BYG, III, SGRO: Cheap stocks you may put your money into

Highlights

• BoE has warned that the UK economy may even be moving towards a recession if the inflation and unemployment levels keep rising amid sluggish GDP growth.
• MPC has increased the interest rate to a 13-year high of 1% on 5 May.
• Value stocks tend to perform better than growth stocks amid rising interest rates. 

The UK economy is currently in a turmoil and the situation may worsen over the coming months with the escalation of inflation levels. The households have been facing soaring energy and food bills, and their budgets have been squeezed due to falling real wages. In response to the skyrocketing inflation levels, the Bank of England (BoE) has been going for monetary tightening.

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The Monetary Policy Committee (MPC) of the BoE has been raising the interest rates successively over the past months. The interest rate has been hiked from the pre-pandemic level of 0.1% to 0.25%, 050, 0.75%, and finally to 1% recently on 5 May. Hitting a 13-year high level, the interest rate is expected to go up further if the inflationary situation worsens.

 

VIDEO LINK: https://www.youtube.com/watch?v=lF9vag0DVcI&t=25s

 

The BoE has warned that the UK economy may even be moving towards a recession if the inflation and unemployment levels keep rising amid sluggish GDP growth. As the fear of a recession is rising, the UK investors are keeping an eye on value stocks, which are the stocks that are largely undervalued by the market. Value stocks tend to perform better than growth stocks amid rising interest rates.

Based on P/E and P/E/G ratios which are used to identify value stocks, here are 3 cheap stocks that investors can consider amid the rising fears of recession.

 

RELATED READ: HSBA, AAL, IMB: Stocks you may opt for as recession fears grip UK

 

3i Group plc (LON: III)

The shares of the private equity and venture capital firm, 3i Group plc, were down by 3.52% at 2:42 PM (GMT+1) on 6 May 2022, at GBX 1,262.50. The FTSE 100 company has given its shareholders a return of 2.10% over the last one year as of 6 May 2022. The company’s current market cap stands at £12,734.89 million.

 

RELATED READ: FTSE 100 moves higher after BoE’s rate hike announcement

Segro plc (LON: SGRO)

 

The shares of the property investment and development firm, Segro plc, were down by 6.11% at 2:40 PM (GMT+1) on 6 May 2022, at GBX 1,113.50. The FTSE 100 company has given its shareholders a return of 11.57% over the last one year as of 6 May 2022. The company’s current market cap stands at £14,347.59 million.

Also read: SHEL, AZN, HSBA, RIO, ULVR: Top 5 blue-chip stocks now

 

Big Yellow Group plc (LON: BYG)

The shares of the UK-based self-storage group, Big Yellow Group plc, were down by 3.60% at 2:44 PM (GMT+1) on 6 May 2022, at GBX 1,285.00. The FTSE 250 company has given its shareholders a return of 5.87% over the last one year as of 6 May 2022. The company’s current market cap stands at £2,452.80 million.

Stocks selected from TR based on low PE ratio and PEG ratio less than 1.