Whether it’s for stocks or socks, billionaire investor Warren Buffett loves to go shopping when things are on sale. And I’m no different, having bought more undervalued FTSE 100 and FTSE 250 shares in recent months.
While share prices have stabilised in the past year, the UK stock market remains packed with excellent shares trading below value. This gives eagle-eyed investors a chance to nip in and grab a bargain.
With this in mind, here are three I think investors need to consider in April.
Banking star
Its share price may have gone galactic more recently, but emerging-market-based Bank of Georgia (LSE:BGEO) still offers exceptional all-round value.
Its forward price-to-earnings (P/E) ratio comes in at 5 times. And its corresponding dividend yield sits at 5.5%.
Profits continue to rocket here as demand for financial products in Georgia soars. Unlike UK banks like Lloyds, it didn’t have to rely on central bank interest rate hikes to grow revenues and earnings either. Operating income leapt 26.4% year on year as loan book growth accelerated to 19.6%.
This, in turn, propelled adjusted pre-tax profit 21.4% higher.
A fresh economic crisis could derail Bank of Georgia’s impressive rate of growth. But right now, things still look bright for the company’s home economy. Ratings agency Fitch, for instance, expects GDP there to rise 2.4% in 2024.
A top REIT
Eagle-eyed investors may have also noticed Assura (LSE:AGR) shares offer excellent value today. It’s not just because of their market-beating 8.2% dividend yield either.
At 11.8 times, the medical property owner’s forward P/E ratio currently sits well below its five-year average of 21 times.
Assura’s share price may remain under pressure if interest rates fail to come down rapidly. This would keep its net asset values (NAVs) at depressed levels.
But I believe this real estate investment trust (REIT) remains an ultra-attractive buy. Over the long term, I expect profits here to grow strongly as the UK’s expanding elderly population drives the need for new primary healthcare facilities like GP surgeries.
Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice.
Premier Foods
Premier Foods (LSE:PFD) is — like Bank of Georgia — another FTSE 250 share with the wind in its sails. And with a forward P/E ratio of 10.9 times, it also still offers tasty value.
The Mr Kipling cakes and Bisto gravy manufacturer has more than 20 beloved food brands in its product stable. And they continue to gain market share at a rapid pace, underpinning a 14.4% increase in group sales between October and December. It also delivered the company its best Christmas performance on record.
Premier Foods is driving into international markets to give profits growth a shot in the arm too. And so far it’s proving highly successful. Overseas sales improved 11% in the last quarter.
While food cost inflation may spike again, I still think this is a top value stock to consider today.
