Top 7 UK Shares to Buy in September
As the month starts, it is time to look for undervalued stocks to add to an equities portfolio.
The following UK stocks look quite attractive at current prices. Here’s why...
Top UK Shares to Buy in September
An aerospace engines maker
The first UK stock to buy in September is Rolls Royce (RR). It stands out as one of the stocks with the potential to outperform the market this month and all through into September.
The stock has been in a V-shaped recovery since July 18th, and with its latest news, this momentum is likely to be sustained in the month.
The latest news indicates that Rolls Royce is on course to hit its revenue forecasts for the year.
The company has attributed this to a cost-cutting drive and a series of asset sales. It announced that through these measures, it had raised GBP 2 billion.
This has helped it offset the slowdown in revenues occasioned by the pandemic.
A positive revenue reaffirmation is a factor that could see this stock perform pretty well through the month.
The company is also making positive projections about the future of its aeroplane engine sales.
According to CEO Warren East, the company expects international travel to recover sooner than its earlier projections.
With vaccine levels in the developed world now at over 50% in the developed world, the company expects to hit its free-cash-flow target of GBP 750 million in 2022.
The CEO also added that the company has enough liquidity to keep it going, even if air travel takes longer than expected to rebound.
For a stock that has been gaining bullish momentum for weeks, this factor could see it perform quite well throughout September.
The company also seems to be getting back to profitability after a turbulent 2020. In the first half of 2021, the company recorded an operating profit of GBP 307 million. That’s a sharp reversal from a loss of GBP 1.63 billion in 2020.
Now that it is cutting costs and core markets are getting back to normal, the second half of the year could be even better.
A combination of the above factors makes it a pretty undervalued British stock to buy in September.
A high-end commercial real estate player
Hammerson PLC (HMSO) may be in what many would consider a declining market due to e-commerce, but there is an opportunity for growth in this stock.
One of the key advantages that this British company has is that it operates in ultra-high-end locations.
This is a market that will keep attracting renters, especially in the high-end fashion market.
This was evident earlier this month, as the company has attracted fashion brand Tommy Hilfiger to its Glasgow and Aberdeen locations.
In a statement, Hammerson has stated the move by Tommy Hilfiger is a pointer to a return in market confidence. This is news that is likely to have a positive impact on this stock all through September.
The company is also quite proactive in adjusting to the changes that are happening in the market.
According to the CEO, Rita-Rose Gagne, they are taking proactive measures to deal with the changing business landscape.
One of the measures the CEO said they are taking is repurposing its real estate spaces into homes, offices, and even hotels.
She added that in the medium term, the biggest opportunity that the company has is in the departmental store market. The company has more than 800k square feet of space, which is prime for short-term leasing.
The company is also proactively moving to get rid of its non-core assets. The goal is to make the company leaner, more agile, and ready to deal with a changing business landscape.
All this points to a growth company, one that is highly undervalued at current prices. It makes for a UK cheap share to buy in September with the potential for value appreciation throughout 2021 and beyond.
A crypto mining company
Argo Blockchain (ARB) is currently a highly undervalued UK stock to buy this month, one that has the potential to outperform many other stocks in the short term.
That’s because the company’s core business is crypto mining, and crypto is bouncing back after about two months in the red.
Since the company’s value is directly correlated to the performance of crypto, the increased bullish tempo in crypto is a bullish signal.
Bitcoin has bounced back off its lows of $29k. It is now trading at the $40k resistance. If the recent push in value is anything to go by, then there is a good chance that it could retest $50k or higher in September.
If this happens, then the entire crypto market will likely rally too, and by extension, the intrinsic of Argo blockchain.
Besides the growing use-value of cryptocurrencies, the company has some interesting changes to its board.
A few days ago, the company announced that it had appointed three directors. The company named Colleen Sullivan, Sarah Gow, and Maria Perrella as non-executive directors. It also named Alex Appleton as an executive director.
All of them have a wealth of experience in different fields that add to the company’s long-term value.
In a statement, the company announced that the new directors would be invaluable to its growth. It added that they would help the company make good progress in its move towards becoming a leader in crypto mining.
These factors point to a well-positioned company for growth in the near term, as the crypto market rebounds.
Argo Blockchain is a stock that makes for a pretty good buy in September with the potential for short-to-medium-term growth.
A restructuring finance services company
Aviva is on a move to refocus its investments back to its core business, making it a good stock to buy in September.
While releasing its quarter one results, the company announced that it had sold its Singapore business, Italian business, and its businesses in Vietnam and Hong Kong over the last couple of months. It had also earlier sold its Turkish business.
According to the CEO, Amanda Blanc, these sales are part of the company’s move to focus all its energies in its core markets in Canada, the UK, and Ireland.
Since these are some of its most profitable markets, its value going forward is likely to go up.
Its financials for Q1 are also likely to play into its price action in September and beyond. The company announced that in the previous year, its business in Ireland and the UK grew by 40%.
One interesting thing to note is that its business is growing in the markets where it is refocusing its energies.
For instance, in the UK and Ireland, assets under management grow to GBP 81 billion. The company’s operating profits also increased to GBP 3.2 billion. This was much higher than the consensus estimate of GBP 2.73 billion.
The stock’s technicals are quite bullish too. The bull’s power indicator, which is quite a good indicator of bullish sentiment has a reading of 39.8 on the monthly charts.
This means buying momentum is on the rise for this stock. Most stochastic technical indicators are strongly bullish on this stock too.
All this points to a highly undervalued company at current prices and the perfect UK undervalued cheap stock to buy and hold all through September.
The real buy signal, though, will come when it tests and pushes through the 50-day simple moving average at GBP 399.24.
It has already pushed through the 50-day exponential moving average at GBP 390.49, confirming rising bullish momentum.
An airline company
EasyJet (EZJ) is a British undervalued cheap stock to buy.
A couple of fundamental factors make this stock a pretty good hold this month. The biggest one is the easing of restrictions due to the increased number of COVID-19 vaccinated people.
The most bullish signal for EasyJet is news that the UK Finance minister is calling for the government to lower the restrictions put in place for travel.
According to the Sunday Times, the minister was warning Prime Minister Boris Johnson that the restrictions in place were hurting the country’s tourism industry.
This is a positive indicator that the world could open up again with vaccination levels rising, which is good for EasyJet.
It makes for a good value buy now that prices are quite depressed after a whole year of being hit by the pandemic.
This stock’s technicals also point to a stock that is quite a viable buy this month.
It made a V-shaped recovery towards the end of July and has been gaining value since then.
It then dipped on the first day of August, but after news about the UK Finance Minister’s statement, it has regained upside momentum.
If this momentum sustains and pushes through the 28th July high of £887.64, it could be on its way to a bullish September.
Most of its monthly technical indicators point to this scenario becoming a reality in the short term.
One of the most essential technical indicators is the 200-day simple moving average. This stock has already pushed through it at GBP 845.03, an indicator of rising bullish momentum.
The RSI reading for this stock is at 45 and rising, indicating that buying momentum is on the rise.
A bakery chain on an expansion path
Greggs (GRG) turned bullish at the start of the month and has been strongly bullish since. Despite its massive rally over the past week, this stock remains a value buy at current prices.
The stock is buoyed by news that the company was opening 100 new stores. Through these stores, it aims to create 500 new jobs.
The company has announced that it was making this move after a recovery from a tough year due to the COVID-19 pandemic.
This is a big validation of the company’s potential in the near term and could see a rally as investors anticipate it to rally all through September.
The technicals also point to stock in pole position for value appreciation in the near term.
One of its bullish technical indicators for this stock is the moving averages. In the rally that started on August 1st, this stock blast through the 50-day, 100-day, and 200-day moving averages.
Other technical indicators that are bullish for this stock are the RSI and the Bull Power indicator. Its RSI has a reading of 70, an indicator that bulls are firmly in control.
The bull power indicator has a reading of 96.5, which means that buying momentum is rising.
The company’s fundamentals, too, are painting a picture of growth. From its books, the company’s revenues are on the rise.
Its revenues for the period ending 3rd July 2021 stood at GBP 546.2 million. This increased 82%, an indicator that demand for the company products is gaining traction.
The company’s cash flows are on a growth trajectory too, and in the six months to 3rd July, it turned positive to GBP 81 million, up from a negative GBP 54 million in December 2020.
All these factors are pointing to an undervalued UK stock to buy this month.
A real estate company
LondonMetric Property (LMP) is in a good position for a buy trade this September. The fundamentals are pointing to a stock that has the potential for long-term growth.
That’s because the British real estate market is on a growth trajectory. Despite the pandemic and the effect it has had on the economy, British real estate valuations have been skyrocketing.
Property valuations this year are up by 10.2%, which is higher than last year and the fastest growth rate in over a decade.
The factors behind the rally notwithstanding, this is good for companies interested in real estate.
LondonMetric is quite a big player on this front and has more than 16 million square feet of space in its management. The company also owns a large portfolio of desirable real estate.
Besides the fast growth of the real estate market, the high vaccination rates play a role in the economic recovery.
This is bound to drive up the demand for this company’s leasehold properties in the near term. By extension, it will drive up the intrinsic value of this stock.
All this points to a British cheap stock to buy at current prices.
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