2 unmissable cheap shares investors should consider buying

This Fool details two industry leading cheap shares that she feels investors shouldn’t delay taking a closer look at as part of a diversified portfolio.

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I reckon the FTSE is littered with quality cheap shares. Two I think savvy investors should consider snapping up are Safestore (LSE: SAFE) and Unilever (LSE: ULVR). Here’s why!

Self-storage giant

Safestore is one of the largest self-storage businesses in the UK with a wide footprint and excellent track record.

The shares are down 17% over a 12-month period. As I write, they’re trading for 780p, compared to this time last year when they were trading for 944p.

Safestore’s valuation on a price-to-earnings ratio of just five is too cheap to ignore, if you ask me. Add to this a great passive income opportunity with a dividend yield of 3.8%, and there’s a solid investment case already. However, it’s worth remembering that dividends are never guaranteed.

Safestore’s past performance track record is enviable. It has grown revenue and profit for the past three years in a row. Of course, it’s worth remembering that past performance is not a guarantee of the future.

Finally, Safestore has grown consistently to become an industry leader. It’s looking to continue its growth trajectory too. It has opened branches throughout Europe. It recently opened a few locations in Spain. If this pays off, the shares, performances, and payouts could increase.

From a risk perspective, storage solutions are increasing in demand but competition is intense. I reckon one of the biggest reasons is due to the low barriers of entry into the industry. I’ll keep an eye on developments, including competitors.

Consumer goods king

Unilever is one of the biggest consumer goods firms in the world and I’m quite excited it is one of a number of cheap shares currently available.

The shares are currently trading close to 52-week lows. As I write, the shares are trading for 3,811p. At this time last year, they were trading for 4,105p, which is a 7% drop over a 12-month period.

Unilever’s current valuation on a P/E multiple of 13 is very attractive, in my eyes. Plus, another solid passive income opportunity with a dividend yield of 4% makes the shares even more appealing.

From what I can deduce, Unilever shares have struggled due to macroeconomic factors including rising inflation and interest rates. A cost-of-living crisis has impacted sales levels. However, it’s worth noting that performance hasn’t dipped as sharply due to the company’s ability to increase prices but still pull in healthy numbers.

This last point is what helps me believe that the shares will climb eventually. Excellent brand power and a mammoth footprint are key ingredients that have helped the firm become a major player in its respective industry.

Continued volatility could hurt the business but it seems to be navigating the current downturn well. However, consumers may continue to seek budget alternatives, compared to branded items. In turn, Unilever’s bottom line could be impacted. I’ll keep an eye on developments here.

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.

Sumayya Mansoor has no position in any of the shares mentioned. The Motley Fool UK has recommended Safestore Plc and Unilever 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.

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