2 cheap UK shares to buy right now!

Recent market volatility means many top stocks now trade at rock-bottom prices. Here are two cheap UK shares I’m thinking of investing in right now.

| 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.

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

Image source: Getty Images.

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 think NCC Group (LSE: NCC) is a great, cheap UK share to buy as the problem of cybercrime accelerates.

The prospect of a sharp economic slowdown threatens to harm business investment in all, or most, areas. This includes the amount spent on reinforcing IT systems from external threats.

Yet NCC Group could hold up strongly, in my opinion, given the huge costs a company faces if an attack happens. This is an area in which corporate spending could in fact remain pretty solid.

Government statistics show that 39% of British companies were hit by a cyber attack in the 12 months to March. This resulted in an average cost of £4,200. For just medium- and large-sized businesses the figure rose to a whopping £19,400.

A cheap UK growth share

NCC provides a range of cyber-security-related services such as creating security assessments and producing software escrow agreements. And City analysts expect earnings here to keep growing strongly over the medium term.

NCC’s earnings are predicted to increase 18% and 10% in the financial years to May 2023 and 2024 respectively. This follows the 15% increase brokers think the business will report in the outgoing fiscal year.

Pleasingly, these forecasts mean the company looks exceptionally cheap at current prices. At 207p per share, NCC trades on a forward price-to-earnings growth (PEG) ratio of 0.9. A reading below 1 suggests that a stock could be trading below value.

Finally, I also like this cheap UK share because — unlike many other tech shares which invest heavily for growth — NCC also provides a dividend to investors.

For the soon-to-begin financial year and fiscal 2024, yields here sit at a healthy 2.3% and 2.5% respectively.

Retail therapy

The near-term outlook for many UK retail shares is darkening as the cost of living crisis worsens. But it’s my opinion that niche retailers like fashion business N Brown Group (LSE: BWNG) will be better placed to weather the shock.

Through its Jacamo and Simply Be brands, N Brown is a major player in the fast-growing ‘plus-size’ market. What’s more, its JD Williams division caters to shoppers within the more affluent 45-65 age range. This could be a particularly useful profit boosting division for these tough times.

N Brown’s latest financials last week show how resilient trading its business model is. Sales at the ‘strategic brands’ mentioned above rose 9.9% in the 12 months to February.

A top penny stock

Despite the problem of intense competition, I think N Brown’s niche offer makes it a great buy. And especially so at current prices of 32.2p per share.

City analysts think the penny stock’s earnings will fall 17% year-on-year. This leaves the business trading on a super-low forward price-to-earnings (P/E) ratio of 5.6 times.

I think this valuation fails to reflect N Brown’s long-term profits potential as its key demographic markets grow sharply. I think the retailer is a cheap UK share worth serious attention today.

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 NCC. 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

Warren Buffett at a Berkshire Hathaway AGM
Growth Shares

3 things I learnt from Warren Buffett’s annual shareholder letter

Jon Smith reads the letter Warren Buffett just put out and provides his key thoughts and summary of the investing…

Read more »

View over Old Man Of Storr, Isle Of Skye, Scotland
Investing Articles

2 high-yield FTSE 250 shares I’d buy now – and 1 that I wouldn’t

This writer considers a trio of FTSE 250 shares with attractive dividend yields and explains which two he would buy…

Read more »

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

In a cyclical downturn, is there a buying opportunity in Croda shares?

With a positive sales outlook for 2024, is there a buying opportunity in Croda shares ahead of a potential recovery…

Read more »

Shot of a senior man drinking coffee and looking thoughtfully out of a window
Investing Articles

£20,000 in savings? Here’s how I’d aim for £14,710 a year in passive income

With spare savings, this Fool would start generating passive income for a more comfortable retirement. Here he details how he'd…

Read more »

Passive income text with pin graph chart on business table
Investing Articles

£9,000 in savings? Here’s how I’d try to turn that into £581 a month of passive income

Relatively small investments in high-yielding stocks can grow through the power of dividend compounding into significant passive income.

Read more »

Photo of a man going through financial problems
Investing Articles

These are the FTSE’s biggest dogs over the last year!

The FTSE 100 has fallen far behind other major market indices over the past 12 months. However, these three sliding…

Read more »

Investing Articles

My top 3 stock market lessons from the Nvidia volcano eruption

Can we learn anything from the explosive rise in Nvidia's share price? Here are three Foolish reflections from this stock…

Read more »

Abstract 3d arrows with rocket
Investing Articles

Is boohoo the best near-penny stock to buy today?

This Fool asks why the boohoo share price has collapsed and whether now might be a good time to invest…

Read more »