2 top UK stocks that cost less than £1!

Expensive doesn’t always mean exceptional. Here are two UK stocks I think could help supercharge my wealth. Both cost just pennies to buy.

| 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.

Man smiling and working on laptop

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 low-cost UK stocks to buy in December. Here are two perched near the top of my shopping list today.

Green machine

Kingspan (LSE: KGP) shares currently cost less than £1 (they actually trade at 55 euro cents). But the business doesn’t quite fall into penny stock territory.

This UK stock has a mighty market-cap of €10.8bn. And it’s a heavyweight in the field of building insulation, a market which is undergoing rapid growth. The company’s own revenues soared 33% in the nine months to September.

Energy efficiency is becoming critically important as worries over the climate crisis grow. So investment by businesses and governments in green technologies like insulation paneling are steadily rising.

The British government today rolled out a £1bn scheme to help people insulate their homes with grants. It’s a trend seen over the world and one which Kingspan, thanks to its broad geographic wingspan, is well-placed to exploit.

I’m encouraged by the company’s plans to grow further through profits-boosting acquisitions too. It spend €1bn on bolt-on buys between January and September alone.

Near-term sales could suffer as the global economy cools. But I am encouraged by Kingspan’s resilience despite toughening trading conditions. It expects trading profit to jump 10% in 2022 to €830m, it said this month.

Look ahead

Car retailer Lookers (LSE: LOOK) is another cheap UK share on my radar today. The seller of new and used vehicles trades at 77p per share and has a market-cap of just below £300m.

Like Kingspan, deteriorating economic conditions could slap revenues here in the near term. Sellers of big ticket items like automobiles are particularly vulnerable when times get tough.

Lookers may also have to navigate further stock shortages as supply chain issues plague autobuilders. Jaguar Land Rover last week said it will reduce UK output until the spring because of microchip shortages, for example.

But I’d still buy the retailer today owing to its excellent value for money. It currently trades on a forward price-to-earnings (P/E) ratio of 5.2 times and also carries a market-beating 4% dividend yield.

This valuation provides the scope for solid share price gains. Lookers shares actually surged in mid-October after the firm upgraded its full-year profits forecasts and announced a £15m share repurchase programme.

I’m expecting profits here to grow strongly over the next decade as electric vehicle usage soars. ONS data shows that 44% of Britons are ‘likely’ or ‘very likely’ to switch to an all-electric vehicle in that period.

And businesses with a large estate of showrooms plan to benefit particularly strongly as consumers seek face-to-face advice on these new technologies. Lookers operates more than 140 dealerships across the country.

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 no position in any of the shares mentioned. 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

Investing Articles

Penny stocks to consider buying while their prices are this cheap

Some of the penny stocks I've been watching have already climbed above the 100p level. But I see potential in…

Read more »

Mature Caucasian woman sat at a table with coffee and laptop while making notes on paper
Investing Articles

Revealed! One of the hottest growth, value, and dividend shares to buy today

This high-dividend, low-cost company is also one of the London stock market's most exciting growth shares, writes Royston Wild.

Read more »

Investing Articles

£20,000 in savings? Here’s how I’d target a £2,219 monthly passive income with FTSE 100 shares

Investing in FTSE 100 shares can be a great way to turn a regular investment into a life-changing passive income…

Read more »

Investing Articles

These are the most popular 2024 Stocks and Shares ISA picks so far

After a few tough years, it looks like the 2024 Stocks and Shares ISA season is getting off to a…

Read more »

Investing Articles

This FTSE 100 ETF may be the simplest way to become a stock market millionaire

Ben McPoland considers one very straightforward stock market investing strategy that could lead to a million-pound portfolio.

Read more »

Investing Articles

I’d buy 11,220 Legal & General shares for £200 a month in passive income

Our writer considers how much money investors would have to put into Legal & General (LON:LGEN) shares to target £2,400…

Read more »

Fireworks display in the shape of willow at Newcastle, Co. Down , Northern Ireland at Halloween.
Investing Articles

These 2 magnificent FTSE 250 shares are on sale right now!

These FTSE 250 companies still look cheap, despite recent share price gains. Here's why our writer Royston Wild thinks they’re…

Read more »

Blue NIO sports car in Oslo showroom
Growth Shares

Down 36% in 2024, how low could NIO shares go?

The electric vehicle sector has seen some tremendous volatility in recent years, but what does the future hold for NIO…

Read more »