to close at 1,128p on Friday.
the shares trade at a price-to-earnings ratio of 34, which for me is justified by the company’s bright prospects. Expansion in new and existing markets will be a key avenue for continued growth.
All things considered, I think shares in HomeServe offer great value with the prospect of attractive returns in the future. Considering the company’s strong performance in light of the global pandemic, I think it’s one of the best UK stocks to buy right now.
Prudential (LSE: PRU) is an international financial services company providing a wide range of goods and services. The group specialises in insurance and asset management.
As a result of the stock market crash, the company’s share price has fallen by around 30%. That’s a substantially larger fall than the FTSE 100 index as a whole, which has shed around 21% of its value.
What’s more, a price-to-earnings ratio of close to 7 reinforces the notion that there may be value to be had. Especially considering the company’s prospects for further growth.
The group has successfully expanded into the Asian market and is experiencing rapid growth in the region. This, combined with a mature and established position in the US division, leads me to believe that the company’s strategy of diversification will continue to pay off.
Furthermore, demographic trends are certainly in Prudential’s favour. A growing, yet ageing, population is good news for business, meaning the company is an attractive investment for the long term.
Early last week, the company revealed that a prominent director in the firm purchased shares in the company. That’s a sure sign of directors’ confidence in the future of the group.
Prudential is yet to announce a decision regarding its final dividend payment. But regardless of the outcome, I think the company possesses the balance sheet and cash necessary to come out the other end in good shape.
As with HomeServe, I think shares in Prudential represent great value combined with bright future prospects. In my opinion, the company is one of the best UK stocks to buy right now.
Matthew Dumigan has no position in any of the shares mentioned. The Motley Fool UK has recommended Homeserve and Prudential. 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.