This great company’s cheap shares have crashed 25% in 10 months. I’d buy today!

first_img I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Enter Your Email Address Our 6 ‘Best Buys Now’ Shares Image source: Getty Images I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. After a sizeable surge since Halloween, the FTSE 100 index is taking a breather. As I write, the index is down roughly 125 points (1.9%) from Monday’s mid-afternoon peak of 6,455. Nevertheless, the Footsie has gained almost 745 points (13.3%) since October, making this a positive month for UK shareholders. On the other side of the Atlantic, news of a highly effective Covid-19 vaccine from US biotech Moderna lifted stock prices again. Yesterday, the S&P 500 index closed at a record closing high of 3,627 points, up 11.2% in 2020. Despite these recent rises, I still see hidden value in quality FTSE 100 companies selling cheaply today. For example, I’d buy these cheap shares right now.GSK is one of my favourite FTSE 100 stocksHabitual Fool readers will know that I write about GlaxoSmithKline (LSE: GSK) more often than almost any other FTSE 100 firm. That’s because I regard its cheap shares of one of the biggest low-risk bargains in the entire Footsie. Having been a GSK shareholder for most of the past 30 years, I’ve followed its fortunes over the decades. Also, I’ve had a couple of close relatives work in leading scientific roles at GSK, so I’ve seen the company from the inside.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Under new CEO (and recent Dame) Emma Walmsley, GSK has been undergoing enforced evolution. It is now focused on being a world leader in immunology, oncology (cancer), HIV/AIDS, respiratory treatments, and vaccines. And, being the UK’s second-largest pharmaceutical company, you’d expect the Covid-19 pandemic to boost GSK’s share price, right? Wrong, because these cheap shares just keep getting cheaper.Cheap shares: GSK is down 25% in 10 monthsAs I write, the GSK share price is 1,395p, having falling back 47p (3.3%) overnight. Although this is 111p (8.6%) above the stock’s 52-week closing low of 1,284p on 30 October, I believe GSK’s cheap shares have far further to rise. After all, at their 2020 high on 24 January, they closed at 1,857p, which is 1.33 times the current price. In other words, GSK shares have fallen almost exactly a quarter (24.9%) in 10 months, which puts them in crash territory.In my view, GSK’s cheap shares should appeal to a wide range of conservative investors, such as value seekers and income investors. GSK is what I call an ‘SLR share’, in that it offers Safety, Liquidity, and Returns, as follows:Safety: GSK is a FTSE 100 heavyweight with a market value of £73.4bn, so you know it’s not going to go away any time soon.Liquidity: GSK shares are among the most liquid, being easy to buy and sell in very large quantities.Returns: For the past five years, GSK shares have paid a yearly dividend of 80p.Today, GSK’s cheap shares offer a chunky dividend yield of 5.73%. This is about 1.8 times the FTSE 100’s dividend yield of roughly 3.2%. In fact, at £4bn a year, GSK’s yearly cash payout is the fifth-largest by size in the entire UK stock market. Also, GSK’s stock is cheap in historical valuation terms. It trades on a price-to-earnings ratio of around 10.8 and an earnings yield of 9.3%.For me and other GSK shareholders, 2020 hasn’t been a great year. But I think 2021 will see GSK producing much higher returns, especially for investors buying in at these depressed prices. That’s why I’d buy these cheap shares today, ideally inside an ISA, to pocket decades of tax-free cash dividends and future capital gains! “This Stock Could Be Like Buying Amazon in 1997”center_img Cliffdarcy owns shares of GlaxoSmithKline. The Motley Fool UK has recommended GlaxoSmithKline. 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. Simply click below to discover how you can take advantage of this. Cliff D’Arcy | Tuesday, 17th November, 2020 | More on: GSK This great company’s cheap shares have crashed 25% in 10 months. I’d buy today! Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! See all posts by Cliff D’Arcylast_img

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