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Forget gold and Bitcoin. I’d buy these 2 fallen FTSE 100 shares to make a million

Due to this year’s stock market crash, many FTSE 100 shares now trade at low valuations. While there may be headwinds for a market recovery, the Footsie has always rebounded from crashes in the past. Indeed, often more quickly than many fearful investors expected.

As such, now could be the right time to buy a selection of blue-chip shares while they’re on offer at low prices. Such shares could deliver higher long-term returns than currently popular (and arguably pricey) assets like gold and Bitcoin.

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With this in mind, here are two FTSE 100 shares that appear to have high-return potential after their price falls in 2020. They could boost your financial outlook, and help you make a million in the long run.

One of the hardest-hit FTSE 100 shares

ITV (LSE: ITV) shares have been among the heaviest fallers in the FTSE 100. Their value has dropped about 60% since the start of the year. The Covid-19 pandemic has had a significant negative impact on the business.

The company has seen a big drop in demand for advertising. Also, its production unit, ITV Studios, was forced to halt shooting during the lockdown. Despite good global demand for its library content, group revenue fell 17% in the six months to 30 June.

However, the company remained profitable. It said last week: “We have restarted many of our productions and we are having more positive conversations with advertisers and are seeing some signs of improvement in advertising demand.”

As such, City analysts are forecasting an improving revenue trend through the second half of the year. And a continuing recovery in 2021.

Prospect of impressive returns

ITV has been investing heavily in data, technology, online and streaming in recent years. As such, the business has a strong prospect of long-term growth, and the outlook for the stock appears attractive.

It’s trading at less than eight times current-year forecast earnings, and less than six times forecast earnings for 2021. This bargain-basement rating suggests investors could generate impressive returns from buying the stock today and holding it for the long term.

A relatively resilient FTSE 100 share

Associated British Foods (LSE: ABF) is another FTSE 100 stock that could be worth adding to a portfolio of UK shares. Like ITV Studios’ business, ABF’s value clothing chain Primark was shuttered during the lockdown period.

However, the group’s several food businesses performed strongly. These businesses range from animal feeds to popular grocery brands, such as Twinings, Ovaltine and Ryvita.

The defensive resilience of the food businesses means ABF’s shares haven’t suffered as badly as those of FTSE 100 peer ITV. They’re down 27% since the start of the year. Nevertheless, this is a substantial discount, and suggests ABF could offer good value for money.

Make a million

Not surprisingly, with the forced closure of Primark, there’ll be a big hit to the group’s revenues and profits for its current financial year (ending 30 September). However, with the chain now open again for business, City analysts are forecasting a strong recovery in fiscal 2021.

The stock currently trades at less than 16 times the forecast earnings. Historically, this is well below ABF’s average rating. Therefore, it’s another stock that may catalyse a portfolio of FTSE 100 shares, and increase your chances of making a million in the long run.

A Top Share with Enormous Growth Potential

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But its capital-light, highly scalable business model has previously helped it deliver consistently high sales, astounding near-70% margins, and rising shareholder returns … in fact, in 2019 it returned a whopping £150m+ to shareholders in dividends and buybacks!

And here’s the really exciting part…

While COVID-19 may have thrown the company a curveball, management have acted swiftly to ensure this business is as well placed as it can be to ride out the current period of uncertainty… in fact, our analyst believes it should come roaring back to life, just as soon as normal economic activity resumes.

That’s why we think now could be the perfect time for you to start building your own stake in this exceptional business – especially given the shares look to be trading on a fairly undemanding valuation for the year to March 2021.

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G A Chester 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.

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