Best British value stocks to consider buying in December

We asked our freelance writers to reveal their top value shares, including one ‘Fire’ and one ‘Ice’ recommendation…

| 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.

Light trails from traffic moving down The Mound in central Edinburgh, Scotland during December

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.

Every month, we ask our freelance writers to share their top ideas for value stocks with investors — here’s what they said for December!

[Just beginning your investing journey? Check out our guide on how to start investing in the UK.]

B&M European Value Retail

What it does: B&M operates a chain of discount retail stores selling groceries and general goods in the UK and France.

Should you invest £1,000 in Rolls-Royce 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 Rolls-Royce made the list?

See the 6 stocks

Created with Highcharts 11.4.3B&M European Value PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

By Roland Head. Profit growth has slowed at B&M European Value Retail (LSE: BME) since the pandemic. But the business is still expanding and is far more profitable than any of the big UK supermarkets.

Sales have risen by 70% to £5.6bn since 2019, while operating profits have climbed 78% to £568m over the same period.

Shareholders have benefited from a generous stream of dividends and these payouts are expected to continue. Consensus forecasts suggest a payout of 23.8p per share for the current year, giving a potential yield of 6.9%.

One risk is that long-time Trading Director Bobby Arora is set to retire next year. He’s the mastermind behind B&M’s ever-changing stock and keen pricing, but he’s leaving an experienced team behind. I don’t expect much to change.

B&M’s recent share price slide has left the stock trading on nine times forecast earnings. I think that looks cheap for a business of this quality.

Roland Head does not own shares in B&M European Value Retail.

Prudential

What it does: Prudential is an insurance and asset management company operating solely in Asia and Africa.

Created with Highcharts 11.4.3Prudential Plc PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

By Andrew Mackie. Buying something low and selling it for a profit in the years ahead sounds easy, and yet time after time too many private investors do the exact opposite. Take a company like Prudential (LSE: PRU). Off the back of a widespread narrative that China (its biggest market) has become “uninvestable”, its share price finds itself at levels not seen since 2012.

The Chinese economy may be in the doldrums, but the business posted a very respectable H1 results back in August. Its new business profit grew by 8%. This was all the more impressive given that during the same period in 2023, business was booming following the reopening of the border between Hong Kong and the Chinese mainland. Off the back of a solid set of results, its little wonder that it raised its dividend by 9%.

But it’s the long term growth story that I remain firmly focussed on. Single digit life insurance penetration rates as well as limited pension and health care provision, are unlikely to sit well with a growing middle class cohort.

Andrew Mackie owns shares in Prudential.

Should you buy Rolls-Royce now?

Don’t make any big decisions yet.

Because Mark Rogers — The Motley Fool UK’s Director of Investing — has revealed 5 Shares for the Future of Energy.

And he believes they could bring spectacular returns over the next decade.

Since the war in Ukraine, nations everywhere are scrambling for energy independence, he says. Meanwhile, they’re hellbent on achieving net zero emissions. No guarantees, but history shows...

When such enormous changes hit a big industry, informed investors can potentially get rich.

So, with his new report, Mark’s aiming to put more investors in this enviable position.

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.

The Motley Fool UK has recommended B&M European Value and Prudential 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.

Pound coins for sale — 51 pence?

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

Investing Articles

Prediction: 12 months from now, £5,000 invested in Tesla stock could be worth…

Tesla stock has endured a miserable year so far, falling by 29%. Muhammad Cheema takes a look at how it…

Read more »

Investing Articles

See what £10,000 invested in Tesla shares at their mid-December peak is worth today 

As the world absorbs the full scale of Donald Trump's tariffs, Tesla shares are reeling. Investors who bought the stock…

Read more »

Hand flipping wooden cubes for change wording" Panic " to " Calm".
Dividend Shares

2 ‘safe’ LSE dividend stocks to consider as global markets sell off

As global markets experience high levels of volatility due to economic uncertainty, investors are piling into these ‘safe-haven’ dividend stocks.

Read more »

Investing Articles

US stock market rout: an unmissable opportunity for investors?

His tech-heavy portfolio has been smashed by Trump’s tariffs. However, Dr James Fox believes there could be some opportunities in…

Read more »

Investing Articles

After a 13% ‘Trump tariff’ fall, is the Barclays share price too cheap to miss?

Does the Barclays share price fall mean we should all panic and run screaming from the stock market? Nah, of…

Read more »

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

2 investment trusts to consider for a Stocks and Shares ISA

These two investment trusts have a different focus -- but our writer sees both as worth considering, one more for…

Read more »

Investing Articles

Deutsche Bank reiterates Buy rating on 9.6% yielding FTSE 250 stock that was “most shorted in UK”

Our writer investigates why a major broker remains optimistic about a FTSE 250 stock that was once the most shorted…

Read more »

Investing Articles

2 things to remember when stock markets are turbulent

US trade policy has rattled the stock markets in New York, London and elsewhere. Our writer outlines a couple of…

Read more »