UK share markets have had a terrific run in the week to date. They continue to benefit from the overhanging ‘Biden Bounce’ as well as promising news on a Covid-19 vaccine. As I type the FTSE 100’s trading above 6,340 points for the first time since early June.
They say that a high tide lifts all boats but this week’s rally hasn’t helped all UK shares. In fact, a number of top stocks have reversed sharply over the past few days. And this leaves plenty of them appearing to me to be too cheap to miss.
Here are two top-class UK shares that I’m considering buying for my Stocks and Shares ISA following recent price falls:
Why I rate this UK e-commerce share
ASOS (LSE: ASC) shares have fallen sharply in value over the past month. They’re down almost 20% during since the middle of October and fell heavily once news of a possible Covid-19 vaccine emerged this week. Presumably this latest fall reflects market expectations of increased competition from non-online retailers should a vaccine come out and lockdowns end.
The end of lockdown measures bode well for ASOS too. It means that demand for its clothing will likely pick up as people get out and about again. There are another couple of reasons why this UK share should continue to thrive in 2021. It’s one of the biggest players in an e-commerce market that’s growing at a stratospheric rate. And its wide range of low-cost products should remain in hot demand as economic conditions on the ground will likely remain very difficult.
I consider the recent dip in ASOS’s share price as a terrific dip buying opportunity for November. A forward price-to-earnings (P/E) ratio of 38 times might look expensive on paper. But I reckon the online retail giant’s multiple growth drivers make it worthy of such a meaty premium.
One of my favourite foodies
Premier Foods (LSE: PFD) shares fell sharply in recent days. The Mr Kipling and Bisto manufacturer released some terrific trading numbers on Monday but Mr Market was unimpressed, sending its share price 10% lower on the day. I reckon this provides a brilliant dip buying opportunity.
Revenues rocketed 15% in the six months to September as Covid-19 lockdowns boosted trade. However, an increase in homecooking wasn’t the only reason why Premier Foods impressed in the first half and lifted its profits expectations for the full year. The small cap also performed the broader market thanks to market share gains.
And this pays testament to the UK share’s broad stable of beloved food brands. Premier Foods’s recent share price weakness leaves it trading on a forward P/E multiple of just 11 times. This makes it far too good to miss, in my opinion.
