The Motley Fool

£5k to invest in an ISA? 3 cheap UK shares I think could double in value by 2022

Image source: Getty Images

It’s obvious to all that the Covid-19 crisis will significantly change the world in a number of ways. A great many UK shares have seen their profits outlooks reduced to tatters as a result. The pandemic has sounded the death knell for plenty of companies with debt-heavy balance sheets as well.

It’s clear that UK share investors need to be extremely careful. But it doesn’t mean you and I should stop investing entirely. Covid-19 has been a disaster for plenty of British stocks, sure. There are still many that should make investors a lot of money in the years ahead. Some even provide goods and services for which demand is likely to explode in a post-pandemic environment.

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...

3 cheap UK shares on my watchlist

Here are several of these UK shares I’m thinking of buying for my own Stocks and Shares ISA today. I think they could even double in value over the next couple of years:

  • Flutter Entertainment isn’t likely to suffer any Covid-19-related hangover. In fact, its share price has leapt 42% so far in 2020 as the number of online gamblers using its services has ballooned. Revenues jumped 22% during the first half of 2020, latest financials showed. Of course, coronavirus-induced lockdowns have boosted activity at the Paddy Power banner. But online gambling activity is still tipped to rise at a stratospheric rate even as the world gradually returns to normal. I reckon a rock-bottom forward price-to-earnings growth (PEG) of 0.7 fails to reflect Flutter’s bright profits picture.
  • It’s clear that Covid-19 will have a significant macroeconomic and geopolitical impact that’ll last for years. Investor nerves are likely to remain on edge while central banks keep monetary policy extremely loose. An indirect way for UK share investors to get rich in this environment is by buying gold-producing stocks. Bullion prices have pulled back from record highs above $2,000 per ounce more recently. But many, myself included, expect them to charge higher again before long. I’m thinking of buying Serabi Gold stock to play this theme. This share — which has rocketed 55% in value in 2020 — provides plenty for value seekers to get stuck into. It trades on a forward P/E ratio of 7 times.
  • The share price gains at logistics specialist Clipper Logistics have been even more impressive. It’s up 75% since the beginning of January as Covid-19 lockdowns have lit a fire under online shopping volumes. And yet this UK share — which I already own in my ISA — still offers brilliant value for money, trading on a PEG ratio of below 1. With e-commerce growing at a blistering pace, it’s too good to miss.

Helping you to get rich!

These UK shares show that stock investors shouldn’t be scared to invest in the current environment. There are still many companies out there that could make you and I a lot of money in the years ahead. And with the help of The Motley Fool and its epic catalogue of exclusive and free investment reports, you can discover even more winners like Clipper Logistics.

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 owns shares of Clipper Logistics. The Motley Fool UK owns shares of Flutter Entertainment. The Motley Fool UK has recommended Clipper Logistics. 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.

Our 6 'Best Buys Now' Shares

The renowned analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.

So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee.

Simply enter your email address below to discover how you can take advantage of this.

I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement.