Have £5k to spend? 3 UK shares I’d buy in an ISA if a second stock market crash happens

A second stock market crash could be just around the corner. My advice is get ready to go dip buying for quality UK shares like these!

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

The current economic outlook continues to spook investors and UK share markets are sliding again. It’s not just exploding coronavirus infection rates that are rattling their nerves either.

Intense political uncertainty ahead of the US presidential election in November is also scaring dip buyers away. As is unnerving news on the Brexit front and the ongoing threat of trade wars between major global economies.

I’m not saying UK share investors shouldn’t be concerned. The threat of a shocking global economic downturn has seen dividends get diced in 2020. Corporate earnings projections have been put through the shredder amid the rolling Covid-19 crisis. And plenty of companies are likely to go to the wall as the stress on their balance sheets mounts.

Man making notes on graphs and charts

Things are scary, sure. But it doesn’t mean you and I should stop buying stocks. There are stacks of top-quality UK shares which continue to have exciting futures. And following recent share price weakness a great many of these look too cheap to miss.

3 of the best

Here are a cluster of UK shares I’m thinking of buying at current prices. I think they could become unmissable should they fall during a broader stock market crash:

  • Today, SSE shares offer terrific value for money. Its forward price-to-earnings (P/E) ratio of 16 times is quite undemanding. But it’s in the dividend arena where the utilities giant stands out with its 6.7% yield. I don’t think this FTSE 100 share’s excellent defensive qualities are reflected at current prices. Electricity demand remains stable during economic downturns and upturns. And this provides this UK share with exceptional profits visibility, despite Covid-19.
  • SSE is in great shape to weather the current storm. B&M European Value Retail, meanwhile, looks set to thrive. It has a huge competitive advantage over most other retailers in that its foods, clothes, household goods and the like are sold at much cheaper prices. This means consumers stream through its doors in times like these. I reckon its forward P/E ratio of 15 times makes it a steal.
  • Codemasters Group offers seriously-impressive value for money today as well. With annual earnings expected to more than double in 2020, this UK share trades on a sub-1 price-to-earnings growth (PEG) ratio of 0.2. I don’t think the video games developer is a flash in the pan though. The gaming industry is growing at breakneck pace and particularly the racing games segment. Findings from Market Research Future suggests this sub-sector will expand at a stunning annualised rate of 11.2% through to 2025. And Codemasters is well-placed to ride this trend, thanks to beloved titles such as Dirt.

Getting rich with UK shares

These are just a few of the high-quality UK shares on my watchlist right now. The Motley Fool’s epic library of exclusive reports can help you find even more. And they’re completely free to download. So why not take a look? They could help you get seriously rich over the long run.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended B&M European Value. 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.

More on Investing Articles

Investing Articles

3 of my top FTSE 250 stocks to consider buying before April

Buying undervalued UK shares can be a great way to generate long-term wealth. Here, Royston Wild reveals a handful on…

Read more »

Ice cube tray filled with ice cubes and three loose ice cubes against dark wood.
Investing Articles

Just released: our 3 top income-focused stocks to buy before April [PREMIUM PICKS]

Our goal here is to highlight some of our past recommendations that we think are of particular interest today, due…

Read more »

Investing Articles

Is this the best chance to buy cheap FTSE 100 shares in a generation?

I want to buy shares when they're cheap, and sell... never, just keep taking the dividends. And the FTSE 100…

Read more »

Man putting his card into an ATM machine while his son sits in a stroller beside him.
Investing Articles

Could NatWest shares be 2024’s number one buy for passive income?

For those of us looking to earn some long-term passive income, how does NatWest's 7% dividend yield sound? It sounds…

Read more »

Investing Articles

£12K in savings? Here’s how I could turn that into £13K annual passive income

This Fool explains how investing a lump sum can help her build a passive income stream to enjoy in her…

Read more »

Aerial shot showing an aircraft shadow flying over an idyllic beach
Investing Articles

Here’s why Rolls-Royce shares are now set to fly over the £4 mark

Once again, Rolls-Royce shares are crushing the FTSE 100. Should I add to my holding of this stock at the…

Read more »

Investing Articles

1 under the radar FTSE 100 AI stock investors should consider buying

Our writer explains why this FTSE 100 pick could be a shrewd investment with its established experience of using AI…

Read more »

Investing Articles

Does the beaten-down Diageo share price make it a no-brainer buy?

Harvey Jones spent years waiting for the Diageo share price to look like good value, before finally buying it in…

Read more »