I think the following UK shares are some of the best value stocks to buy in August.
6.5% dividend yields
Centamin offers plenty of all-round value to UK share investors. The gold producer trades on a forward price-to-earnings growth (PEG) multiple of just 0.6. The FTSE 250 stock also company carries a mighty 6.5% dividend yield too.
But I wouldn’t buy Centamin just because I think the outlook for gold prices remains pretty enticing. I’d load up on the mining share because of its ambitious plans to raise production. It plans to produce up to 500,000 ounces of gold per year from 2024. By comparison, output of 400,000-430,000 ounces is tipped for this year.
I think this is a top stock to buy, despite the threat that gold prices could come under pressure if central banks taper their monetary support quicker than anticipated.
The retail giant
Wickes Group is another UK stock I think could be too cheap to miss. City analysts think earnings here will rise 36% this fiscal year, resulting in a PEG ratio of 0.5. A reading below 1 suggests a stock could be undervalued by the market.
I think this DIY and building products retailer could make big profits, thanks to the strong state of the British construction industry. It also stands to benefit from the DIY craze forged during the depths of Covid-19 lockdowns.
I’d buy it even though supply chain issues could potentially blow earnings projections off course.
The Berkeley Group is a value share from the FTSE 100 I’m watching closely. Not only does the housebuilder trade on an undemanding forward price-to-earnings (P/E) ratio of 14 times. But a 5.4% dividend yield for this year destroys the broader Footsie prospective average of 3.1%.
I think this UK share should thrive as the mortgage product war makes buying more and more affordable for first-time buyers (the number of 5% deposit mortgages has rocketed more than 1,200% since January).
I’m also backing Berkeley’s sales to keep soaring, due to ongoing government support via Help to Buy. But bear in mind that soaring construction product costs could seriously hit profits growth.
A cheap UK stock I already own!
I think bricks producer Ibstock is another great way to play the housebuilding boom. Indeed, this is a UK share I already own in my Stocks and Shares ISA. I’m tipping demand for its product to rocket as the government takes steps to supercharge home creation (a target of 300,000 new homes per year has been laid out).
In fact, Ibstock has been taking measures to capitalise on this likely demand boom by boosting its manufacturing capabilities. Its new Aldridge factory with an annual capacity of 115m bricks is planned to start producing in late 2023.
I think this is a top-value stock for me to buy more of, despite the risk that a fresh upsurge in coronavirus cases could cause plans for the new factory to be put on hold again.
Meanwhile, it trades on a forward PEG of just 0.1.
Royston Wild owns shares of Ibstock. The Motley Fool UK has recommended Ibstock. 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.