Forget the Lloyds share price! I’d buy this UK share in an ISA for the economic downturn

first_img Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Lloyds Banking Group. 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. 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. “This Stock Could Be Like Buying Amazon in 1997” Forget the Lloyds share price! I’d buy this UK share in an ISA for the economic downturn Our 6 ‘Best Buys Now’ Shares 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. Royston Wild | Friday, 20th November, 2020 | More on: LLOY See all posts by Royston Wildcenter_img Image source: Getty Images. Simply click below to discover how you can take advantage of this. 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 Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! You could be forgiven for thinking that the Covid-19 crisis is almost over if the movement of UK share prices is anything to go by. The FTSE 100 for instance has rocketed 14% since November began and recently hit five-month highs above 6,400 points.A slew of good news surrounding coronavirus vaccines has helped to repair battered investor confidence. But it’s still too early to proclaim that an end to the pandemic could be upon us. Key questions over the eventual success of these vaccines and how they’ll be rolled out to the population remain. Meanwhile, Covid-19 infection rates continue to spike across the globe. The world economy isn’t quite out of the woods yet.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…A high-risk UK shareThe Lloyds Banking Group (LSE: LLOY) share price is one that’s soared in recent weeks. At 35.7p per share, the FTSE 100 bank is now trading at its most expensive since the beginning of June.In my opinion, this puts it in significant danger of a fresh share price correction. City analysts reckon Lloyds will bounce from a 64% earnings drop in 2020 with a 160% rebound in annual profits next year. However, I’m concerned a strong bottom-line recovery at the UK share could remain elusive.The experts at Morgan Stanley have summed up my concerns perfectly in a recent research note. The bank reckons the UK economy will only get “back to normal” in early 2023 and that the recovery will lag that of other major economies.Morgan Stanley says another Covid-19 lockdown will hamper the economic rebound, while its expectations of a no-quota and no-tariff deal in manufactured goods with the European Union will create additional problems “as Brexit increases barriers to trade and drags on investment.” Finally, the bank expects the Bank of England to drag interest rates down to zero in another hit to Lloyds’ profitability.A better bet than LloydsToday, this blue-chip UK share trades on a rock-bottom price-to-earnings (P/E) ratio of 9 times for 2021. Still, the high chance of current earnings forecasts being derailed means this low ratio doesn’t appeal to me. By extension, Lloyds’ chunky 4.7% dividend yield for next year hasn’t turned my head either.I’d much rather buy Begbies Traynor Group in my Stocks and Shares ISA in the current climate. The insolvency services provider announced this week that adjusted operating profits were up 25% in the six months to October as the British economy struggled. Unfortunately, the number of businesses experiencing severe distress inevitably surges during downturns. And the ONS suggests things could be about to get much worse. A whopping 14% of businesses either have low or no confidence that they’ll survive the next three months.City analysts reckon Begbies Traynor’s earnings will rise 5% this fiscal year (to April 2021). It leaves the UK share trading on an undemanding P/E ratio of 14 times. And this, combined with a chunky 3.5% dividend yield, makes it a great buy for value chasers, in my opinion.last_img read more