2 of the best penny stocks to buy for 2022!

I’m searching for the best penny stocks to buy for 2022. Here are two ultra-cheap UK shares I’d snap up to hold for next year and beyond.

| 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.

Lady researching stocks

Image source: Getty Images.

I already have exposure to UK real estate through the shares I own in Tritax Big Box REIT. I’m expecting demand for its warehouse and logistics buildings to soar as e-commerce clicks through the gears. I’m convinced that the student accommodation property sector could also help me make a stack of cash. It’s why I think Empiric Student Property (LSE: ESP) could be one of the best penny stocks to buy for my portfolio.

A report by the National Union of Students illustrates why the likes of Empiric might be a brilliant purchase for me. A shortage of new beds means that the average rent for purpose-build student accommodation has rocketed 61% over the past decade. An average cost of £7,374 per year in 2021/22 is also up 16% from pre-pandemic levels.

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!

Latest data on student enrolments suggests that accommodation will remain scarce, too, thus keeping rents moving northwards. University clearing service UCAS has earlier said total applications in this academic period are up more than 8% year-on-year.

Profits at Empiric and its peers could suffer if applicants from the EU continue to fall post-Brexit. But all things considered I think the accommodation provider is an excellent penny stock for me to buy.

A golden era?

I think Greatland Gold (LSE: GGP) is another top penny stock for me to buy. Precious metals prices remain in a broad holding pattern but I believe an environment of high inflation could send them spiralling higher. Forecasters at Société Générale think gold will trade at around $1,900 per ounce by the second quarter of 2022. That’s up around 130 bucks from current levels.

With key inflation readings recently surpassing analysts’ expectations, though, I think there’s a good chance gold could perform better than some think. The rate of price rises are already pretty hair raising: consumer price inflation in the US hit 6.8% in November. That’s the highest reading for 40 years.

Another top penny stock I’d buy

I wouldn’t just buy Greatland Gold because of the bright near-term outlook for gold values, though. I’m also encouraged by recent news from the miner concerning exploration work at its Haveiron gold-copper project. Fresh drilling work at the mine in Western Australia revealed “significant” mineralisation in 19 of the 24 drilled holes. A $16m share placing last month gives the penny stock plenty of financial clout to develop the mine as well.

I’m aware that any setbacks with bringing Haveiron online would have a significant impact on Greatland Gold’s revenues. It could also have massive implications on overall costs. Considering that the business isn’t expected to turn a profit this financial year (to June 2022) this could prove particularly spooky for investors and prompt a sharp share price reversal.

Still, it’s my opinion that the potential rewards at Greatland Gold outweigh these risks. The bright outlook for gold prices and the quality of its Australian assets makes the miner a worthy buy in my opinion. Just like Empiric Student Property, I’d happily buy the company today for 2022.

5 Stocks For Trying To Build Wealth After 50

Markets around the world are reeling from the coronavirus pandemic…

And with so many great companies still trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.

But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be a daunting prospect during such unprecedented times.

Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down…

You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm.

That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away.

Click here to claim your free copy of this special investing report now!

Royston Wild owns Tritax Big Box REIT. The Motley Fool UK has recommended Tritax Big Box REIT. 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

macro shot of computer monitor with FTSE 100 stock market data in trading application
Investing Articles

Here’s a FTSE 250 stock to buy to benefit from the construction boom!

Jabran Khan details a FTSE 250 stock that could be primed to benefit from the infrastructure and construction boom.

Read more »

Young woman working at modern office. Technical price graph and indicator, red and green candlestick chart and stock trading computer screen background.
Investing Articles

Is the Royal Mail share price a buying opportunity?

With a 6% dividend yield and a price-to-earnings ratio of 3, is the Royal Mail share price in buying territory?…

Read more »

Scene depicting the City of London, home of the FTSE 100
Investing Articles

3 FTSE 100 shares! Should I buy them?

I'm searching for the best FTSE 100 stocks to buy following recent market volatility. Are these blue-chip UK shares too…

Read more »

macro shot of computer monitor with FTSE 100 stock market data in trading application
Investing Articles

Should I buy one of the cheapest shares on the FTSE 100 index?

This Fool explores one of the cheapest stocks on the FTSE 100 index by share price and decides if he…

Read more »

Asian Indian male white collar worker on wheelchair having video conference with his business partners
Investing Articles

With trading suspended, where could the Eurasia Mining (LON:EUA) share price go next?

This morning, the EUA share price was suspended pending an announcement - so could improving sales send the share price…

Read more »

Hand holding pound notes
Investing Articles

Are the FTSE 100’s top income stocks a bargain?

The FTSE 100 is renowned for its value and dividend stocks. So, are the index's top income stocks worth a…

Read more »

Compass pointing towards 'best price'
Investing Articles

Scottish Mortgage shares have slumped 40%. Time to buy now?

Scottish Mortgage Investment Trust (LON: SMT) shares have rewarded shareholders well in recent years. I'm thinking of buying now they're…

Read more »

Mindful young woman breathing out with closed eyes, calming down in stressful situation, working on computer in modern kitchen.
Investing Articles

3 recession stocks I’d buy in a hurry

With the economic outlook getting worse, our writer highlights a trio of recession stocks he would consider buying for his…

Read more »