Stock market crash: 2 cheap shares I’d buy in an ISA today to get rich and retire early

These two cheap shares could deliver improving returns in my view. They could boost your ISA’s prospects and bring forward your retirement date.

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The stock market crash has left many cheap shares available to purchase for long-term ISA investors. Although they may face further challenges in the short run, over the long run they have the potential to improve your prospects of retiring early.

With that in mind, now could be the right time to buy these two FTSE 100 stocks. Their strategies, valuations and growth potential could improve your financial outlook.

A buying opportunity among cheap shares

RSA’s (LSE: RSA) valuation suggests that it offers strong capital growth prospects relative to other cheap shares. For example, the insurance group is forecast to post a 14% rise in its bottom line next year. Despite this, it trades on a price-to-earnings growth (PEG) ratio of 0.7. This suggests that it has a wide margin of safety.

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The company’s recent interim results highlighted its improving performance in recent months. For example, it reported an improving underwriting profit performance following business improvement actions. Many of its regions also outperformed their expectations, which suggests that the company’s recovery could be relatively sound.

Of course, risks remain in place for RSA and its sector peers. The course of the pandemic continues to be uncertain. However, its low valuation relative to other cheap shares and sound strategy could mean that it delivers share price growth over the long run. As such, now could be the right time to buy it.

An improving market position

Morrisons (LSE: MRW) also appears to offer investment appeal relative to other cheap shares. The company’s recent trading statement highlighted its expanding online presence in recent months, with digital sales capacity doubling since the start of the pandemic.

This could position the company for long-term growth. It was relatively slow to put in place an online grocery service while its rivals grabbed market share. However, after significant investment over recent years, it now seems to be well positioned to benefit from a likely shift in spending from in-store to online.

Certainly, Morrisons faces an uncertain near-term outlook. Its sales may be volatile, while additional costs may be necessary to quickly adapt to fluid operating conditions. However, its price-to-earnings (P/E) ratio of 13 suggests that it offers a margin of safety relative to other cheap shares and could be worth buying for the long term.

Buying stocks after the market crash

Clearly, buying cheap shares after the market crash is likely to be a tough process for any investor. Risks are high, and a second downturn cannot be ruled out.

However, history shows that buying high-quality businesses while they trade at low prices can be a sound means of generating high returns over the long run. It could even improve your prospects of retiring early, with Morrisons and RSA appearing to offer capital growth potential when purchased in a diverse portfolio of stocks.

5 stocks for trying to build wealth after 50

The cost of living crisis shows no signs of slowing… the conflict in the Middle East and Ukraine shows no sign of resolution, while the global economy could be teetering on the brink of recession.

Whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be a daunting prospect during such unprecedented times. Yet despite the stock market’s recent gains, we think many shares still trade at a discount to their true value.

Fortunately, The Motley Fool UK analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global upheaval…

We’re sharing the names in a special FREE investing report that you can download today. We believe these stocks could be a great fit for any well-diversified portfolio with the goal of building wealth in your 50’s.

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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.

Peter Stephens owns shares of Morrisons. The Motley Fool UK has no position in any of the shares mentioned. 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.

Like buying £1 for 51p

This seems ridiculous, but we almost never see shares looking this cheap. Yet this recent ‘Best Buy Now’ has a price/book ratio of 0.51. In plain English, this means that investors effectively get in on a business that holds £1 of assets for every 51p they invest!

Of course, this is the stock market where money is always at risk — these valuations can change and there are no guarantees. But some risks are a LOT more interesting than others, and at The Motley Fool we believe this company is amongst them.

What’s more, it currently boasts a stellar dividend yield of around 8.5%, and right now it’s possible for investors to jump aboard at near-historic lows. Want to get the name for yourself?

See the full investment case

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