Best stocks to buy: 4 UK shares that cost less than £3!

I’m on a quest to find low-cost UK shares to buy for 2022 and beyond. Here are some of the best cheap stocks on my radar right now.

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.

Image of person checking their shares portfolio on mobile phone and computer

Image source: Getty Images.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

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.

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 assessed. Consider taking independent financial advice.

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Airtel Africa Plc. 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

Mature couple at the beach
Investing Articles

6 stocks that Fools have been buying!

Our Foolish freelancers are putting their money where their mouths are and buying these stocks in recent weeks.

Read more »

Black woman using loudspeaker to be heard
Investing Articles

I was right about the Barclays share price! Here’s what I think happens next

Jon Smith explains why he still feels the Barclays share price is undervalued and flags up why updates on its…

Read more »

Investing Articles

Where I’d start investing £8,000 in April 2024

Writer Ben McPoland highlights two areas of the stock market that he would target if he were to start investing…

Read more »

View of Tower Bridge in Autumn
Investing Articles

Ahead of the ISA deadline, here are 3 FTSE 100 stocks I’d consider

Jon Smith notes down some FTSE 100 stocks in sectors ranging from property to retail that he thinks could offer…

Read more »

Young female business analyst looking at a graph chart while working from home
Investing Articles

Why I think Rolls-Royce shares will pay a dividend in 2024

Stephen Wright thinks Rolls-Royce shares are about to pay a dividend again. But he isn’t convinced this is something investors…

Read more »

Investing Articles

1 of the best UK shares to consider buying in April

Higher gold prices and a falling share price have put this FTSE 250 stock on Stephen Wright's list of UK…

Read more »

Person holding magnifying glass over important document, reading the small print
Investing Articles

The market is wrong about this FTSE 250 stock. I’m buying it in April

Stephen Wright thinks investors should look past a 49% decline in earnings per share and consider investing in a FTSE…

Read more »

Black father and two young daughters dancing at home
Investing Articles

1 FTSE 250 stock I own, and 1 I’d love to buy

Our writer explains why she’s eyeing up this FTSE 250 growth phenomenon, and may buy more shares in this property…

Read more »