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Stock market crash: 3 UK shares on sale I’d buy today

Rupert Hargreaves
·3-min read
Cute dog in funny colourful jester cap.
Cute dog in funny colourful jester cap.

Now may not seem like a good time to buy UK shares. Indeed, the outlook for stocks is highly uncertain, and I wouldn’t rule out another stock market crash in the near term.

However, research shows that buying stocks in times of uncertainty, when other investors are selling, can lead to strong total returns in the long run.

With that in mind, here are three UK shares on sale that I’d buy today after the stock market crash.

UK shares to buy

Advertising giant WPP (LSE: WPP) has outperformed expectations so far this year. The company’s latest trading update reported that the group saw sales of £2.4bn in the three months to September. That was a 5.5% year-on-year decline, but it was much better than analysts were expecting.

Despite this performance, the stock’s trading 45% below the level at which it began the year. I don’t think the company’s underlying performance justifies this decline.

As such, I think investors may benefit from buying the shares at current levels. In my view, even a slight improvement in the group’s fortunes could lead to a large jump in investor sentiment, which may send the share price soaring.

And investors will be paid to wait. The company resumed dividend payments in August and the stock currently supports a yield of 4.7%.

Stock market crash bargain

Schroders (LSE: SDRC) is projected to report a decline in earnings this year. The asset manager could see net income fall 11%, according to the City. However, profits are projected to rebound in 2022. Analysts expect the company to recover from its Covid-19 slump within two years.

This could help the stock stage a positive performance in the next few years. Schroders hasn’t been as badly hit by the pandemic as some of its peers. Therefore, the firm is relatively well-positioned to stage a recovery in the months and years ahead.

Management is also looking for deals to boost growth going forward. Thanks to these qualities, I’m highly optimistic about the outlook for the stock. A dividend yield of 6.3%, rising to nearly 6.4% next year, is also attractive, in my view. That’s why I’m considering buying the asset manager as part of a basket of UK shares.

Global growth

The last company I’d consider buying after the recent stock market crash is gaming technology business Playtech (LSE: PTEC).

I think this company flies under the radar of most investors, but it shouldn’t. Playtech provides the software for gambling companies to operate their online operations. This is a highly specialised, but extremely lucrative, market.

In recent years, the company has been focusing on the markets in Europe and Asia. However, it’s now planning to expand in the United States, where an explosion in sports betting activity has started a sort of arms race among gambling operations.

Analysts reckon this expansion could help the group report earnings growth of more than 50% next year. If the company manages to hit this target, it looks fantastically cheap at current levels.

As such, I reckon an investor could benefit from buying this business as a long-term growth opportunity.

The post Stock market crash: 3 UK shares on sale I’d buy today appeared first on The Motley Fool UK.

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Rupert Hargreaves owns shares in Schroders. The Motley Fool UK has recommended Schroders (Non-Voting). 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