2 cheap UK stocks I think could thrive during a tough 2025

Looking for the best low-cost UK stocks to buy? Here are two whose share prices could fly even if the global economy splutters.

| 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.

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.

Portrait of pensive bearded senior looking on screen of laptop sitting at table with coffee cup.

Image source: Getty Images

Navigating the stock market can be extra challenging during tough, uncertain times like this. Yet the London Stock Exchange‘s diverse range of UK stocks still provides investors a chance to achieve strong returns.

Here are two top companies I think share pickers should consider today.

Begbies Traynor

Begbies Traynor (LSE:BEG) provides a range of services for companies in distress, and is an expert in the field of corporate insolvency.

Its services are in high demand as the UK economy struggles, with latest financials showing revenues up 16% (or 11% on an organic basis) in the six months to October.

A stream of industry surveys since then suggest takings have likely remained strong. On Monday (18 February), the Insolvency Service reported 1,971 registered company insolvencies in England and Wales for January.

This was up 11% year on year, and 6% from December. With businesses facing higher national insurance contributions and National Wage hikes, and spending by consumers remaining weak, insolvency numbers look set to (unfortunately) keep chugging higher.

A strong balance sheet mean Begbies Traynor has headroom to continue investing in its operations and on additional acquisitions to give earnings an extra boost. Its net-debt-to-adjusted EBITDA (earnings before interest, taxation, depreciation, and amortisation) ratio was just 0.2 as of October.

I don’t think this picture is reflected in the company’s low share price. At 93.4p per share, it trades on a forward price-to-earnings (P/E) ratio of 8.9 times.

This provides scope for fresh share price gains, in my opinion. Though be aware that signs of economic recovery could blunt any price appreciation.

Serabi Gold

Tension over the global economy and political landscape is creeping higher, and as a result demand for gold is taking off.

The yellow metal hit new peaks around $2,943 per ounce in recent days, pulling the prices of gold stocks with it. A move through the $3,000 marker looks inevitable to many, a scenario that in itself could fuel further substantial gains.

Investing in gold mining shares can be a bumpy ride at times. Commodity prices are notoriously volatile. On top of this, exploration and production issues can be common, damaging profits even when metal prices surge.

Yet this threat is baked into the share prices of many of London’s mining stocks. Gold miner Serabi Gold (LSE:SRB), for instance, trades on a forward P/E ratio of just 3.2 times.

It’s a rock-bottom reading I think leaves scope for more upwards price action. Serabi’s shares have leapt almost 30% in value since the start of 2025 alone.

I’m also encouraged by Serabi’s efforts to supercharge production from its South American assets.

Group output hit 10,022 ounces in the final quarter of 2024, the highest level for five years. And with 2025’s production tipped at 44,000 to 47,000 ounces, the miner’s targeting annual growth of at least 17.3%.

All in all, I think conditions are ripe for Serabi to enjoy blistering profits growth.

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Begbies Traynor Group 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.

More on Investing Articles

Investing Articles

£20,000 invested in a Stocks and Shares ISA over the last year is now worth…

With tax season coming to an end, investors will soon have a fresh £20k allowance for their Stocks and Shares…

Read more »

British flag, Big Ben, Houses of Parliament and British flag composition
Investing Articles

Back above 10,000! Is the FTSE 100 index on track again?

The FTSE 100 index has been yo-yoing up and down with the latest news headlines around the oil crisis. Where…

Read more »

Finger clicking a button marked 'Buy' on a keyboard
Investing Articles

Stock market correction: Is there still time to buy UK shares cheap?

Long-term investors can do well to stay calm through stock market corrections, and even crashes, and pick up shares when…

Read more »

Warm summer evening outside waterfront pubs and restaurants at the popular seaside resort town of Weymouth, Dorset.
Investing Articles

2 FTSE 100 blue-chips to consider for a new £20k Stocks and Shares ISA

Ben McPoland highlights a pair of high-quality FTSE 100 stocks that have strong momentum on their side yet are trading…

Read more »

Young Caucasian woman with pink her studying from her laptop screen
Investing Articles

Are depressed Lloyds shares just too tempting to miss now?

Lloyds shares are coming under renewed pressure as conflict in the Middle East threatens the fragile global economic recovery.

Read more »

Female student sitting at the steps and using laptop
Investing Articles

7 FTSE 100 shares that look cheap after the 2026 stock market correction

Falling stock markets often present bargain opportunities. Let's take a look at some of the cheapest FTSE 100 shares at…

Read more »

piggy bank, searching with binoculars
US Stock

Up 59% this year, this S&P 500 stock is smashing the index!

Jon Smith points out a stock from the S&P 500 that's flying right now as part of a transformation plan,…

Read more »

Businessman hand stacking money coins with virtual percentage icons
Investing Articles

Stock market correction: a rare second income opportunity?

Falling share prices are pushing dividend yields higher. That makes it a good time for investors looking for chances to…

Read more »