2 penny stocks to buy

I’m searching for the best UK penny stocks to buy for my investment portfolio. Here are two great low-cost shares I’m considering buying.

| More on:

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.

It’s true that cheap UK shares like penny stocks can be prone to extreme share price volatility. But this is not something that puts me off investing in such low-cost stocks. This is because I buy UK shares based on what returns I think I’ll make over the long term. Over this sort of timeframe any quality stock — regardless of the initial purchase price — has a great chance of rising strongly in value. Former US penny stock Apple is a perfect example of this.

With this in mind here are two top UK stocks on my radar today.

5 Stocks For Trying To Build Wealth After 50

One notable billionaire made 99% of his current wealth after his 50th birthday. And here at The Motley Fool, we believe it is NEVER too late to start trying to build your fortune in the stock market. Our expert Motley Fool analyst team have shortlisted 5 companies that they believe could be a great fit for investors aged 50+ trying to build long-term, diversified portfolios.

Click here to claim your free copy now!

A top penny stock for the travel recovery

Airlines like Ryanair Holdings (LSE: RYA) aren’t out of the woods just yet. Covid-19 infection rates continue to rise, after all. And travel restrictions in its European territories could remain in effect or possibly become even more restrictive.

However, the discussion of major changes to Britain’s travel rules by ministers today has improved the picture greatly for the business. As I’ve noted before, I believe Ryanair has enough financial strength to survive a prolonged period of tough travel regulations. But today’s reports (if confirmed) mean seriously-good news for its near-term profits outlook.

I’d buy Ryanair shares because of the bright outlook for the budget airline sector for the next decade at least. It’s a market in which the Irish flyer will enjoy much-reduced competition following the Covid-19 crisis. And Ryanair is investing heavily to make the most of the opportunity. Yesterday it announced plans to carry 225m passengers a year by 2026. That’s up 25m from its prior target.

The main event

Arena Events Group (LSE: ARE) also faces significant danger given the recent resurgence in Covid-19 cases. But as things stand, current government regulations are allowing the entertainment sector to gradually get back on its feet.

And this is good news for this particular penny stock, one that provides large temporary structures like grandstands, fences and ice rinks (along with other items like catering facilities, bars and furniture) to leisure and sporting events. Like Ryanair, Arena Events Group also has strong financial reserves to fall back on in case a worsening coronavirus crisis affects its operations. In July it felt confident enough to pay back a loan from major shareholder Lombard Odier Investment Management early.

Renting out equipment for events is a highly-competitive industry. But I’m encouraged by Arena Events’ good record of securing multi-year contracts with its clients to offset this problem. Indeed, in recent weeks it’s signed a deal to provide work for a division of golf’s PGA Tour until the middle of 2023. It also sealed “a multi-million pound contract” to provide one of the venue clusters at the XXII Commonwealth Games in Birmingham in 2022. Like Ryanair, I’d buy this penny stock today and aim to hold it for the long haul.

Inflation Is Coming: 3 Shares To Try And Hedge Against Rising Prices

Make no mistake… inflation is coming.

Some people are running scared, but there’s one thing we believe we should avoid doing at all costs when inflation hits… and that’s doing nothing.

Money that just sits in the bank can often lose value each and every year. But to savvy savers and investors, where to consider putting their money is the million-dollar question.

That’s why we’ve put together a brand-new special report that uncovers 3 of our top UK and US share ideas to try and best hedge against inflation…

…because no matter what the economy is doing, a savvy investor will want their money working for them, inflation or not!

Best of all, we’re giving this report away completely FREE today!

Simply click here, enter your email address, and we’ll send it to you right away.

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Apple. The Motley Fool UK has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. 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.

More on Investing Articles

University graduate student diploma piggy bank
Investing Articles

Should I be concerned about the windfall tax for my BP shares?

What does the new UK windfall tax mean for the BP share price? Michelle Freeman digs into the details to…

Read more »

Buffett at the BRK AGM
Investing Articles

What Warren Buffett’s wisdom and investing in stocks will teach you about life

Investing is a journey of self-discovery. So what will stocks and the words of legendary investor Warren Buffett teach you…

Read more »

Smiling senior white man talking through telephone while using laptop at desk.
Investing Articles

5 ‘no-brainer’ income stocks to buy today!

Amid soaring inflation, I'm looking at these income stocks, offering big yields, to grow my portfolio.

Read more »

Trader on video call from his home office
Investing Articles

How I’d buy the dip in quality UK stocks with £750

Jon Smith explains the concept of buying the dip, and talks through the UK stocks he's going to buy at…

Read more »

Woman looking at a jar of pennies
Investing Articles

5 UK penny shares to buy with £5,000 today

It's hard to remember a time when there were as many tempting penny shares around as now. Here are five…

Read more »

man in shirt using computer and smiling while working in the office
Investing Articles

The Scottish Mortgage share price keeps falling. Should I buy?

The Scottish Mortgage share price has collapsed from its all-time high in little more than six months. Is it now…

Read more »

UK money in a Jar on a background
Investing Articles

Value investing isn’t dead! My top stocks to buy as inflation hits 9%

As value investing principles come back into fashion, Andrew Mackie looks at the current backdrop and shares what he's investing…

Read more »

Windmills for electric power production.
Investing Articles

Which FTSE 100 shares would I buy to offset higher fuel bills?

Rishi Sunak unveiled a windfall tax this week, hitting shares of energy firms, and especially oil & gas producers. But…

Read more »