The recent FTSE 100 stock market crash means many high-quality companies now trade at bargain prices. Some of these stocks have recovered from their lows over the past few weeks. However, many are still trading down on the year.
As such, despite the risks still facing the market, such as a possible second wave of coronavirus, now could be a great time to snap up a share of these firms.
With that in mind, here are two blue-chip shares that could be worth buying today and holding over the long run.
FTSE 100 stocks on offer
The Hargreaves Lansdown (LSE: HL) share price has shown little sign of mounting a successful recovery over recent weeks. Despite the FTSE 100’s recent performance, the stock remains 18% below the level at which it started the year.
However, despite this, the company’s underlying operations seem to be firing on all cylinders. Its most recent trading update showed the group booked £4bn of new business during the four months to the end of April.
A staggering 94,000 new customers signed up to trading during this time frame, amid one of the worst market downturns in history. It seems as if most of these new clients didn’t waste any time diving into the stock market. Record dealing volumes drove revenue up 13% for the first few months of the company’s financial year to a record £448m.
These figures show that despite the coronavirus-imposed economic and financial markets setback in the first quarter of this year, it’s business-as-usual for the FTSE 100 giant. Therefore, with the stock still trading below the position it started the year, now could be the perfect time to snap up a share of this leading financial enterprise.
Shares in asset management giant Schroders (LSE: SDR) have also struggled this year. But, just like Hargreaves Landsdown, the FTSE 100 company’s underlying business looks in better shape than its share price. The firm’s most recent trading update showed the group booked net new business of £30bn in the first quarter of 2020.
That said, Schroders’ success is somewhat tied to the fortunes of the stock market. Most wealth managers earn their money by charging clients a fee every year. This is usually based on a percentage of assets. So, when stock markets rise and asset values grow, income should increase. When markets fall, the opposite may happen.
So, while the outlook for financial markets remains uncertain, the FTSE 100 stock’s near-term prospects may also be difficult to predict. But, over the next decade, a likely recovery in the world economy could catalyse its financial performance. This may lead to an improving share price outlook.
The stock is down around 16% since the beginning of the year, suggesting it offers a wide margin of safety at current levels. As such, now may be the right time to buy a slice of this world-leading asset management group and FTSE 100 stalwart.
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Rupert Hargreaves owns shares in Schroders. The Motley Fool UK has recommended Hargreaves Lansdown. 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.
Motley Fool UK 2020