The 5 April deadline is fast approaching for this year’s ISA allowance, and I’m looking for some of the best UK shares to buy at low cost. Here are three cheap British stocks I’m thinking of adding to my Stocks and Shares ISA.
#1: A brilliant retailer
People are spending more and more money on their pets and UK shares like Pets at Home are reaping the benefits. This particular retailer sells a broad range of products to keep our animals happy and healthy. It offers veterinary and grooming services as well. And so it’s known as the go-to destination for all of our pets’ needs is a huge selling point. This offers plenty of cross-selling opportunities for the retailer too.
That’s not to say Pets at Home doesn’t face competitive pressures of course. E-tail giant Amazon for instance sells many of the same product categories as the British retailer. It also offers the same sort of subscription plans on many pet-related products.
That’s a big risk, but I still think Pets at Home’s cheap share price makes it an attractive pick today. It trades on a sub-1 price-to-earnings growth (PEG) ratio of 0.7 for the upcoming financial year beginning April.
#2: A top UK property share
As e-commerce goes from strength to strength, I’m considering buying shares in Urban Logistics REIT as well. Why? Well, this UK share provides small distribution spaces that allow retailers and couriers to get online purchases to their buyers.
The company continues to expand its estate at a lively pace too, making the most of this exploding market. Though there’s always the risk that expanding at the wrong point of the property cycle could harm investor returns.
For the financial year beginning April 2021, Urban Logistics trades on a PEG valuation of 0.5. The property play also offers a mighty 6.3% dividend yield. I think this sort of value is hard to ignore.
#3: A monster stock
I already own Games Workshop Group in my Stocks and Shares ISA. But, at current prices, I’m seriously thinking of adding to my holdings. This other UK retail share trades on a forward PEG multiple of just 0.6 times. I don’t believe this reading reflects the terrific progress the company’s made to expand its international footprint or to embrace e-commerce.
I also don’t think the current valuation sums up its market-leading position in the fantasy wargaming sphere. Not to mention the unrivalled customer loyalty it consequently enjoys.
Of course Games Workshop also comes with risk attached. Global expansion doesn’t come cheap after all, and investment in new territories might not always work out as planned. And because the company sources most of its products abroad, it faces the threat of currency-related headwinds on the bottom line. That said, I still think it’s a compelling buy at recent prices.
