3 cheap UK shares (including 2 FTSE 100 stocks) to buy right now!

I’m on the hunt for British stocks offering top value. Here are a few cheap UK shares (including two FTSE 100 heavyweights) I’d buy today.

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I think Somero Enterprises (LSE: SOM) could be a great stock to buy to ride the e-commerce explosion. This cheap UK share manufactures laser-guided machinery used to lay down large areas of concrete. As a consequence I expect demand for its product to balloon as new warehouses and logistics hubs are built to enable companies to reach their customers. This is a segment of the real estate market which is suffering from a huge supply crunch.

City analysts expect Somero Enterprises’ annual earnings to soar 40% in 2021. This leaves the business dealing on a rock-bottom PEG ratio of 0.4. A reading below 1 suggests a stock could be undervalued by the market. I think this makes it a top buy, despite the possibility that a long economic downturn, due to Covid-19, could harm the construction industry and thus revenues at the AIM company.

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7.8% dividend yields!

Admiral Group (LSE: ADM) is a British stock which also offers stunning value. Not only does the FTSE 100 firm trade on a forward PEG ratio of 0.5, this cheap UK share carries a mighty 7.8% dividend yield at current prices too.

2021 has reminded us of the huge risks insurance companies face going forwards as the climate crisis worsens. Events such as wildfires in the Pacific Northwest, record high temperatures in Europe, and flooding in Germany have cost businesses like this an arm and a leg. Swiss Re estimates that natural disasters such as these have cost insurers a staggering $40bn in the first half alone.

That said, could Admiral still be a decent investment for the years ahead? I believe so, as it’s one of the most trusted brands in the British motor insurance space. It’s one that enables it to keep growing profits and thus dividends. What’s more, this cheap UK share is a cash machine (proven by its decision to pay a flurry of special dividends recently). This one quality alone makes the insurer too good to ignore, in my book.

Another top, cheap UK share to buy today

I’m also thinking of buying Polymetal International (LSE: POLY). Like Admiral, it’s a FTSE 100 stock that also offers plenty of spectacular all-round value. The gold miner trades on a forward P/E ratio of 7 times for 2021 and it carries a near-7% dividend yield.

Having exposure to precious metals is a good way to hedge against unforeseen events that can send financial markets crashing. And at current prices, I think Polymetal is an attractive way to go about this.

The outlook for gold prices is strong for the next few years at least, as inflationary fears will likely persist. Signs of rising geopolitical tensions and a long and bumpy economic recovery from Covid-19 could also support prices.

However, it’s worth remembering that problems with pulling gold out of the ground could affect Polymetal’s ability to benefit from fatty bullion prices.

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Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Admiral Group and Somero Enterprises, Inc. 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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