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Making a million could be easier if you invest in these 2 dirt-cheap stocks

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Finding the best stocks to buy at the lowest prices may now be more difficult than ever. The FTSE 100 has risen to a record high this year, and this has left many shares offering little or no margin of safety. Certainly, they may be performing well as businesses. But from an investment perspective there could now be more limited upside potential.

Despite this, there are still a number of shares which appear to be cheap. Here are two prime examples that could help you to make a million in the stock market.

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Positive news

Monday saw news of Tritax Big Box (LSE: BBOX) making a further acquisition. The real estate investment trust has bought a logistics facility in Harlow. It is currently let to Wincanton and Industrial Tool Services, with the total consideration for the building being £44.4m. It will be funded from equity, with there being unexpired terms of 4.5 years and 14 years on the leases to the two companies.

The acquisition fits in with Tritax’s overall strategy. It appears to be taking advantage of what may prove to be favourable pricing within the UK commercial property market. Since its business is focused on warehousing and logistics with a long-term outlook, it may be able to overcome threats to the UK’s economic performance from Brexit.

In fact, in the next financial year it is forecast to post a rise in its bottom line of 11%. This puts it on a price-to-earnings growth (PEG) ratio of just 1.7, which suggests that it may offer good value for money. Furthermore, with a dividend yield of 4.5%, the stock appears to have income appeal at a time when inflation is moving higher.

Declining valuation

Having fallen by 15% in the last six months, the Whitbread (LSE: WTB) share price now appears to offer good value for money too. The owner of Premier Inn and Costa now trades on a price-to-earnings (P/E) ratio of around 13. This suggests that it could offer a wide margin of safety due to its upbeat long-term growth outlook.

Certainly, the company’s forecast earnings growth of 6% next year is rather average. However, under its current leadership team, it appears to be implementing a sound strategy. It is seeking to improve customer service levels in the UK through product innovation. For example, introducing new food items to its Costa offering, while also diversifying into new areas such as the compact room offering called ‘hub by Premier Inn’.

Alongside this, the company continues to expand internationally. Costa Express appears to have further growth prospects in this regard, while the company’s presence in emerging markets such as China continues to grow. As such, while its performance has been disappointing in recent months, Whitbread now seems to offer significant upside potential for the long run. Therefore, now could be the perfect time to buy it.

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Peter Stephens owns shares in Whitbread. The Motley Fool UK has no position in any of the shares mentioned. 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.

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