Have £3k to invest in an ISA? 3 cheap UK shares I’d buy for explosive profits growth

Are you looking to squeeze every last inch of value from your hard-saved cash? Well you’re in luck! I reckon these UK shares are too cheap to miss.

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

There’s a world of opportunity for UK share investors to exploit today. With Covid-19 tensions continuing to limit buyer appetite, there are stacks of top stocks being overlooked by market-makers. As a consequence, you and I have a chance to nip in and load our stocks portfolios with brilliant bargains.

It’s true the global economy faces significant challenges in the short-to-medium term. There are still plenty of quality UK shares expected to deliver spectacular earnings growth in this period however.

Image of person checking their shares portfolio on mobile phone and computer

3 top UK shares

The following three UK shares are all expected to enjoy spectacular earnings growth. And, at current prices, I reckon they look too cheap to miss:

  • Clipper Logistics is a UK share I’ve already invested in on account of the key role it plays in the booming e-commerce sector. Its share price has rocketed since I bought in August, but it still remains ultra cheap. Today, Clipper trades on an ultra-low forward PEG ratio of 0.9, as brokers expect annual earnings to rise 29% in this fiscal period. This logistics provider is no flash in the pan though, with analysts reckoning online shopping volumes will continue surging. I plan to hold this particular UK share for many years to come.
  • Investing in Japanese gaming house Konami Holdings Corporation is another great way to try and get rich over the coming decade. Gaming is the about to overtake television as the world’s fastest-growing entertainment sector. And beloved titles such as Pro Evolution Soccer and Metal Gear Solid will allow Konami to ride this trend to its fullest. City analysts reckon earnings will rocket 31% in this fiscal year. And this leaves Konami dealing on a forward price-to-earnings growth (PEG) ratio of just 0.8.
  • Value hunters need to pay gold producer Centamin some serious attention too. As well as also boasting a rock-bottom forward PEG ratio of below 1 — built on predictions that annual earnings will soar 75% in 2020 — this UK share carries a massive 6% dividend yield. Gold prices have stepped back recently on healthy profit booking and a rising dollar. But the eternal safe-haven asset is likely to rebound strongly, due to significant macroeconomic uncertainty and inflationary fears spurred by ongoing central bank money printing. Analysts at Citi, for example, reckon bullion prices will soar from $1,900 per ounce today to average $2,275 in 2021. And they believe gold will rocket to record highs of around $2,400 per ounce in the next six to 12 months.

Making a fortune with some Foolish advice

So what are you waiting for? I think all three of these UK shares would look good in any stocks portfolio. And the 2020 stock market crash has left many more top-quality shares looking too cheap to miss. By browsing The Motley Fool’s huge library of exclusive (and totally free!) reports, you can unearth some of these value heroes. So do some research and get investing today.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Royston Wild owns shares of Clipper Logistics. The Motley Fool UK has recommended Clipper Logistics. 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.

More on Investing Articles

Investing Articles

As the Rolls-Royce share price stalls, investors should consider buying

The super-fast growth of the Rolls-Royce share price has come to an end for now, but Stephen wright thinks there…

Read more »

Tanker coming in to dock in calm waters and a clear sunset
Investing Articles

Could mining shares be a smart buy for my SIPP?

As a long-term investor, should this writer buy mining shares for his SIPP? Here, he weighs some pros and cons…

Read more »

Mature Caucasian woman sat at a table with coffee and laptop while making notes on paper
Investing Articles

I’d build a second income for £3 a day. Here’s how!

Our writer thinks a few pounds a day could form the foundation of a growing second income. Here's how he'd…

Read more »

Investing Articles

How I’d invest my first £9,000 today to target £36,400 a year in passive income

This writer reckons one cheap FTSE 100 dividend stock with good growth prospects could be a solid choice for a…

Read more »

Concept of two young professional men looking at a screen in a technological data centre
Investing Articles

Betting on the future: 2 exciting growth stocks I’ve been buying for my portfolio

Edward Sheldon believes that these two growth stocks have the potential to generate huge returns for his portfolio over the…

Read more »

Group of young friends toasting each other with beers in a pub
Investing Articles

5 amazing investments for a megabucks second income!

We'd all love a second income, but some of us just don't know where to look. Dr James Fox details…

Read more »

Young mixed-race couple sat on the beach looking out over the sea
Investing Articles

Here’s how I’d aim for £190 in weekly income from a Stocks and Shares ISA

Christopher Ruane explains the approach he’d take trying to earn almost a couple of hundred pounds a week from his…

Read more »

Investing Articles

What’s going on the IAG share price? It’s so volatile!

The IAG share price has demonstrated plenty of volatility in recent months. Dr James Fox takes a closer look at…

Read more »