3 Bargain UK Shares I’d Buy With £10k Today
The 2020 stock market crash leaves many UK shares trading far too cheaply right now. Give me a few moments to reveal a few top bargains that I think you should buy, and to discuss why I think they’re too cheap to miss right now.
A UK Share I’ve Just Bought
Getting exposure to e-commerce remains one of the most potentially-lucrative investment themes right now. Internet shopping activity has rocketed over the past decade and the impact of Covid-19 on consumer habits has given the retail segment another shot in the arm.
I reckon buying Clipper Logistics — a UK share which provides a multitude of services to retailers — is a great way to play this theme. Predominantly it supplies warehousing and distribution services to help companies get their goods to their customers. The British e-commerce market is the biggest in Europe, and snapping up shares in this small cap is a great way to capitalise on this, in my opinion.
I actually bought Clipper Logistics stock earlier this week. At recent prices it offers the sort of value that’s too good to pass up on. City analysts expect earnings to rocket 30% in the current fiscal year alone. And this leaves it dealing on an unmissable forward price-to-earnings growth (or PEG) multiple of 0.7. A meaty 3% dividend yield adds a cherry to this UK share’s investment case, too.
Playing The Gold Price
I recently explained why a bright outlook for gold prices makes gold-producing UK shares brilliant buys today. I’d add Serabi Gold to the list of great UK shares worth buying for this reason, and particularly so at current prices. Right now this particular metals mammoth trades on a forward price-to-earnings (P/E) ratio of just 7 times.
Fresh financials released last week showed why Serabi is a great way to play the rocketing gold price. It said that operating profit before tax soared to $6.1m in the six months to June from $3.4m a year earlier as prices of the precious commodity ballooned.
No wonder, then, that City analysts expect earnings for the full year to rise 182% for the full year. And the number crunchers don’t think Serabi’s booming bottom line is a flash in the pan, either. They’re expecting the mining ace’s profits to leap almost 70% in 2021 as well. This is one UK share I’d buy today and hold for years to come as ultra-loose, gold-boosting central bank policy appears here to stay.
Another Bargain Stock I’d Buy Today
I reckon B&M European Value Retail is another top UK share for the here and now. City brokers expect earnings to blast nearly 60% higher in the current financial year. Why? They predict that tough economic conditions will drive shoppers into the arms of cut-price retailers like this.
These heady forecasts leave B&M dealing on a forward PEG ratio of 0.3. And no wonder the abacus bashers are so optimistic — latest financials showed like-for-like revenues at the FTSE 250 company leap by more than a quarter year on year between March 29 and June 27.
B&M has opened dozens more stores over the past year and its commitment to expansion should keep sales and profits on a healthy uptrend during this new decade. I’d happily add this share to my own stocks portfolio.
Royston Wild owns shares in Clipper Logistics.