15 UK Shares To Invest In 2021 That Are Both Cheap and Profitable

Last Updated September 6th 2021
10 Min Read

The UK stock market is currently attracting increased attention from both domestic and international investors. In contrast to the US market, which is looking over-priced by almost any metric you care to pick, the UK market has a great combination of globally-known blue-chip stocks as well as smaller more growth-oriented SMEs. The continued unlocking has seen a strong rebound in economic activity, and expectations are high that the market will consolidate it’s gains and climb higher in the final quarter of 2021.

In this article, we take you on a whistle-stop tour through 15 UK stocks that look great right now. These stocks are all cheap but have great upside potential and could make you a lot of money in the years ahead! Other than that, these stocks will have little in common – some will be large-cap, some small, some medium, and a wide array of sectors will be represented.

Top 15 UK Shares To Invest In That Are Both Cheap and Profitable

 

If you are confused about which UK stock to invest in, then read along. Below, you will learn about the top 15 UK shares that are both cheap and profitable.

1. Rolls-Royce

We begin with a household name the world over. Known for their engineering expertise and reputation for quality, Rolls Royce has had a tough past 18 months due to the almost total closure of the global travel industry. But, with planes starting to take off again and holidays being booked, Rolls Royce will expect a bug uptick in their aerospace engineering business. As such, Rolls Royce looks cheap but with big upside potential right now.

Check Out: 3 UK Shares To Buy Now At Massive Discounts

2. Just-Eat

The company that made takeaway food available via its easy-to-use app and led the food service revolution was recently ranked by Morningstar as just outside its top 10 most undervalued global companies. This shows there is a lot of value to be gained by buying and holding Just-Eat stock. The UK company has plans to expand its international operations, and the change to how many consumers access fast food which Just-Eat led is definitely a change which is here to stay.

3. Best of the Best

Next up, and in contrast to the first two picks highly unlikely to be something many readers have heard of, is comparison website Best of the Best. Listed on AIM, the market for SME’s who don’t meet the capital requirements to be included on the main London market., competition website Best of the Best is the best performing AIM stock since 2013, with an incredible gain of 7,130%. Best of the Best still has further to run, however, with further expansion plans afoot.

4. Greatland Gold

Sticking with Aim for the time being, next up is gold miner, Greatland Gold. In general, AIM is a great place to hunt for cheap and profitable shares, and you can have an advantage here in comparison to the main market simply because the stocks listed on Aim are less well analyzed than those in the FTSE 100, for example. Greatland Gold has achieved a stellar 6,300% return since 2013, so trails Just-Eat but has still massively outperformed.

5. Eurasia Mining

It’s a similar story with Eurasia Mining. Also AIM-listed, this company mines platinum as well as gold and other precious metals. Importantly, these metals have both industrial and less practical applications, meaning demand is usually solid. Eurasia Mining has achieved very impressive results over several years and can boast of a 3,650% return since 2013. The booming gold price since the start of the pandemic has helped supercharge both Eurasia Mining and Greatland Gold’s gains.

6. Victoria

Victoria manufacture flooring for up-market residential and office developments. The continuation of the government Help to Buy scheme in the UK has seen demand stay robust in this market, and this has helped Victoria to be one of the most promising UK small company stocks recently. Victoria has also gained just over 6,000% since 2013, and so is another example of the kind of spectacular returns that keep investors hunting for cheap companies that have great growth potential.

7. Impax Asset Management Group

Next up is Impax, which is an ESG focused asset manager. Riding the never-ending wave of ESG related interest in the financial services sector, Impax has carved out a niche in this growing market. By specializing in ESG, they have been able to consistently grow their customer base and maintain good fundamentals despite the increasing level of competition in this sector. Impax has returned just over 4,000% since 2013.

8. Tower Resources

A more controversial pick is the African oil and gas firm, Tower Resources. They have had a tough few years, both due to internal management issues and the generally negative climate for fossil fuel firms. However, sometimes you can gain a lot by taking a risk on a down but not out company. Tower Resources is up 30% so far in 2021 due to the slow recovery in oil demand, and may yet have further to climb. Tower Resources could be one to look closely at for investors who like to focus on companies who have sunk but are on the way back up.

9. Fevertree Drinks

Fevertree is a producer of luxury mixers aimed at hotels, bars and to a lesser extent the supermarket sector. Fevertree’s mixers are becoming very well known, and the stock has rocketed many multiples since the company was founded back in 2004. Fevertree now market their luxury products around the world, and sales in the US and Europe are especially promising. That said, right now shares are down about 15% from their 2021 peak, so now could well be the right time to buy into this success story which began on the Aim market over a decade ago.

Read Also: 5 Explosive UK Shares To Buy Right Now

10. BHP Group

Back to the world of cheap and profitable blue-stock stocks now, with mining giant BHP. These shares have lost nearly 10% over the last month, but there are good reasons to think this is a dip you should be buying. BHP’s shares have slid since it announced it was to sell its oil division and to refocus elsewhere. This will means short-term pain in terms of lost revue, but long term this should be a good move for the company as it looks to focus on where it can make long term profits. The iron ore business is where BHP’s future revenues lie, and focusing on that shouldn’t be seen as bad thing.

11. Quantum Blockchain Technologies

A tech pick next. Quantum Blockchain Technologies will, according to CEO Francesco Gardin be investing heavily in research into blockchain, artificial intelligence, cryptocurrencies and quantum computing. The firm will then look to leverage the results of its research into practical applications. Alongside this more speculative program, the company will look to make direct investments in target businesses within the technology sector. This is clearly a high-risk pick, as there is no guarantee this company will succeed, but the massive role of blockchain in the economy of the future is beyond doubt by now.

12. Legal & General

Legal and General is one of the UK’s leading providers of life assurance, savings, and investments services. Having been founded in 1836, Legal and general has ridden out many more market ups and downs than most of their competitors. Legal and General maintain a very healthy policy of paying out dividends wherever possible, and the share price has not spiked markedly in 2021. This is why they can be seen a cheap in comparison to many US financial services providers, whose share prices have risen too much of late and make them now over-valued by n=many measurements.

13. Benchmark Holdings

No list of top cheap and profitable stocks for 2021 would be complete without a biotech selection! Benchmark Holdings specialize in using advances in genetics and genomics to breed fish and improve their resistances towards most diseases. This application of biotech is going to be hugely important over the coming decades and sustainability of food supply moves further up the agenda. Benchmark also work on developing food that improves health and reduces mortality, but it is their aquatic research that really has analysts excited.

14. Cerillion

The IT sector also needs to be included here, simply because it has produced so many of the global winners over the last decade. There are definitely things to like about the investment case for AIM-listed software company Cerillion. The shares have produced a 160% total return over the past year, 490% over two years and an astronomical 730% over five years. Cerillion looks like a well-run company with a clear plan for expansion over the coming years.

15. CareTech Holdings

Finally, we end with another AIM-listed growth superstar. CareTech Holdings is a specialist residential care provider who serves the growing market for elderly at home care. This allows elderly people to keep their independence, and theoretically saves the government money on running so many care homes. This market is set to expand very rapidly in the coming years due to the ageing population. Moreover, CareTech stands out from many other small stocks in paying a good and growing dividend. The company managed to grow the annual dividend 9% in the last fiscal year, a very impressive achievement and makes us think this could be well worth a closer look.

Summary

For those who are considering either entering or expanding their holdings of UK stocks, this article has introduced you to 15 stocks that look both cheap and profitable. However, this is not to say that there aren’t risks in holding stocks, far from it! But each of these companies looks worthy of close inspection on the grounds that right now they look affording in price but with considerable potential to increase in value over time. Happy hunting!

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