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.
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.
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.