Stock markets might be off their lows but plenty of UK share prices remain too cheap to believe. The FTSE 100 and FTSE 250 continue to struggle to gain strength as investors fear a second stock market crash. It’s probable that investor fears over Covid-19, US-Chinese trade wars, Brexit, and political developments in the US will keep buying interest at a minimum too.
What a wasted opportunity, I say! Why should investors run for cover given that UK share prices always soar after stock market crashes? Sure, it may take a number of years. But the most successful investors take a long-term approach to buying shares. They are happy to buy cheap UK share prices today in the expectation that they’ll steadily soar as economic conditions improve.
Don’t forget that the FTSE 100 doubled in value in the decade following the 2008–09 stock market crash. The number of ISA millionaires rocketed in that time after they bought in during the trough and watched UK share prices soar. I believe that the 2020 market crash offers a similarly terrific opportunity to get rich with UK shares.
2 unmissable UK share prices
Investors might want to look at UK share prices that have sold off the sharpest since the Covid-19 crisis began. These could have the greatest potential for a mighty bounceback in the months and years ahead. With this in mind here are two terrific UK shares on my personal watchlist:
- The 28% decline in Associated British Foods share price value in 2020 has really caught my attention. I think it’s over the hump and that sales at its Primark clothing stores should soar now that lockdown measures have been rolled back across its territories. In fact this FTSE 100 share may be one of the high street’s best performers in the short-to-medium term as difficult economic conditions drive volumes of its cut-price clothes. Its commitment to European and North American expansion should deliver mighty profits growth over the long term, too.
- I’m also tempted to buy ITV after its 59% price collapse in 2020. In fact this is one of the most attractive UK share prices following the market crash. As I type it trades on a forward price-to-earnings (P/E) ratio of 7 times, a reading that doesn’t reflect the FTSE 100 firm’s evolution to a global broadcasting colossus. In recent months, advertising income plummeted and production revenue slumped due to filming suspensions. But things are starting to get back to normal for the Love Island. A bulky 4.5% dividend yield sweetens the investment case for this FTSE 100 star.
Get rich after the stock market crash
ITV and Associated British Foods are just a couple of the unmissable UK share prices that can be found on the FTSE 100 alone. The number of too-good-to-miss bargains for stock investors to choose from today is vast. And The Motley Fool’s library of articles and special reports can help you dig them out and even get rich.
Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Associated British Foods and ITV. 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.