The best UK shares can be hard to find. They may not necessarily be the cheapest stocks around, or those companies with the highest long-term growth potential. Rather, they could be those businesses that offer the best value for money after the market crash, in terms of their future prospects and price level.
Through searching in unpopular sectors, assessing their quality and valuing their growth potential, you could find the best FTSE 100 and FTSE 250 stocks today. Over time, they could make a positive impact on the value of your Stocks and Shares ISA.
The best UK shares in the most unpopular sectors
Some of the best UK shares may currently be in the sectors that are least popular among investors. The uncertain economic outlook has caused investors to focus on industries that offer clear long-term growth potential. They’ve also generally avoided sectors with weaker near-term outlooks.
This could present an opportunity for ISA investors to purchase the strongest companies in sectors where investor sentiment is weak. For example, a number of oil and gas companies, financial services businesses, and retailers currently face difficult trading conditions. However, many of them have the financial strength to come through near-term challenges. They may well have the market position and strategy to grow their bottom lines over the long run.
Such companies often trade on low valuations due to investor apathy towards the sector in which they operate. This could mean they offer a potent mix of a low price and long-term recovery potential, thereby placing them among the best UK shares to buy at the present time.
A patient approach to unearthing stocks to buy
While it may be tempting to use all of your available capital to buy the best UK shares you can find today, a patient approach to investing may be a prudent move. The economic outlook is uncertain, which means there’s a very real threat of a second market crash taking place in the coming months.
As such, taking your time to conduct thorough due diligence and research on undervalued companies that have growth potential could be a shrewd move. It may provide you with sufficient opportunity to fully assess their prospects, as well as to compare them to other companies operating in the same sector.
Certainly, the best UK shares are unlikely to trade at low price levels in perpetuity. However, investors may face a period of heightened volatility that allows them to react to sudden share price movements to capitalise on attractive valuations. This may be a sound means of taking advantage of a market crash.
It may allow you to fill your Stocks and Shares ISA with the most appealing investment opportunities that generate high returns in the coming years.
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.