UK share prices continue to struggle for traction as the Covid-19 crisis rolls on. There are a number of reasons why investor confidence has failed to recover after the stock market crash of 2020. They are problems that threaten to keep demand for UK shares under intense strain, too.
I’m continuing to buy UK shares despite the uncertain economic outlook, though. There are too many top-quality bargain stocks that are available to buy following the market crash. What’s more, some of these could rocket in value before too long despite those macroeconomic and geopolitical factors that are currently draining investor confidence.
Here are several UK shares I think stock investors should consider buying before October:
Financial colossus Chesnara offers the best of both worlds to investors. As well as trading on a forward price-to-earnings (P/E) of just 15 times it carries a mammoth 7.5% dividend yield. And I’m expecting it to pump out a robust set of interims on Monday, September 28.
Chesnara’s share price is down 15% since the stock market crash kicked off in late February. I reckon a reminder of its exceptional defensive qualities later this month could allow it to reclaim some more of this ground. The small cap manages life and pension policies in the UK and across Northern Europe. It’s a market which doesn’t shake when broader economic conditions worsen. And this, combined with its rock-solid balance sheet, should allow Chesnara to remain a supreme dividend payer in the near term and beyond.
I’m expecting another strong release from LoopUp Group, too, when it releases half-year results on Wednesday, September 23. The AIM company is riding a crest of a wave at the moment and announced last week that it had inked “a significant new contract with one of the world’s top-5 law firms.” This follows two other business wins with major global law firms in July and August.
LoopUp provides cloud-based communications for business, and is therefore well placed to ride the growth in flexible working practices following the Covid-19 outbreak. It announced in July that strong trading in the first half of 2020 would drive it to exceed full-year expectations. I’m expecting confirmation that trading has remained strong since then, too. Today LoopUp trades on a forward P/E ratio of just 13 times. This makes it too cheap to miss, in my book, given the company’s impressive revenues trajectory.
I’d also load up on 888 Holdings before the release of half-time financials on Wednesday, September 30. This UK share has rocketed in value in 2020 as lockdowns in its key markets has turbocharged demand for its online gambling services. Yet the FTSE 250 still trades on a bargain-basement forward price-to-earnings growth (PEG) ratio of 1. This is too good to miss in my opinion.
Last time 888 updated the market in summer it, like LoopUp, declared that trading had been better than expected in recent months. It said that average daily revenues were up 34% year on year between January 1 and June 23. I’m expecting it to be a terrific revenues creator for years to come, too. Online gambling has much more room to grow in the years ahead. And 888’s market-leading branding should allow it to capitalise on this opportunity to its fullest.