I’m on the lookout for some of the best low-cost stocks to buy this June. Here are three near the top of my shopping list.
#1: Powering up
I consider National Grid (LSE: NG) to be one of the ultimate safe-haven stocks out there. Sure, the business of maintaining Britain’s power grid is always fraught with regulatory risk. This can range from charges being slapped on what the FTSE 100 firm can charge its clients all the way through to possible renationalisation.
But so far the regulatory regime hasn’t stopped National Grid from generating some big returns for its shareholders. It operates in an ultra-defensive sector (we always need electricity regardless of economic, political and social upheaval). And it has a monopoly on what it does. Finally, this UK utilities share continues to invest heavily to keep delivering decent profits. It spent a record £5.4m in the last fiscal year, which in turn drove asset growth 9% higher year-on-year.
City analysts think National Grid’s earnings will rise 32% in the financial year to March 2022. This results in a forward price-to-earnings growth (PEG) ratio of just 0.5. With a 5.3% dividend yield to boot, I think this is one of the best value stocks to buy right now.
#2: One of the best animal care stocks to buy
Veterinary services provider CVS Group (LSE: CVSG) has been one of the best-performing shares in my Stocks and Shares ISA. It’s risen around 80% in value since I bought it less than 18 months ago. And even at current prices I’m thinking of investing more in the company. City analysts think the company will enjoy a 60% earnings rise this fiscal year (to June 2021). This leaves it trading on a forward PEG multiple of 0.6.
CVS Group is one of the largest veterinary care suppliers on these shores. It also runs diagnostics centres and pet crematoria, and runs e-commerce operations for independent vets as well as pet owners. People are spending more and more money on their furry friends, and this broad range of services, I feel, makes this UK share one of the best stocks to buy to ride this theme. I think it’s a great buy despite it becoming harder and more expensive for the firm to find veterinarians to staff its medical facilities.
#3: Reach for the stars
Newspaper publisher Reach could also be considered cheap, at least in my opinion. Even though it faces colossal costs owing to the phone hacking scandal, I’m still expecting it to create big profits growth in the years ahead. City brokers are predicting a 6% profits rise in 2021, leaving the company trading on a forward price-to-earnings (P/E) ratio of just 8 times.
I like the vast effort Reach has made to embrace the digital publishing revolution, a programme that is paying off handsomely. Digital revenues soared 35% in the four months to 25 April, latest financials showed. Popular publishing brands like Mirror Online and Express.co.uk should help keep sales heading northwards too.
Royston Wild owns shares of CVS Group. 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.