2 cheap UK shares I’d buy in my Stocks and Shares ISA

I think these UK shares are very attractive buys for Stocks and Shares ISA investors right now. Here’s why I think they could thrive in 2021.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

UK share markets have had another false start at the start of 2021. After a blistering beginning to January the new bull market ran out of steam almost as quickly as it began. The long-running Covid-19 saga rolls on and continues to play havoc with investor confidence. And it threatens to derail a solid rebound in the global economy this year.

The muddy economic outlook isn’t stopping me from continuing to build my Stocks and Shares ISA, though. This is because there are still plenty of UK shares that I think could record big profits growth in 2021 regardless of the wider economic landscape. It’s also due to the fact that I invest with a view to making returns over a long-term time horizon.

2 UK shares on my ISA radar

It’s a bonus if they can provide faster returns, of course. Here are a couple of shares I’d happily buy for my own Stocks and Shares ISA that I think could start to do well in 2021.

Should you invest £1,000 in J D Wetherspoon Plc right now?

When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets. And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if J D Wetherspoon Plc made the list?

See the 6 stocks

#1: Tharisa

I have just explained why respondents to a London Bullion Market Association (LBMA) survey reckon silver prices will fly in 2021. The same investor concerns and macroeconomic factors (like low interest rates and a weak US dollar) that are anticipated to push the grey metal higher this year are expected to drive the prices of the platinum group metals (PGM) suite too.

The LBMA reckons that average platinum and palladium prices will rise 28.2% and 11.2% respectively in 2021. This creates averages of $1,131.50 and $2,439.10 for the two chief PGMs. The precious commodities are expected to benefit from improved car making as the economic recovery kicks in. And this bodes well for UK shares like Tharisa (LSE: THS), which haul the metals out of the earth.

There are significant risks to Tharisa, of course. The threat of production problems and spiralling costs are two ever-present problems for UK mining shares. Indeed, rampant Covid-19 infection rates and safety issues forced the company to shutter its operations at times in 2020. Still, in my opinion, the company’s low valuation makes it an attractive buy today. Tharisa trades on a price-to-earnings (P/E) ratio of 10 times for the fiscal year to September 2021.

#2: 4Imprint Group

I believe that marketing products maker 4Imprint Group is another good UK value share for 2021. This business trades on a forward price-to-earnings growth (PEG) ratio of 0.2. Any reading below 1 suggests that a stock is being undervalued by market makers.

I can understand why investors might be reluctant to pile into 4Imprint today. The prospect of a bumpy economic recovery could spell havoc for product orders at the company. But for the moment, trading continues to recover and January’s update showed its order intake improved to 70% of 2019 levels in the fourth quarter. This compares with a weekly average of 60% it recorded at the end of October. Advertising budgets recover quickly when economic conditions improve. And this could result in a blockbuster year at this UK share.

But this isn’t the only opportunity that’s caught my attention this week. Here are:

5 Shares for the Future of Energy

Investors who don’t own energy shares need to see this now.

Because Mark Rogers — The Motley Fool UK’s Director of Investing — sees 2 key reasons why energy is set to soar.

While sanctions slam Russian supplies, nations are also racing to achieve net zero emissions, he says. Mark believes 5 companies in particular are poised for spectacular profits.

Open this new report5 Shares for the Future of Energy — and discover:

  • Britain’s Energy Fort Knox, now controlling 30% of UK energy storage
  • How to potentially get paid by the weather
  • Electric Vehicles’ secret backdoor opportunity
  • One dead simple stock for the new nuclear boom

Click the button below to find out how you can get your hands on the full report now, and as a thank you for your interest, we’ll send you one of the five picks — absolutely free!

Grab your FREE Energy recommendation now

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended 4imprint Group. 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.

More on Investing Articles

ISA coins
Investing Articles

Here’s how an investor could earn £27 of weekly income for life from a £20k Stocks and Shares ISA

Christopher Ruane outlines how an investor could turn their Stocks and Shares ISA into a passive income generation machine for…

Read more »

Warren Buffett at a Berkshire Hathaway AGM
Investing Articles

3 things Warren Buffett looks at when hunting for shares to buy

Our writer explores a trio of simple-but-powerful ideas that inform Warren Buffett's choices when he's looking for shares to buy.

Read more »

many happy international football fans watching tv
Investing Articles

Is ITV the best FTSE bargain stock about today?

ITV has a streaming platform and the stock looks great value. But is this enough to justify investing in the…

Read more »

Middle-aged white man wearing glasses, staring into space over the top of his laptop in a coffee shop
Investing Articles

Lloyds shares recently hit a 52-week high — is it too late to consider buying?

Lloyds shares have been on a roll in the past year. But is there still value for investors, or has…

Read more »

Two business people sitting at cafe working on new project using laptop. Young businesswoman taking notes and businessman working on laptop computer.
Investing Articles

Want to start buying shares with under £500? It’s possible – here’s how!

The stock market isn't just for millionaires. This writer thinks someone with just a few hundred pounds to spare could…

Read more »

Tesla building with tesla logo and two teslas in front
Investing Articles

Here’s how much £150 invested in Tesla stock 10 years ago is worth now!

Christopher Ruane looks back on how Tesla stock has performed over the past decade and sets out his investing plan…

Read more »

Young mixed-race couple sat on the beach looking out over the sea
Investing Articles

5 steps to start earning passive income this summer, for £5 a day

With a fiver a day, this writer reckons it's possible for someone to set up passive income streams in the…

Read more »

Rear View Of Woman Holding Man Hand during travel in cappadocia
Investing Articles

£20,000 invested in this 5-stock ISA could generate a £1,400 second income

Our writer highlighs five dividend shares from the FTSE 100 blue-chip index that could form the basis of an attractive…

Read more »