Now’s still a great time to look for cheap shares to buy. The London stock market’s enjoyed huge gains in 2025 as value investors have piled in. But there’s still plenty of brilliant bargains to be had.
FTSE 100-listed Vodafone (LSE:VOD) is one I’ve noted. And from the FTSE 250, Polar Capital Technology Trust (LSE:PCT) and QinetiQ (LSE:QQ.) are another two bargains that have caught my eye.
Can investors afford to pass them up? Here’s why I think they’re top value stocks to consider.
A cheap investment trust
Fears of a potential ‘AI bubble’ have driven shares in Polar Capital Technology Trust sharply lower of late. This isn’t much of a surprise given the investment trust’s large holdings in AI stocks like Nvidia, Meta Platforms, and Microsoft.
For investors who reject the bubble narrative, I think this could represent an attractive dip-buying opportunity. The trust currently trades at a 12% discount to net asset value (NAV) per share around 512p.
I like the broad range of tech shares that Polar Capital Technology contains (93 in total). This provides exposure to an array of white-hot growth segments, including AI, cybersecurity, robotics, biotechnology, and cloud and quantum computing.
Such diversification also helps protect investors against risk. Over five years, the trust’s enjoyed a total return north of 700%. I think it can keep delivering over the long term.
Defence bargain
QinetiQ’s plummeted in value during Q4, leaving it (in my opinion) one of the UK’s best-value defence shares.
Its forward price-to-earnings (P/E) ratio is a sector-leading 13.4 times. Meanwhile, its P/E-to-growth (PEG) sits at just 0.8. Any sub-1 reading indicates a share that’s trading below value.
QinetiQ’s slump is especially surprising to me given recent trading news. It remains firmly in recovery after fixes to its US business, and order intake more than doubled in the six months to September (£2.4bn).
A possible peace deal between Ukraine and Russia represents a natural threat. But in the broader geopolitical landscape, I’m expecting the company’s shares to rise strongly over time.
A FTSE value star
Vodafone’s not without its challenges. Its turnaround in Germany is likely to be a lumpy process given high competitive pressures. It also faces large ongoing capex charges that could dent earnings.
I believe these problems are more than reflected in Vodafone’s rock-bottom share price, though. Its price-to-book (P/B) ratio is 0.5 times, even after recent price gains.
Meanwhile, the company’s forward P/E ratio is 13.2 times. That’s far below the 10-year average of 17.7.
I think there’s good reason to expect Vodafone shares to continue their 2025 rebound. Progress in its core German market, allied with a tighter grip on costs show a company clearly moving in the right direction. Last month it raised profit guidance and tipped adjusted EBITDA at the upper end of a €11.3bn to €11.6bn range.
I think Vodafone can rise steadily as telecoms demand gradually rises, with particular strength expected in the cheap share’s African markets.
