10 FTSE stocks I’d buy for a market crash recovery

The market crash recovery could be unusually quick. G A Chester names 10 FTSE stocks risk-tolerant investors may want to consider.

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

‘Market crash recovery’ isn’t a phrase I’m reading a lot in financial headlines at the moment. This suggests it could be a good time for risk-tolerant contrarian investors to start shopping for recovery plays. The market crash has been unprecedented in terms of its speed. And I see a credible argument the recovery could also be unusually quick.

China is already beginning to get back to business. And there are signs Covid-19 infection rates are slowing in Europe’s earliest-hit nation, Italy. With recovery in mind, here are 10 FTSE stocks I see as very buyable today.

Market crash-trashed travel and leisure

Companies in the travel and leisure sector have been particularly hard-hit. These include some notable FTSE 100 names. UK-focused Premier Inn owner Whitbread is one. International cruise ships group Carnival is another.

Should you invest £1,000 in Associated British Foods right now?

When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets. And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Associated British Foods made the list?

See the 6 stocks

I believe both companies could bounce back strongly, if they traverse the current earnings abyss. I view Whitbread’s decision to keep all furloughed employees on full pay as a sign of management’s confidence. Meanwhile, Carnival has managed to raise £5bn to help it stay afloat through the crisis.

Camera obscura

Travel curtailments, and wider lockdowns, have hurt FTSE 250 firm Photo-Me International. Many of its photobooths and other vending operations are sited in areas of high footfall. That means public transport venues and shopping malls. However, I’m encouraged by the chief executive buying shedloads of shares in recent days.

Meanwhile, FTSE 100 broadcaster ITV is being hit by the widespread suspension of corporate marketing spend. I see this as another good stock for a market crash recovery.

Property picks

Housebuilders tend to be strong recovery plays. The FTSE 100 volume builders aren’t quite cheap enough for my liking at the moment. However, mid-cap retirement home specialist McCarthy & Stone is. Its shares are trading at less than half its tangible net asset value. What’s more, it claims it could survive 2.5 years with no sales revenue.

Staying with mid-caps and the property theme, I reckon global serviced offices group IWG is another with great recovery potential. It briefly closed some of its centres in China earlier in the year. However, it reported last week all are now operational again.

Industrials for a market crash recovery

Similarly, international industrial group Melrose has recently reported all its Chinese factories have reopened. The company has an excellent track record of buying good manufacturing businesses, improving them, and selling them on. I think sentiment for the stock should improve dramatically in a market crash recovery.

The same goes for fellow FTSE 100 industrial Rolls-Royce, which needs no introduction. The company reported good momentum in the underlying business before the full onset of Covid-19. I don’t expect the virus to have a long-lasting impact on the company’s fortunes.

Financial fancies

In the financial sector, UK/US-focused Barclays is a particularly unloved FTSE 100 bank. The shares are currently trading at a near-70% discount to tangible net asset value. I think this offers a wide margin of safety against any near-term write-downs of assets.

I also like the recovery potential of Asia-focused Footsie insurer Prudential. Its teams in the UK, US and Africa have the benefit of learning from their colleagues in Asia. They have already lived with Covid-19 for several months.

There you have it, 10 stocks I think look very buyable for risk-tolerant investors, seeking high rewards from a market crash recovery.

But there may be an even bigger investment opportunity that’s caught my eye:

Investing in AI: 3 Stocks with Huge Potential!

🤖 Are you fascinated by the potential of AI? 🤖

Imagine investing in cutting-edge technology just once, then watching as it evolves and grows, transforming industries and potentially even yielding substantial returns.

If the idea of being part of the AI revolution excites you, along with the prospect of significant potential gains on your initial investment…

Then you won't want to miss this special report inside Motley Fool Share Advisor – 'AI Front Runners: 3 Surprising Stocks Riding The AI Wave’!

And today, we're giving you exclusive access to ONE of these top AI stock picks, absolutely free!

Get your free AI stock pick

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

G A Chester has no position in any of the shares mentioned. The Motley Fool UK owns shares of Melrose. The Motley Fool UK has recommended Barclays, Carnival, ITV, and Prudential. 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.

More on Investing Articles

Blue NIO sports car in Oslo showroom
US Stock

Is NIO stock an unmissable bargain below $4?

Jon Smith addresses some of the recent chatter about NIO stock and explains why he's not convinced now's the best…

Read more »

Black woman using smartphone at home, watching stock charts.
Investing Articles

£10,000 invested in Greggs shares today could deliver £363 in dividends in 2027

Greggs shares have dipped significantly over the past 12 months, but this has pushed the dividend yield way up, creating…

Read more »

Tesla car at super charger station
Investing Articles

More bad news! Is it now game over for Tesla stock?

Tesla stock is still trading at a mighty premium, despite more recent negative developments. Yet there are some bright spots…

Read more »

Engineer Project Manager Talks With Scientist working on Computer
Investing Articles

Down 29% in a year, meet the S&P 500 stock I’m considering buying June

UK investors might not be familiar with Danaher. But the S&P 500 stock is top of Stephen Wright’s buying list…

Read more »

Bournemouth at night with a fireworks display from the pier
Investing Articles

Up 45% with a P/E just over 12 – this FTSE 250 stock is on fire!

Harvey Jones is kicking himself for failing to buy this FTSE 250 stock last October. It’s been the perfect way…

Read more »

Group of friends meet up in a pub
Investing Articles

Down 50%, are Diageo shares a bargain in plain sight?

With the shares trading at multi-year lows, this writer examines the latest trading update from Diageo, together with its long-term…

Read more »

Man putting his card into an ATM machine while his son sits in a stroller beside him.
Investing Articles

3 reasons to consider HSBC shares for passive income

Aiming to generate extra passive income? This writer thinks HSBC shares from the FTSE 100 index are worth a look…

Read more »

US Tariffs street sign
Investing Articles

£10,000 invested in Apple stock 3 months ago is now worth…

This writer is wondering if he should add Apple to his Stocks and Shares ISA portfolio while it's currently under…

Read more »