The 2020 stock market crash has produced a rare opportunity for investors in UK shares to really supercharge their profits. They can buy top-quality shares at cheap prices today and then watch them soar in value as equity markets steadily rebound. It’s a strategy that created hundreds and hundreds of Stocks and Shares ISA millionaires after the 2008–09 global banking crisis.
Stock market crashes are scary things. And it can be tempting to believe that the sky’s about to come crashing down in the immediate aftermath. Many believe that things won’t be the same after the Covid-19 outbreak. This is why investor appetite for UK shares remains so weak, and why the FTSE 100 and FTSE 250 actually retreated over the summer.
You could be making a serious mistake by deciding to stop buying UK shares, though. The twentieth century was fraught with social, macroeconomic, and geopolitical upheaval. It seemed like the world was collapsing after the banking crisis, too. Yet stock markets always have shown a knack for bouncing back strongly. The FTSE 100 hit record highs around 7,500 points just a couple of years ago. I’ve yet to see a reason why share prices won’t rebound strongly this time around, too.
2 cheap UK shares I’m looking at
I’m sure those aforementioned ISA millionaires are scanning the London Stock Exchange again for more blue-chip bargains to buy today. I myself have continued to buy UK shares despite the uncertain economic outlook. And I reckon you should, too.
Here are a couple of ‘too cheap to miss’ UK shares I’m also thinking of adding to my Stocks and Shares ISA:
- Dignity is a terrific pick for even the most nervous investors. Why? Death and taxes are two of life’s rare constants, as they say. And as one of the country’s largest funeral providers, this UK share has exceptional earnings visibility whatever the weather. Covid-19 has hit Dignity as demand for more expensive funeral services has fallen. But the long-term outlook remains robust, helped by the competition watchdog’s decision to freeze introducing price controls last month. The company trades on a price-to-earnings (P/E) ratio of 12 times, making it a bargain in my book.
- Idox trades on a forward price-to-earnings growth (PEG) ratio of 0.3. This is below the accepted bargain benchmark of 1 and fails to reflect the IT service provider’s exceptional defensive qualities. Organic revenues rose 10% during the first half of 2020 despite the Covid-19 crisis. This was driven by an excellent performance from its public sector software business. Tyman can expect sales to keep rocketing too thanks to the strong government spending outlook.
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Idox and Dignity are just a couple of the stunning UK shares available to investors at too-cheap-to-miss prices. You can find even more by browsing The Motley Fool’s epic library of exclusive reports, too. They could help you get rich and possibly even make a million after the stock market crash. So do some research and get investing today!
Royston Wild 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.