Below, I’m going to highlight three stocks that came up on my screen. If analysts are right, these penny shares could be set to soar.

An AI play

First up, we have Made Tech (LSE: MTEC). It’s a small tech company that’s helping the UK government with digital transformation (data, automation, AI, etc)

At present, it trades for around 38p. However, the average analyst price target is 60p – 58% higher.

I think this stock could be worth a closer look. Because it appears to offer a nice combination of growth and value right now.

This financial year (ending 31 May), revenue is expected to grow 19%. The valuation isn’t high though – the forward-looking price-to-earnings (P/E) ratio is only 15.

Of course, a risk is a cutback on tech spending by the UK government. This could see growth slow.

A trading update in December was very encouraging, however. Trading was better than expected and management said that it was “optimistic” and “confident” in relation to the outlook.

A pizza chain trading at a discount

Next, we have DP Poland (LSE: DPP). It operates the Domino’s Pizza chain in Poland and Croatia.

It currently trades for around 7.6p. Yet the average price target is 14p – about 84% higher.

This is another company that could be worthy of further research. Because like Made Tech, it appears to offer both growth and value.

Last year, the company delivered group system sales growth of 11.3%, so it’s growing at a healthy rate. As for the valuation, it currently sports a price-to-sales ratio of just 1.1 – well below the ratio of 2.6 that US-listed Domino’s Pizza has today.

It’s worth noting that DP Poland hasn’t been profitable up to now. So, it’s higher up on the risk spectrum.

I see potential, however. With the company shifting to a franchise-led, capital-light model, there’s plenty of room for profit (and share price) growth.

A takeover target?

Last but not least we have Corero Network Security (LSE: CNS). This is a small UK cybersecurity company that specialises in Distributed Denial of Service (DDoS) protection. A DDoS attack is an attempt to disrupt a server, service, or network by overwhelming it with a flood of internet traffic.

The share price here is 12p. Yet the average analyst price target is 19p – about 58% higher.

This stock has been a poor performer over the last year or so. And at current levels, I think it’s worth checking out.

In January, the company posted a strong trading update in which it advised that it experienced positive trading momentum throughout the second half of 2025. Encouragingly, annualised recurring revenues (ARR) increased 23% to $23.9m, signalling high demand for its cybersecurity solutions.

It’s worth pointing out that competition from larger players in the industry is a risk here. That said, the cybersecurity industry is experiencing a period of consolidation right now and I wouldn’t be surprised if this company was to attract takeover interest.

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Cybertech to the rescue

Earlier in April, the Corero Network Security (LSE:CNS) share price was down almost 30% for the year. However, it has rallied over the past week or so, with the stock now up 44% over a broader one-year period.

The cybersecurity firm specialises in real-time protection against online attacks. Its flagship product, SmartWall, offers automated defence solutions tailored for businesses. It makes money primarily through charging a regular subscription fee to companies that use the software products.

I think the company could do well in the coming year for a few reasons. To begin with, it’s not really exposed to tariffs with the US, so I have no real worries here. Next, there’s a clear rise in the frequency and sophistication of attacks, exacerbated by the use of AI and high-performance bots. This means that there’s a heightened need for robust protection solutions. ​

Finally, the business ended last year with no debt and £4.01m in cash. This puts it in a strong position financially. Of course, one risk is that Corero has to keep evolving to the changing threats online constantly. If it doesn’t, the platform will go out of date very fast and see customer demand evaporate.

Rebuilding a reputation

Another idea is Tribal Group (LSE:TRB). The stock is down 6% in the past month, meaning it’s down 25% over a year. The penny stock provides software and services tailored for the global education sector, operating in over 55 countries.

The share price has weakened partly due to the legacy impact of a soured contract with Nanyang Technological University (NTU) in Singapore back in 2023. Implementing Tribal’s student management system for NTU faced substantial delays and increased complexity, with the university claiming damages. Last May Tribal agreed to pay £3.1m in settlement fees, payable over the next year-and-a-half.

Even though this isn’t ideal, the saga is almost over. From a financial and reputational perspective, it can use 2025 to move on and start fresh. The company has achieved success with plenty of other educational sites. The recurring subscription model means that cash flow is consistent and easy to scale up as the firm grows. Further, the shift towards digital learning environments has accelerated, increasing the need for robust student information systems and related services. Tribal is well-placed to take advantage of this.

The main risk I see to a material stock jump is the overhang of the NTU situation. Restoring market trust could take longer than I expect.

Ultimately, I think both penny shares could erase the falls from the past month, with further potential gains possible later this year. Investors who are comfortable with the risks of these types of stocks could consider adding them to their portfolios.

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Here, I’m going to highlight an under-the-radar stock that has delivered more than twice the return that Rolls-Royce has this year. Believe it or not, this stock is trading for just 22p.

A UK cybersecurity company

The stock I want to zoom in on today is Corero Network Security (LSE: CNS). It’s a small UK cybersecurity company that specialises in solutions designed to protect companies against malicious network/server activity.

I’m kicking myself for not buying this stock when it first popped up on my radar in July. Since then, its share price has climbed from 19p to 22p – a gain of 16%.

That return is nothing compared to the year-to-date return though. This year, the stock is up a stunning 170% (versus 80% for Rolls-Royce).

Not my usual type of pick

Despite the recent gains, I’m still tempted to buy it for my portfolio.

It’s quite different from the stocks I usually buy. I usually go for large-cap companies that are very profitable.

In this case, the company is tiny (a market cap of just £114m). And it has a patchy track record when it comes to profits.

But I’m looking for some cybersecurity exposure. And what stands out to me here is that profits are expected to surge in the years ahead.

Next year, analysts expect earnings per share to jump a whopping 200% to 0.3 cents. There aren’t many companies on the London Stock Exchange with that kind of earnings growth forecast.

The reason earnings are expected to surge is that the cybersecurity company has a ton of momentum right now and is signing new customers left, right, and centre. Last quarter, it signed six new customers, taking its total for the year to 16.

For Q3, the total value of new orders secured was $6m. Meanwhile, the total value of new orders for the first nine months of the year was $20.2m.

Lots to like

Looking beyond the new customer wins and earnings growth, there are few other reasons I’m bullish here.

One is that the company now has a high level of recurring revenues. Generally speaking, recurring revenues reduce risk for investors.

Another is that, at the end of June, the company was debt-free with a net cash balance of around $8m. So, the balance sheet is strong.

Should I buy?

Now, despite the recurring revenues, earnings growth, and strong balance sheet, this is a risky stock.

Cybersecurity is a dynamic industry and threats are always evolving. Meanwhile, the company is up against rivals that have far more financial resources.

Additionally, the stock has a high valuation. Currently, the forward-looking price-to-earnings (P/E) ratio using next year’s earnings forecast is around 100. I don’t see that valuation as a dealbreaker since earnings per share are surging (the P/E-to-growth or ‘PEG’ ratio is 0.5 which suggests there’s value on offer). But it does add risk.

Overall though, I think this one looks very interesting. In the months ahead, I may end up taking a small position in an effort to capitalise on the booming cybersecurity industry.

The post This UK stock is crushing Rolls-Royce. And it only costs 22p appeared first on The Motley Fool UK.

Here, I’m going to highlight two exciting penny stocks that I believe are worth a closer look today. Currently, both are trading for less than 20p.

High-risk, high-return

First up, we have Poolbeg Pharma (LSE: POLB). It’s an under-the-radar biopharmaceutical company that’s developing drugs (with the help of artificial intelligence) to address unmet medical needs.

Now, this is a classic penny stock in that it’s a high risk, high reward play. You see, this company doesn’t have any revenues or earnings at all today so it’s a very speculative investment.

But things could change. Currently, the company’s working on a range of drugs including products to treat cancer immunotherapy-induced Cytokine Release Syndrome (a condition that develops when an immune system responds too aggressively to infection) and obesity (it’s working on an oral weight-loss product).

If it was able to bring any of these drugs to the market, its revenues could explode. And so could its share price.

Of course, investors shouldn’t assume successful market launches will happen. Drug development’s a notoriously challenging industry in which major setbacks are the norm.

I see a lot of potential here though. I think Poolbeg Pharma’s worth considering as a speculative investment.

A high-growth industry

The other penny stock I want to highlight today is Corero Network Security (LSE: CNS). It’s a small cybersecurity company that specialises in Distributed Denial of Service (DDoS) protection solutions.

I see this stock as a little less risky than Poolbeg Pharma. That’s because the company already has revenues. Last year, these came in at $22.3m. This year, analysts expect $28m (growth of an impressive 26%).

That said, it’s still a very risky stock as the company’s profits are small. For 2024, net profit and earnings per share are only expected to come in at around $375,000 and 0.1 cents respectively.

Again though, I’m excited about the potential here. Cybersecurity’s a rapidly growing industry and this company’s having a lot of success at present, having recently signed a number of contacts with firms of different shapes and sizes.

If it can continue to do this and grow its revenues and earnings in the years ahead, I think it could turn out to be a decent investment. It’s worth noting that in July, the company said that it continues to experience high demand for its SmartWall ONETM DDoS protection solutions and that its pipeline is at record levels.

Of course, cybercrime’s always evolving. So there’s guarantee this company will continue to be successful going forward.

As a speculative investment however, I believe it’s worth a look.

The post 2 exciting penny stocks under 20p to consider buying today appeared first on The Motley Fool UK.

Here, I’m going to highlight one I feel has a lot of potential. Currently, it trades for just 19p.

A UK cybersecurity company

The stock I’m zooming in on today is Corero Network Security (LSE: CNS).

It’s a UK-based cybersecurity company that specialises in Distributed Denial of Service (DDoS) protection solutions. A DDoS attack is a malicious attempt to disrupt a server, service, or network by overwhelming the target or its surrounding infrastructure with a flood of internet traffic.

Listed on the London Stock Exchange’s AIM, the company has a market cap of just £97m at present. So, we’re talking about a very small company here.

Why it’s worth a closer look

Now, I tend to steer clear of penny stocks these days. Generally speaking, they’re a little too risky for me.

But this company looks really interesting, in my view.

For a start, it operates in a rapidly-growing industry (to which I want more portfolio exposure). Today, the cybersecurity market is absolutely booming as businesses and government organisations scramble to protect themselves from cyber threats.

This year alone, cybercrime is set to cost the world around $9.5trn, according to Cybersecurity Ventures. So, organisations can’t afford to ignore this area of technology.

Cybercrime is the greatest threat to every company in the world

Ginni Rometty, former Chair and CEO of IBM

Additionally, the fundamentals here look pretty good. This year, the company’s revenue is expected to increase 25% to $27.9m. Meanwhile, earnings per share are expected to come in at 3.4 cents versus 0.0 cents last year.

It’s worth noting that in April, the company told investors that it was seeing “significant order momentum” from both existing and new customers for its SmartWall ONETM DDoS protection solution.

As for the valuation, it’s really low. Currently, the stock trades on a price-to-earnings (P/E) ratio of just 6.5. In other words, it’s dirt cheap at the moment, despite a rise in the share price recently.

Risk vs reward

In terms of the risks, there are a few that come to mind.

First, the cybercrime landscape is always evolving. Just because a company is having success fighting such crime today doesn’t mean it will continue to have success in the future.

Second, this is a competitive industry and the company is up against some big players that are hundreds of times its size. A lot of businesses may prefer to obtain protection from larger, more established entities.

Third, analysts’ forecasts for these kinds of stocks can be way off the mark. So, the earnings per share forecast could turn out to be too high (meaning the stock isn’t as cheap as it looks).

At the current share price and valuation, however, I think the risk/reward skew looks attractive.

I’ve added the stock to my watchlist and I may have a nibble at some stage.

The post Is there a fortune hidden in this 19p penny stock? appeared first on The Motley Fool UK.

What is a penny stock, exactly? I like the definition that it’s a company with a market capitalisation under £100m and a share price below £1.

However, that knocks out a few promising candidates because their share prices happen to be above £1, despite having market capitalisations below £100m.

On top of that, I’m ignoring companies with a market capitalisation below £50m – they’re too small for me.

Sifting through the rubbish

The first question I’d ask, is why is the company a penny stock?

Sometimes firms end up with penny-stock status after shrinking from being larger businesses. In most cases, shareholders will have endured a grim time. So I’d avoid those because the best we can hope for is a turnaround in fortunes.

But why bet on that scenario after a business has just demonstrated its tendency to underperform?

Good examples of such laggards can be found in digital clothing and footwear retailer N Brown and oil and gas company Pharos Energy.

Another breed of penny stock is the purely speculative business with little or no meaningful earnings, and sometimes scant revenue and cash flow as well. I’d avoid those too.

Good examples include commodity businesses like Premier African Minerals, Chariot and Predator Oil & Gas Holdings. There are also tech stocks like Cirata, and pharmaceuticals such as Scancell Holdings and Futura Medical. We can even find such firms in the financial space, like Argo Blockchain.

One thing those speculatives have in common is that they’re all bargepole-jobs for me.

Penny stocks I like

However, there are some penny stocks I’m keen on right now. For me, small companies are all about growth in earnings. With that in mind, I like the way the turnaround is unfolding at RM.

It’s a UK-based global educational technology (EdTech), digital learning and assessment solution provider. The business went through a difficult patch but earnings are rebounding. The company looks well worth further and deeper research now.

But the one penny stock I’d consider buying now more than any other is Corero Network Security (LSE: CNS). The tech company offers Distributed Denial of Service (DDoS) protection solutions.

It specialises in automatic detection and protection solutions with network visibility, analytics, and reporting tools. The technology aims to protect against external and internal DDoS threats in complex edge and subscriber environments, thus ensuring internet service availability.

That’s quite a mouthful, but the business looks set to explode into earnings after being a loss-maker for years. So that’s the important bit.

In April, the company updated the market by declaring a strong start to 2024 with greater than $8m of orders secured “already”.

The directors said “significant” new and existing customer wins underpinned the positive sales traction.

As I mentioned, penny stocks are risky, and trends in the underlying business can reverse suddenly. It’s easy to lose money on stocks like this. It’s not an investment I’d tell my mum about!

Nevertheless, I like the net cash position on the balance sheet and the bullish tone of recent updates. For me, this is definitely a stock to consider now.

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Here are three priced at under 100p, which I’m strongly tempted to buy for 2023.

Lithium

Lithium stocks were hot in early 2022, but they’ve faded in the second half. It still means Atlantic Lithium (LSE: ALL) shares are 33% up over 12 months, at 33p. But that’s a lot cheaper than their 52-week peak of 68p.

The market cap is a little over £200m, so it’s a small company, and there’s risk with that.

The attraction is that lithium is in great demand for batteries, including for the electric vehicle (EV) market. Shares in EV manufacturers Tesla and NIO slumped in 2022, so that’s possibly behind the weak sentiment in the lithium market.

But the EV business surely has a very big future ahead of it, doesn’t it?

It’s hard to put a valuation on Atlantic, as it’s not yet profitable, and I’d say that’s the biggest risk. But forecasters have a first profit marked down for 2025, even if only a small one.

Cybersecurity

I also like the look of cybersecurity specialist Corero Network Security (LSE: CNS).

Corero has a market cap of only a little over £50m, so it could be be more vulnerable to short-term ups and downs than most. But if I bought, it would be for the long term.

The company provides protection from web attacks, and we’ve seen a big rise in those in 2022. I think we could see significantly bigger demand in the coming decades.

We are looking at a business only just turning profitable, which I think is the main risk. In the first half of 2022, it recorded adjusted EBITDA of only $0.3m. But there was $5.8m net cash on the books.

And Corero expects to see 15%-25% contract growth for the full year.

Lloyds

Lloyds Banking Group (LSE: LLOY) is a FTSE 100 stock I just can’t overlook. It has a market cap of over £30bn. But its share price fall all the way to 45p over the past few years makes it the lowest in the top index today.

The shares have gone nowhere this year, though. And there’s a risk I could be saying the same at the end of next year too. We do, after all, face rising mortgage costs and a weakening property market. Those are not ideal conditions for the UK’s biggest mortgage lender.

Against that though, we’re looking at price-to-earnings (P/E) multiples of under seven. And dividend yields of above 5% and rising. If forecasts are correct, which is admittedly far from certain, dividends could reach 6% by 2024.

Verdict?

Though I’m tempted by all of these, they do all carry different degrees of risk. I rate Lloyds as my safest pick, and I intend to buy more. I’ll examine the other two more closely first.

The post 3 UK shares under £1 to buy for 2023? appeared first on The Motley Fool UK.

Penny stocks are perhaps best known for their frequent volatility. They trade in extremely low volumes on the London Stock Exchange, leaving them vulnerable to sudden price slumps.

So if I find myself forced to sell up before I intended I could end up making a whopping loss.

Risk vs reward

Penny stocks also tend to be less financially stable than more mature companies with larger market caps. This can compromise their ability to survive tough times and heightens my chances of losing money.

They might not be suitable for risk-averse investors, then. However, this class of UK share has also proven a great way for growth investors to make piles of cash. Here is one I’m thinking of buying for my portfolio next month.

Tech titan

Steady technological progress and changing worker expectations following Covid-19 is hammering demand for office space.

Lawyers Boodle Hatfield note that 1.8m square metres worth of office space disappeared during the year to March 2022. This was the biggest drop since records began more than 20 years ago.

Office suppliers might be losing out from the growth of hybrid and flexible working. But it offers a world of opportunity for IT services business. One of these is Corero Network Security (LSE: CNS).

Orders are soaring

This penny stock provides remote users protection from ‘Distributed Denial-of-Service’ (or DDoS for short) attacks. These types of attacks cause websites to crash by bombarding them with huge amounts of fake traffic.

Orders at Corero are expected to jump between 15% and 25% this year alone, the company advised in October. The emergence of flexible working and the relentless growth of the internet mean that the company could keep racking up new business, too, helped by the huge investment it’s making to scale up.

Market threats

There are a couple of big dangers that investors need to be aware of, though. Firstly, the costs of building out its sales and marketing capabilities are extremely high.

Adjusted EBITDA is tipped to fall to between $1m and $2m in 2022 because of these expendes. This compares with earnings of $4.1m that Corero chalked up last year.

Furthermore, this small-cap share is a small fish compared to most of its rivals. Businesses like Microsoft, Amazon, and IBM have the budgets and the brand recognition to make life hard for smaller operators like this.

The verdict

That said, the rate at which the cybersecurity market is growing means Corero could still prove to be a winning investment.

Analysts at Fortune Business Insights think the global cybersecurity market will enjoy a compound annual growth rate of 13.4% to 2029. By then they think the sector will be worth more than $376bn.

It might be expensive. But I’m encouraged by the investment Corero is making to exploit this opportunity, too. On balance I think this could be a top penny stock to buy for the next decade.

The post A top penny stock I’d buy in December to hold for 10 years appeared first on The Motley Fool UK.

Kropz

What it does: Searches for and produces rock phosphate in Africa.
Price: 8.5p per share

Producing enough food to go round is becoming increasingly hard as population levels rise and global warming worsens. It’s why companies like Kropz (LSE: KRPZ) will play a critical role in the food industry in the decades to come.

This penny stock mines for rock phosphate in Africa, the basic material that’s then used to produce phosphate fertilisers. Virtually all of these types of fertiliser are based on rock phosphate, a raw material that Kropz hopes to produce from its Elandsfontein open pit project in South Africa later in 2022.

Kropz also 100% owns the Hinda rock phosphate asset in Republic of Congo. The business has said that the project could be “one of the world’s largest undeveloped sedimentary-hosted phosphate reserves.”

Production problems

Operational news from the firm hasn’t been hugely encouraging recently. In April it warned of production issues at Elandsfontein that would push its first bulk sale of rock phosphate further back into Q2.

This delay also means Kropz has had to raise ZAR58m, it said. It’s done raise this by drawing down remaining funds from a conditional convertible equity facility and by sealing a bridge loan facility.

A big market

Buying mining shares can always be considered risky. Problems at the exploration, mine development and production stages can be commonplace. And as Kropz has shown, this can be particularly problematic for smaller operators with no revenues and fragile balance sheets.

Still, it’s my opinion that this is an attractive penny stock for me to buy. First off, its projects in Africa are potentially world-class assets. And secondly the business could profit considerably from soaring fertiliser demand.

Analysts at Grand View Research think the phosphate fertiliser market will grow from $63.81bn today to a whopping $176.06bn by 2040.

Corero Network Security

What it does: Provides products that protect websites from cyber attacks.
Price: 12.25p per share

The Covid-19 crisis had led to a sea change in employee expectations. In particular demand for more flexibility in regard to working arrangements has taken off. This bodes well for many businesses that supply software and IT services like Corero Network Security (LSE: CNS).

This particular tech stock provides protection against so-called Distributed Denial-of-Service (or DDoS) attacks. These malicious actions work by attacking a website with large amounts of fake traffic to cause a crash.

With more and more people working from home the opportunity for cyber criminals to wreak havoc is growing. Companies are therefore are having to spend huge amounts on tech security to plug their vulnerabilities. Corero itself saw revenues rocket 24% year-on-year in 2021.

A small player

The problem for Corero Network Security is that it’s tiny compared with the industry’s big beasts. Today the penny stock has a market cap a shade above £60m.

Compare this with the multi-billion (and even trillion) dollar valuations that businesses like Microsoft, NortonLifeLock and McAfee command. Corero then has a fraction of the budgets that its US heavyweight rivals have to develop and market their products.

Making great progress

Corero will have to paddle extremely hard to avoid being swept away by the competition. But having said that, I find the rate at which the UK underdog is winning business highly encouraging. And it could continue to impress as the global cybersecurity market rapidly grows.

Researchers at Quince Market Insights think this sector will expand at a compound annual growth rate of 12.5% between now and 2028. They say the cybersecurity industry will be worth a gigantic $418.3bn by then.

US Solar Fund

What it does: Invests in solar farms in the US.
Price: 88 US cents share

Investing in renewable energy stocks is also appealing to me today. I’ve taken the splash in recent weeks by buying shares in solar and wind farm owner The Renewables Infrastructure Group. I’m considering increasing my exposure by snapping up stock in US Solar Fund (LSE: USF) as well.

As the name suggests, US Solar Fund is focused on creating green energy from photovoltaic cells in the States. Its assets can be found predominantly in North Carolina with the remainder in Oregon, California, and Utah.

Favourable locations

The problem with renewable energy is that it’s sometimes more difficult to generate than electricity from fossil fuels. In the case of US Solar Fund, power generation can tumble during cloudy periods. This can have a significant impact on near-term profits and, by extension, shareholder returns.

The good news for US Solar Fund, though is that the four states it operates in receive more sunshine than the national average. The places in which its assets are located are also well distanced from one another. A wide geographic footprint helps mitigate the impact of poor weather in one or two places at group level.

I also like US Solar Fund because of the favourable legislative conditions in the US that makes it easier to operate. In fact President Biden this week announced plans to halve the amount it charges companies to build wind and solar projects on federal land in a bid to boost investment.

A top dip buy

Demand for renewable energy is soaring as public awareness over the climate change issue grows. The West’s need for clean electricity is set to increase further it tries to wean itself off Russian oil in particular.

The US Solar Fund share price has reversed sharply over the past year. And as someone who invests for the long term, this has attracted my attention. It’s my opinion that this penny stock could deliver excellent returns over the next decade and potentially beyond.

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The Works said on Tuesday that “unauthorised access to its computer systems” had caused trading and operating chaos. Some of its stores were forced to close and shop deliveries halted.

The problem of cyber attacks worsened considerably during Covid-19 lockdowns. And it’s expected to keep growing strongly as the world becomes more digitalised.

Soaring sales

With a market cap of just £63m Corero Network Security doesn’t have the clout of the industry’s major players. It will have to work extremely hard then to succeed in this ultra-competitive sector.

But I’m impressed by the rate at which Corero is winning business. The tech giant added 44 new customers in 2021 and saw revenues soar 24% year-on-year. It said in January that its “strong momentum” has continued into 2022 too and that it is investing additional resources this year to bolster growth.

Worth the price

It’s important to know that Corero shares look expensive today. At around 12.75p the penny stock trades on a forward price-to-earnings (P/E) ratio of 141 times.

This is the kind of sky-high rating that might prompt a share price correction if company news flow begins to disappoint. For example if those competitive pressures start to hit revenues growth.

Still, it’s my opinion that Corero’s solid momentum — tied with the rate at which the cyber security market is tipped to keep growing — means that a premium share price is warranted.

Another great penny stock

Getting exposure to the housebuilding sector is another good investment idea today. Property prices continue to soar and Brickability Group (LSE: BRCK) could be a good way to exploit this phenomenon.

As you can probably gather Brickability makes the products that are essential in home construction. Many housebuilders are supercharging build rates as demand continues to exceed supply. A steady stream of positive industry data leads me to think that they’ll remain super busy on the construction front too.

Halifax data today shows average house prices up 11% year-on-year in March. A new record high of £282,753 was also up 1.4% from February, the largest on-month increase for six months.

A dirt-cheap UK share

Of course firms like Brickability could be hit by incoming interest rate rises in 2022. The Bank of England is tipped to step up rate hikes in what could be a blow to buyer affordability.

But so far rate rises and the increasing cost of living is failing to cool the British housing market. And besides, I think Brickability’s dirt-cheap share price reflects this threat.

At 93.5p per share the brickmaker carries a forward price-to-earnings growth (PEG) ratio of 0.3. This is well below the widely-regarded bargain watermark of 1. I’d happily buy Brickability alongside Corero Network Security right now.

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