Cheap UK shares to buy now for 2030 and beyond

These cheap UK shares could benefit from several tailwinds over the next decade, driving earnings growth and a re-rating of the shares.

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.

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 am always looking for cheap UK shares to buy for my portfolio. And I think now more than ever it is crucial to consider valuation when analysing securities. 

Indeed, with interest rates set to continue rising and the cost of living also growing, the outlook for the economy is becoming more uncertain by the day. 

By focusing on valuation, I believe I can avoid the market’s most expensive equities, which are likely to suffer the most if economic growth starts to slow. Highly-valued growth stocks may quickly fall out of favour if their development does not live up to expectations.

This is just what is happening over the pond. Shares in companies like Peloton and Zoom have plunged 80% and 50% respectively over the past 12 months. Their growth has not lived up to the market’s lofty expectations. 

With that in mind, here are a handful of cheap UK shares that I would buy for my portfolio right now. I believe these firms have the qualities required to continue to grow over the next decade and beyond. 

Cheap UK shares

When I am looking for shares to buy for the long term, I try to focus on growth themes that can act as tailwinds for underlying businesses. 

The UK car market is only set to expand over the next decade. With this tailwind in place, I think the outlook for Vertu Motors and Pendragon is highly encouraging. What’s more, right now, these companies are also benefiting from surging second-hand car values here in the UK. 

The stocks are both selling at a forward price-to-earnings (P/E) multiple of less than 10. That looks cheap compared to their growth potential. 

But some challenges that these and the other companies outlined in this article could face include rising costs and a fall in demand due to the cost of living crisis. 

Construction sector 

The outlook for the UK construction industry also appears incredibly bright. The government is ramping up infrastructure spending, and this growth, coupled with expanding demand for new properties, could provide a windfall for builders and infrastructure providers over the next decade. In my view, Morgan Sindall and Balfour Beatty are some of the best UK shares to play this theme. 

Both of these companies have the economies of scale required to capitalise on the growth in the sector and keep costs low. Despite these qualities, shares in both businesses appear undervalued, considering their potential over the next decade. The shares are selling at a forward P/Es of less than 12 at the time of writing. 

Talking of building, I think homebuilders like Bellway could also be an excellent investment for the next decade. With the demand for new homes only set to rise over the next few years, the company looks to be good value, with the shares selling at a P/E of just 7.8. 

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.

Rupert Hargreaves has no position in any of the shares mentioned. The Motley Fool UK has recommended Peloton Interactive, Pendragon, Vertu Motors, and Zoom Video Communications. 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

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 »

View of Tower Bridge in Autumn
Investing Articles

The FTSE 100 is closing in on 8,000 points! Here’s what I’m buying before it’s too late!

As the FTSE 100 keeps gaining momentum, this Fool is on the lookout for bargains. Here's one stock he'd willingly…

Read more »

Investing Articles

3 ideas to help investors aim for a million-pound Stocks & Shares ISA

The UK has a growing number of Stocks and Shares ISA millionaires, and this plan may be one of the…

Read more »

Illustration of flames over a black background
Investing Articles

2 red-hot UK growth stocks to consider buying in April

These two growth stocks are performing well, but can they continue to deliver for investors through 2024 and beyond?

Read more »

Charticle

Is JD Sports Fashion one of the FTSE 100’s best value stocks? Here’s what the charts say!

The JD Sports Fashion share price remains a wild ride during the first quarter. Could it be one of the…

Read more »