The FTSE 100 stock market crash has caused a number of high-quality companies to trade at relatively low prices. Although their prospects may continue to be unclear over the coming months, they have the potential to recover and catalyse your portfolio’s performance in the long run.
With that in mind, here are two large-cap shares that could be worth buying today with £10k, or any other amount. They have the potential to boost your chances of making a million as the economy and stock market gradually recover from the recent crash.
FTSE 100 housebuilder Barratt Developments
Barratt’s (LSE: BDEV) share price has underperformed the FTSE 100 since the start of 2020. It’s down by 27%, versus a 20% fall for the index. This suggests investors are maintaining a cautious stance towards the business while a weak economic outlook persists.
However, the company’s recent update highlighted its financial strength, as well as its positive plans to reopen. This could mean it’s able to deliver improving financial performance as factors such as the stamp duty holiday and lower interest rates cause demand for new homes to rise.
In fact, the business has seen strong interest among potential buyers since reopening its sales sites. This indicates it may now offer good value for money while its shares continue to include a wide margin of safety.
While other FTSE 100 shares may have a more resilient outlook than Barratt, the company’s past performance suggests it has long-term recovery potential. Buying it now, while it continues to trade significantly below its recent share price highs, could prove to be a logical move that increases your chances of making a million.
Another FTSE 100 stock that’s underperformed the index since the start of the year is British Land (LSE: BLND). The commercial property business has recorded a share price fall of 40% in 2020. Recent operational updates have highlighted the difficulties it faces.
Around 64% of its retail units were open as at the end of June. Although that figure could rise over the coming months as lockdown measures ease, the shift from in-store to online could be catalysed by the coronavirus pandemic. As such, demand for the company’s retail units could come under pressure.
Despite this, British Land could offer long-term growth potential. It has a relatively diverse portfolio of assets and a sound financial position that could enable it to adapt to changing trends within the commercial property market. This may mean that while further difficulties may be ahead for investors, there’s turnaround potential on offer over the long run.
As such, now could be the right time to buy a slice of it within a portfolio of FTSE 100 shares. Over time, their current low valuations could benefit from an improving economic outlook and stronger investor sentiment. That could mean posting recoveries to increase your chances of building a seven-figure portfolio.
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Peter Stephens owns shares of Barratt Developments and British Land Co. The Motley Fool UK has recommended British Land Co. 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.