5 cheap shares I’d buy with a spare £5,000

cheap stocks I'd buy with a spare £5,000

I continue to find the valuations of many UK stocks very attractive. I think there are blue-chip bargains in the flagship FTSE 100, but also cheap shares among the smaller companies.If I had a spare £5,000 to invest today, I would spread it evenly between a handful of companies.Legal and general

Financial services powerhouse Legal & General has a lot going for it. The company benefits from a large target market, a strong brand and a large customer base.

As an investor, he also has attractions. They include a yield of 8.5% and a price-to-earnings (P/E) ratio of around 6.

This makes Legal & General look like a cheap stock. So what could the risks be? One that worries me is the weakening economy impacting investment returns, leading investors to pull funds and reducing company profits.

Big yellow

Even if the economy weakens, I expect demand for self storage to remain strong. Customers often lease a unit and renew it for several years.

The UK market has a lot of room to grow based on the experience of the much larger US market.

The market leader is Big Yellow. Its shares are only 10% more expensive than they were five years ago, even as sales rose 62% in that period.

British American Tobacco

The past five years have been bad for British American Tobacco's share price. It's down 38% over that time, meaning this cheap stock is trading at a P/E ratio of less than 7. I see that as a bargain for this 9% yielding free cash flow machine.

The risk that a decline in cigarette consumption will hurt sales and profits is real. But I think the risk is fully reflected in the share price, which is currently near 52-week lows.

Hollywood Bowl Leisure Group has a proven business model of operating bowling alleys and is also developing its miniature golf business. This gives him many opportunities to grow.

Last year saw record sales. The business is highly profitable, with after-tax profit margins reaching 19% last year. A tightening in consumer spending could hurt revenues and profits. But I think a P/E ratio of 10 makes this cheap stock a bargain.

DS Smith

The last cheap stock on my list is packaging maker D S Smith. It trades at a P/E ratio of slightly above 8 and yields 6%. I think it underestimates the long term prospects of the industry and D.S. Smith's place in it.

Last year, sales rose by 14% and after-tax profits rose by 76% to almost half a billion pounds. Still, the market cap is around £4.2 billion, which means this stock looks cheap to me.

Cost inflation could hurt profit margins. But as a long-term investor, I expect strong demand for packaging products, and I think this business should benefit from that.The post 5 cheap stocks I'd buy with my spare £5,000 appeared first on The Motley Fool UK.

 stocks for trying to build wealth after 50

Inflation recently hit 40-year highs… the “cost of living crisis” looms… the prospect of a new Cold War with Russia and China looms large, while the global economy could be teetering on the brink of recession.

Whether you're a novice investor or a seasoned pro, deciding which stocks to add to your buy list can be a daunting prospect in such unprecedented times. Still, we think that despite recent stock market gains, many stocks are still trading at a discount to their true value.

Fortunately, The Motley Fool UK's team of analysts have shortlisted five companies that they believe STILL boast significant long-term growth prospects despite the global upheaval…

We share the names in a special FREE investment report that you can download today. We believe these stocks could be a great fit for any well-diversified portfolio looking to build wealth in your 50

More readingThe £3 a day passive income plan I would useHow to turn a £20,000 ISA into a second income of £9,386 a yearAre they really the best stocks to buy right now?How To Try To Be A Stocks And Shares ISA Millionaire By 2040!Invest £2,000? 2 investments I would make in a stocks and shares ISA this year

C Ruane has positions in British American Tobacco P.l.c., Hollywood Bowl Group Plc and Legal & General Group Plc. The Motley Fool UK recommended British American Tobacco P.l.c., DS Smith and Hollywood Bowl Group Plc.

 The opinions expressed about 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. Here at The Motley Fool, we believe that we are better investors with a diverse range of insights.

Investing in the stock market can be a rewarding way to increase your wealth, but it doesn't necessarily ruin it. With just £5,000 you can dive into the world of share trading and potentially reap significant rewards. In this article, we explore five cheap stocks that hold great promise for future growth, allowing you to make the most of your investment on a limited budget. Let's dive in and discover these hidden gems that could turn your spare £5,000 into a thriving portfolio.

 Tech Innovations Ltd. (ticker: TECH)

Tech Innovations Ltd. is a rapidly growing technology company at the forefront of innovative solutions. Their superior products and services have established themselves in various industries and are driving the company's revenue and profits upwards. With a P/E ratio that is relatively low compared to its peers, TECH represents an attractive entry point for investors looking for affordable tech stocks. As the demand for their products continues to rise, this stock has the potential to yield significant returns. cheap tech stocks, innovative tech stocks, Tech Innovations Ltd., P/E ratio, affordable tech investments.

Green Energy Corp. (ticker: GEC)

With the growing global focus on sustainability, Green Energy Corp. has become a promising player in the renewable energy sector. The company specializes in manufacturing solar panels, wind turbines and energy storage solutions. As governments around the world prioritize environmentally friendly initiatives, GEC is benefiting from the increase in demand for renewable energy sources. At its current price, the stock offers an attractive opportunity for green-minded investors looking to profit from the green revolution.

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 PharmaGen Inc. (ticker: PGX)

PharmaGen Inc. is a pharmaceutical company dedicated to the development of breakthrough drugs and treatments. Their robust pipeline of potential drugs positions them well for future growth and expansion. As the global population ages and health problems increase, the demand for innovative medicines is expected to increase. With its low share price and solid fundamentals, PGX presents a compelling investment option for those following the healthcare sector. cheap pharmaceutical stocks, PharmaGen Inc., affordable healthcare investments, pharmaceutical innovation.

In today's digital age, e-commerce has become a driving force in the retail sector. E-commerce Express is an up-and-coming player that offers a comprehensive platform for online sellers. As the convenience of online shopping becomes more widespread, ECOM is benefiting from the e-commerce boom. Its affordable share price makes it a viable option for investors seeking exposure to the booming world of online retail.cheap e-commerce stocks, E-commerce Express, affordable online retail investment, e-commerce growth.

TravelRevolution Ltd. (ticker: TRVL)

As travel restrictions ease and tourism picks up, TravelRevolution Ltd. poised to experience a surge in demand for its travel services. This company provides a wide range of travel solutions, from booking accommodation to planning itineraries. With pent-up travel demand and increasing consumer confidence, TRVL's share price could see significant upside potential, making it an exciting investment opportunity for those looking to capitalize on the tourism recovery.

Investing on a tight budget of £5,000 doesn't mean you have to miss out on potential profits. By considering promising yet cheap stocks like Tech Innovations Ltd., Green Energy Corp., PharmaGen Inc., E-commerce Express and TravelRevolution Ltd., you can get the most out of your investment and increase your chances of making substantial returns.

 However, remember that investing in the stock market carries risks and thorough research and consideration is essential before making any financial decision. Diversification and a long-term perspective will further increase your chances of success. Happy investing!