- LSE has had a continuous influx of investments despite the Covid crisis and record high inflation
- As the current economic climate is uncertain, investors can shop for dirt-cheap stocks right now.
The stock markets witness an inflow of investors regardless of the economic conditions. The London stock exchange, for instance, has had a continuous influx of investments despite the Covid crisis and record high inflation.
The current economic climate and the underperformance of the UK stocks are quite suitable factors for investors to shop for dirt-cheap stocks right now. This excellent buying opportunity must not be missed out, so here’s a mix of growth stocks, penny stocks, and dividend stocks that you can buy now to maximise the returns from your investment portfolio.
Ibstock plc (LON: IBST)
UK-based Ibstock plc is into production of clay bricks and concrete ingredients for the construction industry. Being a leading brick manufacturer in the UK, this stock is worth considering as it will play a significant role in the upcoming construction boom due to rising demand of houses. There has been housing market boom in the UK since the beginning of the pandemic. With the Government ending the stamp duty and prices touching record highs, house builders are at an advantage, and thus companies like Ibstock are expected to increase their profits next year.
With a price-to-earnings growth (PEG) ratio of 0.5, the stock is undervalued, and a 20% increase in its earning potential is expected by next year as per analysts. The company has a strong track record, significant market share, and also offers dividend to its shareholders.
The FTSE250-listed company has a current market cap of £832.37 million and even though it has given a negative return of 1.17% to its shareholders in the last one year, its returns are expected to go up in 2022. Ibstock plc’s shares were trading at GBX 203.20 as of 24 November 2021 (GMT).
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Staffline Group Plc (LON: STAF)
Staffline Group Plc is a leading recruiting organisation in the UK. It outsources human resource services and help companies in fulfilling their staffing and employability needs. As we move towards 2022, this penny stock is worth considering, as Britain’s job market outlook looks bright, and workers are expected to switch employment in the upcoming months. This is going to work well for Staffline as its helps people look for suitable jobs and is also engaged in providing employees with training services.
Robust sectors like e-commerce and food production aren’t expected to stop the recruiting process, which is good for the recruitment company as it can help in offsetting the impact from sectors that have reduced or stopped the recruitment process.
Its current market cap is £99.46 million and given a return of 39.21% in the last one year. Staffline Group Plc’s shares were trading at GBX 60.00 as of 24 November 2021 (GMT).
Begbies Traynor Group plc (LON: BEG)
Professional services consultancy Begbies Traynor Group plc specialises in corporate restructuring and offers independent professional advisory across a range of issues, like corporate and commercial finance. This cheap dividend stock is worth buying in the current economic set-up with inflation touching record highs along with growing supply chain constraints.
As the UK economy is going downhill, Begbies Traynor Group plc is expected to do well as it offers recovery services to companies and thus will potentially capitalise on the increasing number of unfortunate corporate casualties next year. The company comes to the financial rescue of business as well as individuals struggling with corporate insolvencies.
With a price-to-earnings growth (PEG) ratio of 0.5, the stocks of the company are potentially undervalued, and this is a good time to buy the cheap dividend stock, which is giving out 2.3% dividend for the financial year to April 2022.
The current market cap is £207.26 million and has given a return of 49.78% in the last one year. Begbies Traynor Group Plc’s shares were trading at GBX 136.20 as of 24 November 2021 (GMT).