I’m on the lookout for some of the best cheap stocks to buy for my Stocks and Shares ISA this month. Here are several that have caught my attention today.
#1: One of the best food-to-go stocks to buy
I think food-to-go manufacturer Bakkavor Group is a great value stock to buy today. City analysts believe this UK share’s earnings will rise 20% in 2021. This leaves the company trading on a forward price-to-earnings growth (PEG) ratio of 0.8. Any reading below 1 suggests that a UK share is undervalued by the market.
I think it’s a great buy despite the threat posed by the rise of homeworking in the post-coronavirus era, an issue that could have a serious impact on the takeaway lunch market. The company is the leading industry player on these shores, while it’s also rapidly improving its footprint in the hot US and China growth markets.
#2: Making money from e-commerce
I think getting exposure to the booming e-commerce market is a great idea. And one low-cost way to do this is by investing in Macfarlane Group. This UK share makes packaging products and labels, products that are obviously essential in the distribution of goods from company to customer.
It’s true that soaring raw material costs is casting a cloud over profit levels at this small-cap. But I think it remains a great buy as e-commerce volumes look set to keep growing at breakneck speed. Macfarlane is expected to enjoy a 38% earnings increase this year. This results in a PEG multiple of just 0.4.
#3: An emerging market’s mammoth
City analysts are tipping explosive profits growth at Stock Spirits Group too. They think earnings at the small cap — which sells alcoholic beverages in emerging European markets such as Czechia and Poland — is expected to see earnings soar 117% this fiscal year as the hospitality sector gradually recovers following Covid-19 lockdowns.
This leaves the firm trading on a forward PEG readout of 0.1. I think this could be one of the best stocks to buy to ride rising spirits demand in Central and Eastern Europe. Though do remember any upsurge in coronavirus cases would take another meaty bite out of revenues.
#4: Near-7% dividend yields!
I think PayPoint could be one of the best cheap stocks to buy for all-round value. City brokers reckon the company — which builds highly-complex retail terminals for convenience stores — will enjoy a 132% year-on-year earnings improvement this fiscal year. Consequently, it changes hands on a forward PEG ratio of 0.1. What’s more, PayPoint boasts a mighty 6.8% dividend yield at current prices.
I expect the business to generate enormous profits as the rollout of its cutting-edge PayPoint One systems continues. Though it’s important to remember that any technological failures could be catastrophic for vendors and this could hit future orders hard.
Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended PayPoint. 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.