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£2k to invest? I’d buy these 2 cheap UK shares in a Stocks and Shares ISA right now

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Investing money in cheap UK shares today could be a means of improving your long-term financial prospects. Many FTSE 100 shares are currently trading at attractive prices that could prove to be cheap as the world economy recovers.

With that in mind, here are two stocks that have made gains recently. However, they still appear to offer margins of safety for new investors. As such, they could be worth buying with £2k, or any other amount, in a Stocks and Shares ISA.

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An attractive opportunity among cheap UK shares

The Polymetal (LSE: POLY) share price may have risen 60% in 2020, but the gold miner continues to offer good value for money. It is forecast to post a 62% rise in its net profit this year, followed by further growth of 18% next year.

Despite its impressive forecasts, the company trades on a price-to-earnings growth (PEG) ratio of just 0.4. This suggests that it offers a margin of safety that could lead to high capital returns.

The company’s recent half-year results showed that it was able to reduce total costs by 4%. It also increased capital expenditure by 31%, and remains on track with its development pipeline. This could lead to sustained growth in profit over the long run.

Clearly, Polymetal’s prospects could be disrupted by a change in the outlook for the gold price. However, its low valuation seems to factor in this risk. Therefore, it appears to be a worthwhile buying opportunity among cheap UK shares.

An attractive business positioned for growth

Unilever (LSE: ULVR) is another FTSE 100 company that could offer good value for money at the present time. Its recent results showed that it delivered a resilient performance despite challenging trading conditions.

Furthermore, it has strong positions in a range of markets that could lead to improving financial performance as the world economy recovers. It is also conducting a strategic review of its tea business, while implementing a new structure. This could streamline its operations and improve efficiency.

Looking ahead, Unilever is expected to return to positive net profit growth next year. Its price-to-earnings (P/E) ratio of 19 may be higher than some FTSE 100 companies at the present time. However, its growth prospects and strong financial position mean that it could offer good value for money relative to cheap UK shares. As such, now could be the right time to buy it for the long run.

Investing through a Stocks and Shares ISA

Buying Unilever and Polymetal as part of a diverse Stocks and Shares ISA could be a sound move at the present time. Both stocks appear to have growth potential and trade at attractive prices when this is taken into account. They could offer investment appeal relative to cheap UK shares for long-term investors.

A Top Share with Enormous Growth Potential

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While COVID-19 may have thrown the company a curveball, management have acted swiftly to ensure this business is as well placed as it can be to ride out the current period of uncertainty… in fact, our analyst believes it should come roaring back to life, just as soon as normal economic activity resumes.

That’s why we think now could be the perfect time for you to start building your own stake in this exceptional business – especially given the shares look to be trading on a fairly undemanding valuation for the year to March 2021.

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