3 cheap UK shares! Time to buy?

I don’t need to spend an arm and a leg to try and build my wealth with British stocks. Here’s a handful of cheap UK shares I think are terrific buys today.

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Investors like me don’t need a fortune to build a rock-solid shares portfolio. There’s no shortage of cheap UK shares that have the capacity to deliver terrific shareholder returns over the long term. A low price today is no indication of what a stock could be worth say a decade from now.

Here are three such low-cost lovelies I’d happily buy myself.

A cheap UK share for tough times

You might not have heard of UP Global Sourcing Holdings (LSE: UPGS). But the odds are pretty high you’ve used one of this company products. This low-cost UK share makes ironing boards, kettles, scales, toasters and other everyday products that can be found around the home.

Its focus on need-to-own goods gives it terrific earnings visibility during economic upturns and downturns. And much-loved brands such as Russell Hobbs and Salter give profits forecasts an extra layer of protection. Although, of course, the company isn’t totally immune to the threat of competition.

At current prices of 214p per share, the small-cap trades on a forward price-to-earnings growth (PEG) ratio of just 0.7. A reading below 1 suggests a UK share could be undervalued by the market.

A top penny stock I’d buy

Record’s (LSE: REC) another cheap UK share that’s high on my watchlist right now. At 84p per share, this penny stock trades on a forward PEG ratio of just 0.3. The currency and derivatives manager has recently slumped in price because investment in its growth strategy has taken a huge bite out of profits.

But there’s a lot to like about this low-cost UK share, in my opinion. Investing in its products and IT systems should pave the way for strong and sustained long-term growth. And right now, assets under management equivalents (AUME) have just struck record highs. City analysts think annual earnings will leap 84% this year alone. I’d buy Record despite the ever-present threat of changing regulations to future profits.

The building products giant

I’m also sorely tempted to splash the cash in Michelmersh Brick Holdings (LSE: MBH) today. As the name suggests, this cheap UK share’s operations centre around making bricks. And it’s doing a roaring trade at the moment, thanks to rocketing demand for newbuild homes in Britain.

What’s more, production at the business has recently outperformed expectations as it’s sought to capitalise on what it calls a “very active” construction market. I expect the homes market to remain strong as low interest rates, government support for first-time buyers, and intense competition among Britain’s lenders should keep the housing market boom going.

Today, Michelmersh trades at 125p per share, leaving a forward PEG ratio of 0.3. I think this makes the brickbuilder a top buy, despite the threat that a fresh economic downturn could pose to building product demand.

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 has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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.

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