We here at The Motley Fool have strong opinions over the 2020 stock market crash and what it means for UK share investors. We don’t believe the meltdown a reason for investors to pull up the drawbridge.
Instead, we reckon it gives you and I a rare chance to load up on five-star-quality UK shares at little cost and make a fortune during the subsequent stock market recovery. This is how many British investors became millionaires after the banking crisis of a decade ago.
3 cheap shares that could make you rich
With this in mind, let me talk about a few top-quality UK shares I think are too good to miss at current prices. I reckon they could make you a fortune once economic conditions improve:
- The economic consequences of Covid-19 will damage emerging market demand for life insurance products. This is why FTSE 100 colossus Prudential has fallen in value and now trades on a forward price-to-earnings (P/E) ratio of 10 times. But this phenomenon is likely to be short-lived. In 2017, China was responsible for a tenth of global life insurance premiums versus 1% in 2000, driven by strong economic growth, rising population levels and an underpenetrated financial services market. All these factors remain in play and mean that Prudential remains a top growth share for this decade and beyond. It’s why I own it in my own Stocks and Shares ISA.
- I’d buy Tyman after the recent stock market crash too. Right now, the door-and-window-component maker can be picked up on a forward P/E ratio of just below 10 times. Revenues creation has been “better than expected” following lockdown easing, it said. And Tyman can rely on the strength of its brands to keep driving sales even if market conditions worsen. Not that this is appearing on the horizon yet. New home starts in the UK share’s core US marketplace rocketed at their fastest pace for almost four years in July.
- FTSE 100 stock WPP’s worth serious consideration at current prices as well. Global advertising budgets face an uncertain near-term outlook as Covid-19 infection rates keep rising. However, WPP has the financial strength to hunker down and ride out this turbulence. Its balance sheet remains so robust, in fact, that the blue-chip’s still actively pursuing acquisitions. It bought Velvet Consulting this month, an expert in consumer experience consultancy. I’m confident the Footsie giant will have the scale and the know-how to capitalise on the global economic recovery to its fullest. And a P/E ratio of 12 times represents an attractive entry point at which to tune in on this.
More top UK shares I’d buy!
WPP et al are just a few of the UK shares I think are too cheap to miss today. The recent stock market crash leaves plenty of top stocks like these trading at rock-bottom prices. And by browsing The Motley Fool’s epic collection of special reports can discover even more possible millionaire-makers to buy. So do some research and make the most of the recent stock market crash!
Royston Wild owns shares of Prudential. The Motley Fool UK has recommended Prudential. 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.