Image Alt

The Investing Box

  /  Editor's Pick   /  2 cheap UK shares (including a FTSE 100 bargain) to buy today!

2 cheap UK shares (including a FTSE 100 bargain) to buy today!

The UK national flag in front of Canary Wharf skyscrapers where professionals trade shares for a living.

I’m searching for the best cheap UK shares to buy right now. Here are two sub-£5 stocks I think could help supercharge returns from my shares portfolio.

A FTSE 100 stock on my shortlist

Soaring demand for athleisure/sportswear has lifted JD Sports Fashion’s (LSE: JD) share price through the roof. At 225p per share, the retailer’s 40%-plus more expensive than it was a year ago. Yet, on paper, it still seems to offer exceptional value for money.

Forecasters think that JD’s earnings will surge 58% in this financial year. This leaves it trading on a forward price-to-earnings growth (PEG) multiple of 0.4. This is well inside the widely-regarded watermark of 1 and below that suggests a stock could be undervalued.

JD Sports is no flash in the pan. The FTSE 100 share is 250% more expensive than it was half a decade ago. Not only is it benefitting from soaring demand for people seeking out comfortable clothing. The company’s global expansion plan that has seen it enter the US more recently is also delivering exceptional rewards.

I’m also encouraged by JD Sports’ successful move into online shopping, one I think could light a fire under profits as the e-commerce boom continues apace.

Ok, fashion trends can change quickly and JD’s sales could rapidly fall out of favour with consumers but, at current prices, it remains a great cheap UK share for me to buy.

Another cheap UK share I’m considering buying

Video game developers like tinyBuild (LSE: TBLD) look set to have a bright future as demand for leisure software accelerates. The global games market is already bigger than the movie and music sectors combined. And the experts at Statista think it’ll be worth a shade below $269bn by 2025. That compares with the $178.4bn it’s currently valued at.

The ramping up of Covid-19 lockdowns across the globe could boost growth rates even further too. Gaming activity ballooned in 2020 as quarantined people searched for ways to entertain themselves. Turnover at the Overcooked and Hello Neighbor publisher soared 35% last year as a result.

I’m also encouraged by tinyBuild’s commitment to acquisitions to deliver future profits growth. Its latest foray saw it snap up US publisher Versus Evil and Sao Paolo-based games service provider Red Cerberus in November.

The move bulks up tinyBuild’s position in the RPG and strategy games genres and provides improved recruitment possibilities in South America.

A word of warning. The video games market is highly competitive and a disappointing review of a tinyBuild title could have serious ramifications for future revenues.

On balance though, I think tinyBuild remains highly attractive from a reward-to-risk perspective. At current prices of 195.5p per share, the software star trades on a PEG ratio of 0.6. At these prices I think it could be too good for me to miss. City analysts think earnings will soar 50% in this financial year alone.

The post 2 cheap UK shares (including a FTSE 100 bargain) to buy today! appeared first on The Motley Fool UK.

5 Stocks For Trying To Build Wealth After 50

Markets around the world are reeling from the coronavirus pandemic…

And with so many great companies still trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.

But 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.

Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down…

You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm.

That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away.

Click here to claim your free copy of this special investing report now!

More reading

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.