Market volatility is back! 2 sinking UK shares I’d buy right now

I’m not frantically selling my UK shares as market volatility increases! Here’s why I’m looking for the best bargain stocks to buy instead.

| More on:

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 volatility has shot through the roof as macroeconomic concerns have grown. The FTSE 100’s sunk to its lowest level for eight weeks and more choppiness is likely as inflationary pressures grow.

I haven’t sold any of my shares though. And I have no plans to do so. In fact, I’m searching for the best bargain stocks to buy following this recent round of heavy selling.

Taking a long-term view

I’m someone who invests with a long-term view in mind. And there are stacks of terrific UK shares I think might make me terrific returns, regardless of any near-term problems.

Here are two sinking stocks I think could be too good to miss following market volatility.

#1: Spire Healthcare

Private hospital group Spire Healthcare (LSE: SPI) has slipped to its cheapest for almost a year on Thursday. I think it’s a great buy though as Britain’s free healthcare service goes from bad to worse.

Spending on healthcare tends to remain stable even when economic conditions deteriorate. Our health is one thing that we can’t afford to skimp on, right? So I think the market has overreacted by heavily selling this UK share.

Today, news emerged that NHS waiting lists hit fresh record highs of 6.4m in March. This was up a staggering 200,000 month-on-month.

The government expects lists to keep growing too, which I think should continue driving patient volumes at Spire Healthcare higher. The number of self-pay patients at the company’s hospitals and clinics soared 115% year-on-year in 2021 as people turned their backs on the NHS.

My only concern with Spire Healthcare is its elevated earnings multiple. Despite market volatility, the business trades on a forward price-to-earnings (P/E) ratio of 43.6 times.

Stocks that carry high valuations can suffer extra-heavy sell-offs if newsflow disappoints. That said, I believe the possible long-term rewards of owning Spire still make it an excellent buy for me.

#2: Sylvania Platinum

I’d also load up on Sylvania Platinum (LSE: SLP) shares following fresh erosion in its share price. Its metals are critical materials in autocatalysts where they’re used to reduce car emissions. I think profits here could soar as the fight against climate change intensifies.

This week the European Parliament passed a law requiring carmakers to accelerate their pollution-cutting plans. It will require them to reduce carbon emissions by a fifth by 2025.

Climate change is a global issue and Sylvania Platinum could see demand for its material take off over the next decade. Sinking car production rates due to supply chain issues threatens company revenues in the near term. But the gradual transition to greener technologies presents opportunities that I find hard to ignore.

At 88p per share penny stock Sylvania trades on a forward P/E ratio of just four times. It also carries an enormous 5.6% dividend yield. I think this could be one of the hottest stocks for me to buy following recent market volatility.

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.

Royston Wild has no position in any of the shares mentioned. 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.

More on Investing Articles

Young black man looking at phone while on the London Overground
Value Shares

After a 16% drop, FTSE 100 stock JD Sports Fashion looks like a steal to me

This FTSE 100 stock has tanked since mid-September. Edward Sheldon believes that there's value on offer after the share price…

Read more »

Petrochemical engineer working at night with digital tablet inside oil and gas refinery plant
Investing Articles

Is now the time to buy BP shares? Here’s what the charts say

The best time to buy shares in a company is when they’re trading at a discount. But the future is…

Read more »

Investing Articles

Here’s how I’d use £50K to aim for a million when the stock market crashes

Seeing a stock market crash as a buying opportunity could prove lucrative for a well-prepared, long-term investor. Christopher Ruane explains…

Read more »

Stack of one pound coins falling over
Investing Articles

It’s up 27% with a P/E of 9! I’m considering the potential of this blossoming penny stock

Despite several years of losses, this UK penny stock has an impressive valuation. I’m looking to see if it could…

Read more »

US Stock

The Nvidia share price falls! Here’s what I think happens next for the S&P 500

Jon Smith reviews the overnight results from Nvidia and explains why this could stall the S&P 500 performance through to…

Read more »

Investing Articles

Down 15% today, is this FTSE 100 share too cheap for me to miss?

JD Sports' share price has tanked after the FTSE 100 share released another profit warning. Is this the opportunity I've…

Read more »

Investing Articles

Up 8% today, is this FTSE 100 growth stock a slam-dunk buy for me?

Halma's share price is soaring thanks to another headline-grabbing trading update. Is the FTSE 100 stock now too good for…

Read more »

Investing Articles

With a P/E ratio of just 10.5 is now a brilliant time to buy a cut-price FTSE 250 tracker?

Harvey Jones says a recent dip in the FTSE 250 leaves the index trading at bargain levels. One stock in…

Read more »