I’m searching for the best cheap stocks to buy for 2022. Here are three sub-£3 shares on my watchlist today.
Spire Healthcare (trades at 255p)
Growing stress on the NHS bodes well for private healthcare providers such as Spire Healthcare. This particular company operates dozens of private hospitals and clinics and it’s doing a roaring trade as waiting lists for free treatment grow. Latest financials showed revenues up 39% year-on-year in the six months to June, and up 14% from the corresponding 2019 period too.
NHS waiting lists now stand at a record high of 6m. Patient numbers are tipped to keep rising too as soaring Omicron infections cause further cancellations of non-essential medical procedures. So I’m tipping the number of self-pay and insured patients passing through Spire’s doors to keep rising. I’d buy this cheap UK share, even though a worsening shortage of nursing staff could push costs northwards.
Airtel Africa (trades at 137p)
Africa’s economies are some of the fastest-growing on the planet. This offers a world of opportunity for UK share investors, and Airtel Africa is one stock I’m considering buying today. This business offers telecoms and mobile money services in sub-Saharan countries where wealth levels are rising rapidly and low product penetration leaves massive sales opportunities over the next decade and more.
Revenues at Airtel Africa soared 28% in the six months to September, at constant currencies, latest financials showed. I’d buy this near-penny stock even though its highly-regulated operations leave it in danger of profits-harming action from lawmakers.
M&G (trades at 207p)
Financial services colossus M&G is one of the biggest yielders on the FTSE 100. It carries a monster 9.2% dividend yield for 2022 and its strong cash generation means big shareholder payouts could become the norm. As well, M&G’s capital-rich balance sheet means it could continue to embark on earnings-boosting acquisition action (it recently snapped up financial adviser Sandringham Financial Partners for an undisclosed sum).
I think demand for M&G’s savings and investment services will remain strong. It’s my belief that historically-low interest rates will remain in place, meaning people will continue to need expert advice to get a decent return on their money. A word of warning though, M&G will have to peddle extremely hard to thrive in this ultra-competitive industry.
ConvaTec Group (trades at 191p)
I think Convatec Group could be a perfect cheap stock for these uncertain times. Forget about soaring inflation, the ongoing coronavirus crisis, and the threat of a Chinese property sector collapse. The colostomy bags, wound treatments and cannulas this medical equipment manufacturer provides will remain in high demand in 2022, whatever happens. This should give supreme peace of mind to even the most nervous investor.
I think ConvaTec could provide me with excellent long-term returns as well. A growing global population and rising healthcare investment in emerging regions should drive revenues steadily higher here, in my opinion. I’d buy the business even though a high-profile product failure could prove disastrous for future customer orders.
