The stock market crash has caused some investors to naturally become more cautious about buying UK shares. After all, many share prices are yet to recover from their recent declines, and face ongoing risks from challenges such as a rising number of coronavirus cases.
However, many FTSE 100 and FTSE 250 shares appear to offer good value for money at the present time. Here are two prime examples of such companies. They could deliver sound long-term recoveries that enable you to retire early.
Barratt: a cheap housebuilder among UK shares
The prospects for FTSE 100 housebuilders such as Barratt (LSE: BDEV) have improved significantly in recent weeks. The company has reopened its sales offices and construction sites, and also seems to be benefiting from rising demand among potential buyers due to government support.
The company’s recent trading update also highlighted its financial strength. It currently has net cash of £305m, which should provide it with the means to get through current challenges facing the wider economy. And with it having a forward order book amounting to £3.25bn, it seems to be in a strong position to deliver improving financial performance.
Certainly, threats to the economy’s performance such as Brexit and rising unemployment may negatively impact on Barratt’s prospects, as well as those of other UK shares. However, low interest rates and continued government support may act as catalysts on the company’s financial performance. As such, now could be the right time to buy a slice of the business while it continues to trade around 20% lower than it did a year ago.
Unilever: long-term global growth potential
Unilever (LSE: ULVR) is another company that could offer outperformance in the coming years relative to other UK shares. Its recent update showed that it has delivered a resilient performance despite a weak operating environment in many of its end markets.
The group also announced changes to its structure in its recent update. They could help to make the business more agile, which may enable it to respond more quickly to changing consumer trends. This may strengthen Unilever’s competitive position at a time when trends such as online shopping appear to be rapidly strengthening.
The company also announced a review of its global tea business. This could prompt a refresh of its range of brands in the coming years, which may help to strengthen its long-term growth rate and focus its capital on the most productive areas.
With the Unilever share price currently trading around 8% lower than it did a year ago, it could offer a margin of safety compared to other UK shares. As such, with its diverse global exposure and a range of high-quality brands, now may be an opportune moment to buy it to enjoy improving capital returns in the coming years.
Peter Stephens owns shares of Barratt Developments and Unilever. The Motley Fool UK has recommended Unilever. 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.