2 top-notch UK shares for investors to consider buying!

UK shares look like cracking value for money and this Fool thinks now’s the time for investors to consider taking advantage of them.

| 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.

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.

It has been a rollercoaster year for the FTSE 100. Despite putting up a strong performance, it hasn’t been a smooth journey. Yet despite bouts of volatility, I still see a lot of value in a number of UK shares.

That’s because a number of UK equities look dirt cheap. The average price-to-earnings (P/E) ratio on the FTSE 100 right now is around 11. In the past, that figure has been closer to 15.

With that in mind, I’ve got my eye on two Footsie constituents in particular. I reckon investors should consider buying them today.

Should you invest £1,000 in BT right now?

When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets. And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if BT made the list?

See the 6 stocks

HSBC

I want to start with global bank HSBC (LSE: HSBA). Like the FTSE 100, the stock’s experienced large amounts of volatility year to date. It sunk 8% back in February following the release of its 2023 results. It’s managed to stage a small recovery since then. For the year, it’s up 4.5%.

Created with Highcharts 11.4.3HSBC Holdings PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

But despite its mixed performance, I see plenty to like about HSBC. For one, as seen below, it sports a whopping 7.1% dividend yield. That puts it in the mix with some of the Footsie’s highest payers. What’s more, that doesn’t account for the special dividend the firm’s set to pay this year after offloading its Canadian unit. Taking that into account, its payout is closer to 10%.


Created with TradingView

Alongside its meaty yield, HSBC stock looks cheap. It currently trades on a P/E ratio of just 7.4. Its forward P/E is 6.8.

While I like the bank for its Asian exposure, that does come with risks. The Chinese economy has stuttered recently, especially its property market. HSBC has large exposure to this through its stake in China’s Bank of Communications. So that’s a threat that’s worth keeping an eye on.

But over the long run, I think its focus on Asia will pay dividends. I’m bullish because the region is home to some of the most exciting and fastest-growing economies in the world.

JD Sports Fashion

Next up is JD Sports Fashion (LSE: JD.). The stock has underperformed this year. It’s down 9.8% in 2024. That said, it has been gaining good momentum recently. It’s climbed 28.1% in the last six months and 19.1% in the last month.

Created with Highcharts 11.4.3JD Sports Fashion PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

With that rise, as the chart below highlights, the stock now trades on a P/E ratio of 13.9. That’s above the FTSE 100 average. But it’s considerably lower than its historical average of 23.


Created with TradingView

JD’s share price has suffered due to a slowdown in spending. That in turn has led to the business issuing a profit warning earlier this year, which sent the stock spiralling. Consumers are still tightening their belts, so in the months to come this will continue to be a threat to the firm.

But looking past short-term challenges, I think JD could be well-positioned to excel in the long run. Firstly, interest rate cuts should help boost spending.

What’s more, despite tough trading conditions, the business has been making solid progress with its expansion plans. That includes its acquisition of US company Hibbett earlier this year, which has over 1,150 stores.

5 Shares for the Future of Energy

Investors who don’t own energy shares need to see this now.

Because Mark Rogers — The Motley Fool UK’s Director of Investing — sees 2 key reasons why energy is set to soar.

While sanctions slam Russian supplies, nations are also racing to achieve net zero emissions, he says. Mark believes 5 companies in particular are poised for spectacular profits.

Open this new report5 Shares for the Future of Energy — and discover:

  • Britain’s Energy Fort Knox, now controlling 30% of UK energy storage
  • How to potentially get paid by the weather
  • Electric Vehicles’ secret backdoor opportunity
  • One dead simple stock for the new nuclear boom

Click the button below to find out how you can get your hands on the full report now, and as a thank you for your interest, we’ll send you one of the five picks — absolutely free!

Grab your FREE Energy recommendation now

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.

HSBC Holdings is an advertising partner of The Ascent, a Motley Fool company. Charlie Keough has no position in any of the shares mentioned. The Motley Fool UK has recommended HSBC Holdings. 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.

Like buying £1 for 51p

This seems ridiculous, but we almost never see shares looking this cheap. Yet this recent ‘Best Buy Now’ has a price/book ratio of 0.51. In plain English, this means that investors effectively get in on a business that holds £1 of assets for every 51p they invest!

Of course, this is the stock market where money is always at risk — these valuations can change and there are no guarantees. But some risks are a LOT more interesting than others, and at The Motley Fool we believe this company is amongst them.

What’s more, it currently boasts a stellar dividend yield of around 8.5%, and right now it’s possible for investors to jump aboard at near-historic lows. Want to get the name for yourself?

See the full investment case

More on Investing Articles

Warren Buffett at a Berkshire Hathaway AGM
Investing Articles

Dividend investors! Here’s what Warren Buffett says builds wealth in the stock market

Reinvesting dividends at yields of 8% or higher looks like a good way of building wealth. But Warren Buffett has…

Read more »

Calendar showing the date of 5th April on desk in a house
Investing Articles

Here’s my Stocks and Shares ISA plan for 2025-26

A Stocks and Shares ISA helps investors avoid taxes on dividends and capital gains. And Stephen Wright has a plan…

Read more »

Dividend Shares

Of the 20 highest-yielding FTSE 100 stocks, this is my top pick

This FTSE 100 stock currently offers a yield of 6.4%. But Edward Sheldon believes it’s capable of providing share price…

Read more »

Investing Articles

Could Tesla’s share price jump over the next 12 months? These analysts think so!

Tesla's share price has fallen by almost a third since 1 January. But optimism is high that Elon Musk's company…

Read more »

Investing Articles

I asked ChatGPT where the FTSE 100 will be in 6 months: here’s what it said…

Let’s be realistic, ChatGPT can’t predict the future. But it did do a good job of compiling data from brokerages…

Read more »

Investing Articles

Could the Rolls-Royce share price hit £10?

The Rolls-Royce share price has taken most analysts by surprise with almost everything going right for the British engineering giant.

Read more »

Investing Articles

4 REITs Fools own for passive income

REITs often have higher-than-average dividend yields compared to other stocks, making them a solid choice to consider for passive income…

Read more »

artificial intelligence investing algorithms
Investing Articles

Up 272% in just a year, is Palantir stock just getting started?

This writer recognises that Palantir has grown its business very well -- but does the stock price offer him an…

Read more »