I dont think investors like me need to spend a fortune to build a five-star stocks portfolio. Let me give you a flavour of some top, dirt-cheap UK shares I’m considering buying today.
#1: Pets at Home
Pets at Home is a great example of brilliant shares that can be bought without a premium rating. At 469p, the animalcare retailer trades on a forward price-to-earnings growth (PEG) ratio of just 0.5. A reading below 1 suggests that a share could be undervalued by the market.
Pets at Home is a one-stop shop for everything your furry friend might need. It has a market-leading position and has boosted its offering with expansion into vet services in recent years. Despite the problem of intense competition, I’m expecting it to thrive as the broader animalcare market takes off. Mordor Intelligence thinks the British petcare industry will grow at an annualised rate of 4.5% over the next five years.
#2: STV Group
The strong turnaround in advertising spending is powering the sales recovery over at STV Group. Revenues at the broadcaster rocketed 35% in the first six months of 2021. And, pleasingly, the post-coronavirus spike is expected to continue into next year, driven in large part by the video-on-demand (VoD) sector. Statista reckons spending here will soar 13.9% in 2022.
STV has spent large sums bulking up its VoD proposition in recent years, putting it in the box seat to exploit this upsurge. I also think the huge investment in its STV Player will help deliver long-term growth. However, it may need to paddle hard to beat off the competition posed by US streaming giants like Netflix and Amazon’s Prime platform. STV shares go for 315p a pop.
#3: Primary Health Properties
I’m also thinking of adding Primary Health Properties to my portfolio to add a bit of muscle. This UK share invests in and operates primary healthcare facilities across the country. So while it exposes investors to acquisition risks like disappointing returns and unexpected costs, I think the defensive nature of its operations make it worthy of serious attention.
I’d also buy Primary Health Properties because of its above-average dividend yield. At 152p per share, the yield sits at a meaty 4%.
I think door and window parts manufacturer Tyman could experience strong profits growth over the next decade. Rising population levels mean that housebuilding activity will inevitably continue to climb, fuelling demand for Tyman’s products. Like-for-like revenues at the firm shot 10% higher between January and June, versus the same period in 2019.
I also like this cheap UK share because its broad geographic footprint helps insulate profits at group level from tough trading conditions in one or two markets. I think Tyman’s a top bargain buy, despite the problem of severe cost inflation and supply chain strains. At 388p, it trades on a forward PEG ratio of just 0.7.