The Motley Fool

How I’d find the best bargain shares to buy today

The stock market crash means there are a number of bargain shares available for long-term investors to buy. Of course, an uncertain economic outlook may mean finding them is more challenging now than it was previously.

However, by focusing on sectors with growth potential that are unpopular among investors, and identifying businesses with sound strategies, you could build a diverse portfolio of stocks that’s capable of delivering high returns in the long run.

5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!

According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…

And if you click here we’ll show you something that could be key to unlocking 5G’s full potential...

Bargain shares in unpopular sectors

Buying the best bargain shares in unloved industries could be a sound means of obtaining favourable risk/reward opportunities. Clearly, some sectors may be unpopular among investors for good reasons, such as weak growth outlooks. However, in some cases, investor apathy towards the wider stock market means industries with growth potential are undervalued.

Clearly, it’s currently difficult to identify which sectors can recover from the current challenges facing the world economy. However, many trends of recent years look set to continue in the coming years. For example, an increasing use of technology in our everyday lives, a rising demand for healthcare-related products and services, and a switch towards greener forms of energy are likely to persist.

This strategy may not necessarily lead to portfolio growth in the near term. However, the track record of the stock market shows that buying bargain shares in sectors with growth potential while they’re unpopular among investors could increase your chances of generating high returns in the long run.

Business strength

The best bargain shares aren’t necessarily those with the lowest valuations. Certainly, a wide margin of safety helps to make any stock a ‘bargain’. But the quality of its operations also has a large bearing on its prospects from an investment perspective.

Therefore, buying the strongest businesses in a specific sector could be a sound move. To achieve this goal, it may be necessary to consider factors such as financial strength, growth strategy, and the size of a company’s economic moat. But they may have changed significantly after the coronavirus pandemic. This could create new opportunities for businesses that previously didn’t have especially attractive business models.

Assessing the quality of a range of companies may require time and effort on the part of the investor. However, it could be worth it if it means that you’re able to identify bargain shares that ultimately produce the highest returns in the long run.

With a wealth of information available via annual reports, trading updates, and forecasts, it’s certainly possible for an investor to accurately gauge the quality of a business versus its sector peers. Doing so could make it easier for you to find the best shares available after the market crash that may boost your long-term financial prospects.

A Top Share with Enormous Growth Potential

Savvy investors like you won’t want to miss out on this timely opportunity…

Here’s your chance to discover exactly what has got our Motley Fool UK analyst all fired up about this ‘pure-play’ online business (yes, despite the pandemic!).

Not only does this company enjoy a dominant market-leading position…

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.

Click here to claim your copy of this special report now — and we’ll tell you the name of this Top Growth Share… free of charge!

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.

Our 6 'Best Buys Now' Shares

The renowned analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.

So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee.

Simply enter your email address below to discover how you can take advantage of this.

I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement.