£5k to invest in UK shares? I’d use these 3 steps to find the best FTSE 100 bargain stocks today

first_img “This Stock Could Be Like Buying Amazon in 1997” Our 6 ‘Best Buys Now’ Shares £5k to invest in UK shares? I’d use these 3 steps to find the best FTSE 100 bargain stocks today See all posts by Peter Stephens Simply click below to discover how you can take advantage of this. Enter Your Email Address 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. 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.center_img Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! 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. Image source: Getty Images. Peter Stephens 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. Finding the best FTSE 100 bargain shares could be a challenging, but rewarding, task for long-term investors. The index’s outlook may now be relatively volatile and uncertain after its recent market crash. However, this may present cheap UK shares that have the potential to deliver high returns.As such, now could be the right time to invest £5k, or any other amount, in companies with low valuations, wide economic moats and long-term growth potential. They could boost your portfolio’s performance and improve your financial position.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…FTSE 100 bargainsAssessing the value of FTSE 100 shares has become more difficult over recent months. Previously, forecasts may have been used and past profit figures considered when seeking to ascertain whether a stock offered good value for money. However, now that the economic outlook is much more difficult to predict, and some companies have experienced falling profitability, the task is more challenging.Despite this, it is possible to use factors such as past financial performance, asset values and the valuations of sector peers to gauge whether a business is fairly priced. Investors may then wish to obtain a wide margin of safety to protect themselves against a further stock market crash that could yet occur in the short run.Economic moatsFTSE 100 companies with an economic moat, or competitive advantage, may be in a stronger position to overcome the difficulties faced across many sectors at the present time. For example, they may have a unique product that enjoys relatively high demand, or a loyal customer base may mean that their sales performance is more consistent than that of their peers.Companies with economic moats may also be in a stronger position to benefit from a likely economic recovery. Although the prospects for UK shares may be downbeat in the short run due to risks such as a second wave of coronavirus cases, history suggests that they are likely to recover. By purchasing the best quality companies that have competitive advantages, you could reduce your risks and potentially improve your returns.Growth trendsIdentifying growth trends across the FTSE 100’s various sectors may prove to be a challenging task. The outlook for a number of industries has changed materially over recent months.However, a number of sectors are likely to experience strong long-term growth in demand due to ongoing global trends. For example, an ageing world population may mean that demand for healthcare products and services continues to rise over the coming years. Similarly, emerging markets could produce strong growth in demand for consumer goods over the coming years.By investing in companies that are likely to experience growing demand for their goods and services, it is possible to unearth the FTSE 100’s best bargains to boost your financial outlook. Peter Stephens | Friday, 26th June, 2020 | More on: ^FTSE last_img read more