The Motley Fool

Stock Market Crash! 3 no-brainer growth shares I’d buy for a SECOND UK lockdown

Image source: Getty Images

If there’s one thing that we’ve come to learn about a market crash, it’s that most shares do eventually bounce back. That’s worth remembering if (and that’s a sizeable ‘if‘) we do end up being confined to our homes for the second time in 2020 and prices lurch downwards. When that recovery comes, it’ll pay to already be invested in great stocks. Here are three suggestions.

Puppy power

Thanks to the demand for new companions (particularly puppies) during the first lockdown, I continue to be bullish on pet product retailer Pets at Home (LSE: PETS). The fact that owners won’t be prepared to cut back on spending means that even a prolonged recession is unlikely to impact the industry too heavily. This is assuming most manage to keep their jobs, of course. 

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...

Now, some of this is clearly already priced-in. After all, Pets at Home has more than doubled in value since March thanks to strong trading. That said, there’s no guarantee it won’t fall along with everything else in the event of a second lockdown being announced. In such a scenario, panicked investors tend to sell what they can, not what they should. Pets at Home is a liquid FTSE 250 stock, hence it may be thrown out with the bathwater.

If so, I think this would be a great opportunity. As we often say at Fool UK, a market crash should be embraced by patient investors, not feared. For me, Pets is a solid hold for the long term.

Game on!

Another share worth buying on any lockdown-related sell-off, in my opinion, is game developer Codemasters (LSE: CDM).

Not that a second stay-at-home order is really necessary for Codemasters and other developers to continue thriving. Gaming is already a multi-billion dollar industry. Perfectly-timed for Christmas, the forthcoming release of the PlayStation 5 and XBox Series X/S in November will only serve to further increase its popularity. 

Like Pets at Home, shares in Codemasters have already doubled in value in the seven months since the market crash.  However, I think they could go even higher. Trading has “remained strong” during the first half of the year, partly due to the rise in digital sales thanks to Covid-19. The launch of games such as F1 2020 and Fast & Furious Crossroads also helped. Another title — DIRT 5 — will be released next month. 

With no debt and almost £50m net cash on its balance sheet, Codemasters also looks financially bulletproof. It’s an easy ‘buy’ for me.

Hitting a high note

The first national lockdown played right into the hands of online musical instrument seller Gear4music (LSE:G4M). I can see this happening again if another series of restrictions are announced.

Again, some of this is already reflected in the £130m valuation slapped on the York-based business. Since March’s market crash, the shares have soared roughly 300% in value! 

Even if a lockdown wasn’t announced in the next few days/weeks, the company is likely to see a flood of orders come in for Christmas. Its pureplay status also allows Gear4music to avoid the high fixed costs that come from having a high street presence.

The small-cap is due to announce interim results on 17 November. There’s no telling where the share price will be by then, but I continue to think the business will go from strength to strength.

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!

Paul Summers 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.

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.