Finding the best investments among UK shares after the recent market crash may prove to be a challenging task. After all, many companies face tough outlooks that could negatively impact on their share price prospects.
However, a number of FTSE 100 shares appear to offer good value for money after their recent price falls. Here are two prime examples that could deliver improving stock price performances after their recent declines. Buying them now could prove to be a profitable move for long-term investors.
Recovery potential among UK shares
Aviva’s (LSE: AV) 30% fall since the start of the year highlights weakening investor sentiment that has been present among many UK shares. Investors have become increasingly cautious about the prospects for the business in an era of significant economic uncertainty.
However, the company’s recent half-year results showed that its financial performance has been robust. Under a new CEO, the company will direct its attention towards markets where it has a competitive advantage over its peers. This could mean that it withdraws from relatively unprofitable markets, and obtains a higher return on capital over the long run.
Aviva will also seek to become more efficient, while improving its levels of customer service. Allied to a strong balance sheet, this could boost the company’s financial performance in the long run. This could lead to improving share price prospects after a disappointing period for investors in UK shares.
A cheap FTSE 100 stock with turnaround potential
British Land’s (LSE: BLND) share price has also fallen heavily this year. It is down by over 40% year-to-date, which highlights investor apathy towards UK shares operating in the commercial property sector.
This could provide an opportunity for long-term investors to purchase British Land while it offers a wide margin of safety. For example, it currently trades at under half its net asset value. Although the value of its assets could fall due to weaker demand from prospective tenants, this seems to have been adequately priced-in by the company’s share price fall.
Clearly, it is likely to take time for consumer confidence and retail sales to deliver sustained growth. And it remains unclear how demand for office and retail space will change over time. However, with a diverse asset base and a solid financial position, British Land appears to offer good value for money at the present time.
A long-term recovery
The potential for a second market crash may dissuade some investors from buying UK shares right now. However, with the likes of Aviva and British Land currently trading significantly lower than they were at the start of the year, they could prove to be among the best investments for long-term investors. Over time, they could deliver successful share price recoveries. As such, now could be the right time to buy them.
The post Best investments after the stock market crash: 2 UK shares I’d buy right now appeared first on The Motley Fool UK.
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Peter Stephens owns shares of Aviva and British Land Co. The Motley Fool UK has recommended British Land Co. 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