The Motley Fool

UK share investing: a cheap FTSE 250 stock I’d buy and hold until 2030

Image source: Getty Images

Electric vehicles (or EVs) will be a big thing during this new decade. And I think this provides a great opportunity for UK share investors to make lots of money. The boffins at Deloitte forecast that 2020’s global EV sales of 2.5m will grow to a staggering 31.1m by the end of the decade. They’re not the only ones who expect EV demand to rocket, either.

There are a variety of ways that stock investors can try and make money from the EV surge. We can buy UK shares like Trifast or TI Fluid Systems, firms which pack EVs with their cutting-edge hardware. We can buy foreign shares like carmaker Tesla, battery maker Panasonic, or charging point manufacturer Blink Charging to ride this trend too.

5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!

According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…

And if you click here we’ll show you something that could be key to unlocking 5G’s full potential...

I reckon another good way to play the EV revolution is to buy UK commodities shares like KAZ Minerals (LSE: KAZ). This particular FTSE 250 company is the biggest copper producer in Kazakhstan and one of the biggest on the planet. Copper is an essential material in electrical applications and the manufacture of electronic products due to its strong conductivity. I therefore expect red metal demand to soar as global construction of EVs and charging stations picks up.


Bullish bank forecasts

A report from ING Bank illustrates how copper demand for low-carbon applications might take off from 2021 onwards. It predicts that “energy transition-related copper demand is set to accelerate as the world pivots towards a ‘green recovery’ after the pandemic”.

The bank reckons that rising EV sales is only one reason why copper consumption might jump during the green revolution, too. It says that “some major economies [are] gearing towards a greater share of power generation from renewable energy, while also seeing an increase in penetration rates for new energy vehicles”.

As a consequence, ING says that it expects “green investment induced copper demand to register double-digit growth over the next five years”.

A UK value share

As I say, I think investing in KAZ Minerals could be a lucrative way of playing the EV theme. But buying UK mining shares can often be a bumpy ride. Often exploration projects can disappoint and production at mature assets can fall short of expectations too. This can be due to a variety of issues, like declining resource quality and mechanical problems which can hit mine and mill outputs.

Mining in Central Asia specifically has been increasingly problematic in recent times too. Industrial action by workers across the energy and mining industries in Kazakhstan has been steadily growing over the past few years. It raises the prospect of severe production stoppages and rising costs later down the line.

All that said, I still think KAZ Minerals is an attractive UK share to buy today. City analysts think earnings there will soar around 29% year on year in 2021. And this leaves it trading on a forward price-to-earnings (P/E) ratio of just 7 times. Of course, forecasts can change depending on future developments. But this sort of potential value merits serious attention in my opinion.

A Top Share with Enormous Growth Potential

Savvy investors like you won’t want to miss out on this timely opportunity…

Here’s your chance to discover exactly what has got our Motley Fool UK analyst all fired up about this ‘pure-play’ online business (yes, despite the pandemic!).

Not only does this company enjoy a dominant market-leading position…

But its capital-light, highly scalable business model has previously helped it deliver consistently high sales, astounding near-70% margins, and rising shareholder returns … in fact, in 2019 it returned a whopping £150m+ to shareholders in dividends and buybacks!

And here’s the really exciting part…

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.

Click here to claim your copy of this special report now — and we’ll tell you the name of this Top Growth Share… free of charge!

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Tesla. 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.