The Motley Fool

3 of the best cheap UK shares to buy in September

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.

Image of person checking their shares portfolio on mobile phone and computer
Image source: Getty Images.

Used-car retailer Motorpoint Group (LSE: MOTR) is enjoying a roaring trade as the UK economy bounces back. Late July’s most recent trading update revealed that sales hit record levels in April and May. I reckon the UK small-cap share could continue to pull up trees too, as supply problems in the new car market boost demand for pre-owned vehicles.

Society of Motor Manufacturers and Traders data shows used car sales rocketed 108.6% year-on-year in the second quarter. Sales were also up 6.6% from the second quarter of 2019. It’s perhaps no wonder then that City analysts think Motorpoint’s annual earnings will rise 85% this fiscal year (ended March).

One Killer Stock For The Cybersecurity Surge

Cybersecurity is surging, with experts predicting that the cybersecurity market will reach US$366 billion by 2028more than double what it is today!

And with that kind of growth, this North American company stands to be the biggest winner.

Because their patented “self-repairing” technology is changing the cybersecurity landscape as we know it…

We think it has the potential to become the next famous tech success story. In fact, we think it could become as big… or even BIGGER than Shopify.

Click here to see how you can uncover the name of this North American stock that’s taking over Silicon Valley, one device at a time…

This leaves the company trading on a forward price-to-earnings growth (PEG) ratio of just 0.3. A reading below 1 suggests a stock could be undervalued by the market. I think this makes the company a great buy despite the ongoing threat Covid-19 poses to its operations.

Another cheap UK share I’d buy

I think NCC Group (LSE: NCC) is another cheap UK share that could be too good to miss. City analysts think earnings here will rise 37% this fiscal year, resulting in a bargain-basement PEG multiple of 0.7.

Demand for the FTSE 250 firm’s cyber security services are rocketing right now as the rise of e-commerce and flexible working encourages companies to invest more in protecting their IT systems. Indeed, the business recently upgraded its forecasts for the last financial year (ended May),  thanks to a strong end to the period.

I’m expecting more encouraging news when full-year results are released on 14 September. The UK IT services share is up a whopping 62% over the past 12 months. I think this is a great stock to buy today despite the threat of larger competition from US giants Microsoft and McAfee to the FTSE 100’s Avast.

Raising the roof

News coming out of the UK housing market has been a little less encouraging over the past few weeks. Latest data from Halifax showed house price growth slow sharply in July as the tapering of the Stamp Duty holiday kicked in. The property tax is due to end completely in October and home prices could theoretically take a colossal hit.

This is a particular worry for UK shares like FTSE 250-quoted Redrow (LSE: RDW) as rising labour and raw material prices are already hitting profit margins. I think however, the threat of a heavy deterioration in the property market are baked into this housebuilder’s valuation. An expected 14% earnings rise this fiscal year (to June 2022) leaves it trading on a PEG ratio of 0.4.

But I expect the UK homes market to remain strong. This is because favourable lending conditions and huge government support for first-time buyers should remain in place. And I’d buy Redrow before full-year results come out on 15 September. The company said turnover at its regional homes business had beaten expectations last time it updated the market in June.

“This Stock Could Be Like Buying Amazon in 1997”

I'm sure you'll agree that's quite the statement from Motley Fool Co-Founder Tom Gardner.

But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.

What's more, we firmly believe there's still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.

And right now, we're giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool.

Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge!

Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Royston Wild has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Microsoft. The Motley Fool UK has recommended Avast Plc, Motorpoint, NCC , and Redrow. 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.

Our 6 'Best Buys Now' Shares

Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.

So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee.

Simply click below to discover how you can take advantage of this.