These penny stocks have rocketed today! Here’s why I’d buy them

These cheap UK shares are soaring in value in start-of-week business. Here’s why I think they could be great penny stocks to buy.

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These UK penny stocks have soared higher in Monday trade. Here’s why I’d add them to my stocks portfolio right now. 

Off the chain

The Renold (LSE: RNO) share price has boomed on Monday following a positive reception to latest trading numbers. At 24p per share, the penny stock was last trading 23% higher from last week’s close.

Business is booming at Renold as the economic recovery takes hold. The industrial chain and transmission products maker said that “the strong momentum experienced in the fourth quarter of the last financial year has been maintained in the new financial year.” This meant that revenues clocked in at £62.5m for the four months to 31 July, up 13.6% year-on-year. At constant exchange rates, sales were up a fraction below 20% from the corresponding 2020 period.

Renold racked up orders worth £79.7m, too, up 61.3% on an annual basis or 69.3% at stable exchange rates. Moreover, it said that its total order book stands at all-time highs of £70.5m right now.

Business development to success and FTSE 100 250 350 growth concept.

As a consequence of this strong trading Renold said that it expects adjusted operating profit for the half- and full-year “to be higher than both market expectations and the equivalent prior year period.” However, it added that supply chain disruptions, allied with rising raw materials and transport costs, have been causing some uncertainty in its markets.

Despite today’s share price jump, Renold still offers decent value for money on paper. The AIM company trades on a forward price-to-earnings growth (PEG) ratio of 0.5 (a figure below 1 suggests that stock could be undervalued by the market). I therefore think this UK share could be a great way to play the steady rebound in the world economy. Its products are used in a wide variety of applications such as on food production lines, on underground railway trains and on a broad selection of construction equipment.

Another soaring penny stock

Abingdon Health (LSE: ABDX) is another UK penny stock that’s soaring in start-of-week trade. At 70p per share the healthcare play is trading 13% higher on the day following news concerning its coronavirus antibody tests.

Abingdon said that its BioSURE Covid-19 IgG Antibody Self Test had been launched today. This follows the signing of an manufacturing agreement with rapid diagnostic test manufacturer Biosure Limited late last month. Abingdon is the exclusive manufacturer of the tests at its sites in York and Doncaster following a pilot production run.

Of course Abingdon isn’t the only UK share involved in the manufacture of Covid-19 equipment. In fact competition in this market is intense and threatens to get worse. But as I explained recently, the public health emergency is tipped to run on for the next few years at least, perhaps even indefinitely. So I think this penny stock could still enjoy meaty profits growth in the short-to-medium term at a minimum. Like Renold, I’d happily buy this cheap UK share right now.

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 considered so you should 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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