3 cheap penny stocks to buy in an ISA
I am looking for the best penny stocks to buy for my stocks and ISA stocks. The near-term outlook for global equity markets is uncertain as the economic recovery cools. But as someone who invests with a long-term view, the possibility of market turmoil in the immediate future has not put me off.
Here are two cheap UK stocks that caught my eye.
The trendy penny stock
There are a lot of things that I like Group N Brown (LSE: BWNG) as a retail share. This clothing store – whose offerings see it focusing on fashion and other products for tall and older customers – sells its products at lower prices than some of its competitors. This gives it the same growth potential as Associated British foods ” Primark, a business that is growing rapidly as modern buyers demand more and more for their money.
It’s clear that N Brown’s niches give it an edge in an incredibly competitive retail industry. And they also give the penny stock exposure to two rapidly growing market segments. But it won’t matter if the current supply chain problems persist. Figures from the Office for National Statistics show that 11.1% of clothing retailers were unable to get merchandise to sell in August.
Still, N Brown is trading at 52.5 pence per share. This means that it has a 7 times lowest futures price / earnings (P / E) ratio, well below the bargain benchmark of 10 times and less. I think that’s great value given the retailer’s long-term outlook.
Cheap British mining action on my radar
I think Serabi Gold (LSE: SRB) is another stock to buy today. It’s not just because production is skyrocketing right now (its production between April and June hit its highest level since 2019). Nor is it because the British mining share continues to publish excellent exploration results for its Brazilian assets. This is because I think the prices of precious metals might be about to skyrocket again.
Inflationary pressures continue to grow not only in Britain but around the world. This is the result of frenzied money printing by central banks and intense supply chain problems. And that bodes well for gold, a safe haven asset that rises as the value of paper currencies erodes. However, I believe that the rise in prices is not the only phenomenon that could push up the prices of precious metals. New geopolitical tensions between China and the West, and a slowing economic recovery as cases of Covid-19 increase, are other reasons why demand for gold could explode.
There is no guarantee that Serabi Gold will be able to capitalize on a positive pricing environment, of course. The nature of extracting metal from the ground is extremely complex and production stoppages are frequent. However, I would say these threats are mirrored by Serabi Gold’s low share price. The penny stock is currently trading at 64.5p. This allows him to process a forward multiple P / E of just 6 times.
Inflation is Coming: 3 Actions to Try to Protect Against Rising Prices
Make no mistake … inflation is coming.
Some people are scared, but we think there is one thing we should avoid doing at all costs when inflation hitsâ¦ and this is it. nothing.
Money left in the bank can often lose value every year. But for savers and savvy investors, or consider putting their money down is the million dollar question.
That’s why we’ve written a brand new special report that unveils 3 of our top ideas for action in the UK and US to try and better hedge against inflation …
… because no matter what the economy does, a smart investor will want their money to work for them, inflation or not!
Best of all, we’re offering this report completely FREE today!
Royston Wild has no position in any of the stocks mentioned. The Motley Fool UK recommended Associated British Foods. The opinions expressed on the companies mentioned in this article are those of the author and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. At The Motley Fool, we believe that considering a wide range of ideas makes us better investors.