The Motley Fool

3 UK shares I’d buy to prepare for the next stock market crash

Image source: Getty Images

In this year’s stock market crash, many UK shares plunged in value. However, some stocks outperformed the market due to their defensive nature and growth characteristics. 

Today I’m going to take a look at three of these companies. I think they could be the perfect stocks to own for investors looking to protect their portfolios from another market decline. 

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...

UK shares to own

Small-cap Wynnstay (LSE: WYN) might fly under the radar of many investors, but the company has performed well this year. The business provides farmers with agricultural products and helps organisations manage logistical problems. 

Demand for both of these services remained high throughout the coronavirus lockdown. This helped the company weather the stock market crash. I think it is highly likely that the demand for Wynnstay’s services will continue to grow in the long term. 

At the UK’s population grows, demand for food will continue to increase, and the country is under increasing pressure to produce more food at home. As one of the only publicly listed farm supply companies, Wynnstay could be one of the best UK shares to play this trend. 

Stock market crash bargain

Shares in power group Drax (LSE: DRX) slumped in the stock market crash.

However, the company provides a critical service for the UK. It’s one of the largest power plant operators in the country. Even at the height of the coronavirus lockdown, consumers were still using electricity. Thanks to this steady demand, the firm’s earnings are expected to decline by just 3% in 2020. 

Still, despite this bright outlook, the stock looks cheap compared to other UK shares. It is currently changing hands at a price-to-earnings (P/E) ratio of 9.5. On top of this, it supports a dividend yield of 6%. 

As such, due to the group’s income potential and defensive nature, I think it could be worth buying the stock as part of a diversified portfolio today while its trades at a low level.

Ferrexpo

Ferrexpo (LSE: FXPO) is one of the world’s largest iron ore producers. Shares in the company performed relatively well in this year’s stock market crash thanks in part to the group’s international diversification. 

In my opinion, this diversification should help the business stage a strong recovery in the years ahead. Countries around the world are planning to spend hundreds of billions of dollars over the next few years to stimulate their economy after the coronavirus pandemic. This could send the demand for iron ore skyrocketing, as infrastructure spending takes centre stage. 

Ferrexpo could be one of the best UK shares to play this trend. As of yet, the market does not seem to have cottoned on to the company’s potential.

It is changing hands at a forward P/E multiple of just five. Investors may also be entitled to a 6% dividend yield, according to current analyst projections. 

All in all, as a stock market crash bargain, I think it is worth taking a closer look at Ferrexpo. 

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...

It’s just ONE innovation from a little-known US company that has quietly spent years preparing for this exact moment…

But you need to get in before the crowd catches onto this ‘sleeping giant’.

Click here to learn more.

Rupert Hargreaves owns no share 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.