The Motley Fool

Stock market crash opportunities: I’d buy these two UK shares right now

Image source: Getty Images

Plenty of UK shares are trading at low valuations after the stock market crash, but this doesn’t always make them good buys. The world has been turned upside down this year, and many businesess could find the future tough.

However, a number of FTSE 100 shares offer positive long-term prospects, and should recover as we head back to something approaching normality. If you buy at today’s low valuations, you could find it a profitable move.

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...

While many UK shares have recovered since the stock market lows of March, events and information group Informa (LSE: INF) isn’t one of them. There’s a reason for this. As well as publishing and research, the company specialises in events and exhibitions, which are still off-limits during the pandemic.

UK shares going cheap

In May, Informa warned revenue is likely to fall by a third this year, from £2.9b to £2bn. It also predicted a brighter outlook, amid signs physical events were picking up in China, as the country eased its lockdown.

Since then, it has been a case of one step forward, two steps back, as countries lift and reimpose lockdowns and travel bans. Today’s low valuation of just 8.03 times earnings reflects that, but also gives investors a buying opportunity. It means you should benefit when the share does eventually recover. However, you’ll have to be patient, because pandemic restrictions aren’t simply going to disappear.

Roughly a third of Informa’s earnings come from subscriptions to business intelligence and academic journals, which should keep things ticking over until people start mixing again. Plus it’s also building digital communities as well.

Investing in UK shares like Informa requires a degree of optimism. If you think business will be locked down forever, then avoid. I’m more optimistic. I’m also hoping that Informa’s dividend will return, given time.

Tempting FTSE 100 buy 

Few things are more resilient than the UK housing market. It shrugged off the financial crisis and Brexit and, so far, has shrugged off Covid-19 as well. That’s why I would always include a housebuilder in my portfolio of UK shares. So why not buy the biggest – Barratt Developments (LSE: BDEV).

The Barratt share price has also struggled to recover from the March crash. I expected it to do better, as chancellor Rishi Sunak’s stamp duty holiday gets people moving again. It looks dirt-cheap right now, trading at just 7.17 times earnings. I’d therefore be tempted to buy it today, with the aim of holding on for a long-term recovery.

Low interest rates are also driving demand and sustaining prices, even if lenders are cautious about offering high loan-to-value (LTV) mortgages. Barratt doesn’t pay a dividend at the moment, but shareholder payouts should return, in time.

There’s still nowhere near enough property for our fast-growing population. I’d invest in the companies building the homes we need, while their shares are down.

You might prefer this stock instead.

Did Boris Give This Stock a £50million+ Boost?

On February 3rd, 2020, Boris Johnson made a surprise announcement…

…potentially helping to grow one little-known British company’s revenues by an expected £50million+.

You probably saw this announcement in the news. But we bet you’ve never heard of the company which we believe could profit.

Get the full details here – while you have time.

Harvey Jones has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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.