The Motley Fool

5 UK shares I’d buy in the next stock market crash

2020 has been a rollercoaster of a year for UK and global stock markets. The year started off lacklustre for UK shares following a strong fourth quarter in 2019. Towards the end of February, stock markets began a decline, prompted by news flow around the spread of the novel coronavirus. 

By March, stock market investors like me became nervous about the prospects for UK shares amid Covid-19-related shutdowns. The knock-on effects of unprecedented country-wide lockdowns were becoming apparent. 

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...

Governments and global central banks responded swiftly, with strong measures to support economies. Doing so provided confidence to UK and global investors. UK shares started to recover, and several sectors bounced back with strength. 

The next stock market crash

Some sectors of the stock market have not only recovered from the March stock market crash but have outperformed. Has it gone too far? Is another stock market crash around the corner?

Perhaps. Lockdown restrictions were eased during the summer but are slowly being brought back due to fears of an uptick in Covid-19 cases. Further restrictions could have a knock-on effect on UK shares. 

5 UK shares I’d buy on weakness

If we get another stock market crash, I will focus my efforts on these five UK shares. 

I’ve liked Games Workshop shares for several years. This Nottingham-based fantasy miniatures manufacturer operates in a niche but growing market. With market-leading returns, ample cash flow generation, and long-term focus, I believe these UK shares have room for further growth.

Avon Rubber was founded in the UK in 1885. It quickly established itself as a rubber manufacturer, and during the 1940s it became a key supplier of gas masks to help with World War II efforts. Today, it is a global leader in supplying military masks. Recently it said it had agreed to acquire Ohio-based helmets supplier Team Wendy. This looks like a good fit, in my opinion. Complementary technologies and routes to markets should create a stronger business.

Computacenter is an IT infrastructure services company that has benefited from Covid-19-related shutdowns and a shift to work-from-home. It has announced several positive updates this year, which is providing momentum to its share price. I’d definitely be looking to buy some of these UK shares on any market weakness.

The Manchester-based online fashion retailer Boohoo is known for fashion-conscious low-cost clothing. It targets the 16-40-year-old market and has consistently beaten analyst expectations over the past five years or so. Some controversy around its UK supply chain caused recent share price weakness. This offers a good opportunity to buy this quality UK share at lower prices, in my opinion.

My fifth stock that I would buy in another stock market crash is SCS. This is one of the UK’s largest retailers of furniture and flooring. Recently it announced growth that had “significantly exceeded our expectations”. Post lockdown trading has been strong, both online and in-store. With strong earnings growth and plenty of cash on its balance sheet, I wouldn’t hesitate to buy these UK shares on any further weakness.

A Top Share with Enormous Growth Potential

Savvy investors like you won’t want to miss out on this timely opportunity…

Here’s your chance to discover exactly what has got our Motley Fool UK analyst all fired up about this ‘pure-play’ online business (yes, despite the pandemic!).

Not only does this company enjoy a dominant market-leading position…

But its capital-light, highly scalable business model has previously helped it deliver consistently high sales, astounding near-70% margins, and rising shareholder returns … in fact, in 2019 it returned a whopping £150m+ to shareholders in dividends and buybacks!

And here’s the really exciting part…

While COVID-19 may have thrown the company a curveball, management have acted swiftly to ensure this business is as well placed as it can be to ride out the current period of uncertainty… in fact, our analyst believes it should come roaring back to life, just as soon as normal economic activity resumes.

That’s why we think now could be the perfect time for you to start building your own stake in this exceptional business – especially given the shares look to be trading on a fairly undemanding valuation for the year to March 2021.

Click here to claim your copy of this special report now — and we’ll tell you the name of this Top Growth Share… free of charge!

Harshil Patel owns shares in boohoo group and Games Workshop. The Motley Fool UK has recommended Avon Rubber and boohoo group. 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.