- Inflation is rapidly reducing the value of the hard-earned money of households.
- Investing in value stocks is a great way to protect and grow your savings while beating inflation.
- Value stocks generally have a low P/E ratio and a P/E/G ratio of under 1.
The cost-of-living crisis facing the UK has been escalating, and the economic outlook appears to be darkening, with inflation outstripping the 10% mark. Prices of all things, especially necessities like fuel and food, have been hitting the roof. The costs of essential items have been hurting all households, but the poorer ones are the worst sufferers, as they spend a large proportion of their overall incomes on these necessities.
Not just households, businesses across sectors are also suffering due to rising operating costs, and they are being forced to pass on these costs to customers, or they face the risk of collapsing. Unlike households, businesses aren’t even protected by Ofgem’s energy price cap, meaning that there’s no limit to which their costs may surge.
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In October, the energy price cap is being raised again with the growing prices, which is expected to deteriorate the ongoing inflationary crisis further. Inflation is rapidly reducing the value of the hard-earned money of households. Investing in value stocks is a great way to protect and grow your savings while beating inflation.
Value stocks generally have a low P/E ratio and a P/E/G ratio of under 1. Based on these criteria, Kalkine Media® explores the following value stocks that UK investors can consider.
Glencore PLC (LON: GLEN)
The market cap of the commodity trading and mining business, Glencore plc, stands at £61,687.49m as of Thursday. GLEN shares were trading at GBX 442.30, down by 6.55%, at 1:52 PM (GMT+1) on 1 September. The EPS (earning per share) of the FTSE 100 constituent stands at 0.38, and it has a P/E ratio of 4.61. Glencore investors are offered an annual dividend yield of 4.5%, along with one-year and YTD (year-to-date) returns of 34.97% and 17.75%, respectively.
Harbour Energy plc (LON: HBR)
The market cap of the greatest North Sea operator, Harbour Energy plc, stands at £4,238.00m as of Thursday. HBR shares were trading at GBX 477.80, up by 0.17%, at 1:57 PM (GMT+1) on 1 September. The EPS of the FTSE 250 constituent stands at 0.12, and it has a P/E ratio of 5.17. Harbour Energy investors are offered an annual dividend yield of 1.9%, along with one-year and YTD returns of 33.85% and 34.83%, respectively.
Airtel Africa plc (LON: AAF)
The market cap of the globally operating telecom firm, Airtel Africa plc, stands at £4,972.02m as of Thursday. AAF shares were trading at GBX 130.70, down by 1.21%, at 1:59 PM (GMT+1) on 1 September. The EPS of the FTSE 100 constituent stands at 0.09, and it has a P/E ratio of 8.65. Airtel Africa investors are offered an annual dividend yield of 3.1% and one-year returns of 40.40%. However, its YTD return is currently negative, at -2.39%.