Image Source: Getty Images
These cheap stocks are trading at a price-earnings (P/E) ratio well below the 10x benchmark. This is why I would buy them today and look to keep them for years to come.
Pan African Resources
Buying gold shares could be a good idea as prices for the yellow metal skyrocket. Pan African Resources (LSE:PAF) is a mining stock on my radar because of its incredible value.
He AIM shares are trading with a forward P/E ratio of just five times. Meanwhile, its corresponding dividend yield stands at a juicy 5.5%.
The bullion price has soared in the past few hours through the $2,000 per ounce level. With this key technical level passed, and concerns continue to mount over US and European banks, a rally to new all-time highs could be imminent.
In fact, having exposure to gold can be a good idea for investors at any time. It can protect an individual’s wealth when the crisis strikes unexpectedly and the prices of riskier assets like UK stocks plummet.
Holding gold producing stocks can be a turbulent business at times. Production problems can be common, and profits can take a big hit. In fact, power supply problems have affected Pan African Resources’ own production in recent months.
However, I think the potential benefits of buying this South African miner outweigh this risk. It has a number of exciting growth projects in its pipeline. And last week it sealed the financing for the construction of the Mintails gold asset, a project that, according to the company, “significantly” will contribute to the group’s production for the next two decades.
Kape Technologies
UK stocks that specialize in IT services lack the scale and consumer recognition of their US counterparts. Kape Technologies (LSE:KAPE), for example, is a small fish compared to digital security rivals, including NortonLifeLock, IBM, and Microsoft.
However, the rate at which the cyber protection sector is growing still makes British companies deserve serious attention in my book. McKinsey & Company analysts believe the global market could eventually be worth between $1.5 trillion and $2 trillion, a significant increase from the current $150 billion.
The impressive recent trade in Kape illustrates the enormous opportunity here. The number of paying customers on its books skyrocketed 12% in 2022 to 7.4 million. This helped revenue soar to a better-than-expected $623 million from $230.7 million a year earlier.
Recent successes explain why IT experts have been the subject of a takeover bid by Unikmind, a company owned by majority shareholder Teddy Sagi. The offer of 285 pence per share was rejected, but a new approach could only be a matter of time.
City analysts expect Kape’s strong record of annual earnings growth to continue into 2023. This leaves the company operating at a minimum forward P/E ratio of just 5.5 times.
At these levels, I think the AIM company might be too cheap to pass up. In fact, if I have extra money to invest, I’ll be looking to add it to my own UK stock portfolio.
var config = {
apiKey: ‘1ed121d592e04642d57912bb369ef696621661a3’,
product: ‘PRO_MULTISITE’,
logConsent: false,
notifyOnce: false,
initialState: ‘NOTIFY’,
position: ‘LEFT’,
theme: ‘DARK’,
layout: ‘SLIDEOUT’,
toggleType: ‘slider’,
iabCMP: false,
closeStyle: ‘button’,
consentCookieExpiry: 90,
subDomains : true,
rejectButton: false,
settingsStyle : ‘button’,
encodeCookie : false,
accessibility: {
accessKey: ‘C’,
highlightFocus: false },
onLoad: function () { // hide Cookie Control recommended settings button.
var recommendedSettingsButton = document.getElementById(‘ccc-recommended-settings’);
if (recommendedSettingsButton) {
recommendedSettingsButton.classList.add(‘hide’);
} },
text: {
title: ‘Privacy Notice’,
intro: ‘This site uses cookies, pixels, and other similar technologies to improve your web site experience and to deliver you personalised ads about our own and third party products and services. Please read more about how we collect and use data about you in this way in our Cookies Statement in our Privacy Policy. You can change your cookie settings in your browser at any time. ‘,
necessaryTitle: ”,
necessaryDescription: ”,
thirdPartyTitle: ‘Warning: Some cookies require your attention’,
thirdPartyDescription: ‘Consent for the following cookies could not be automatically revoked. Please follow the link(s) below to opt out manually.’,
on: ‘On’,
off: ‘Off’,
accept: ‘Accept’,
settings: ‘Cookie Preferences’,
acceptRecommended: ‘Accept Recommended Settings’,
notifyTitle: ‘Privacy Notice’,
notifyDescription: ‘This site uses cookies, pixels, and other similar technologies to improve your web site experience and to deliver you personalised ads about our own and third party products and services. Please read more about how we collect and use data about you in this way in our Cookies Statement in our Privacy Policy. You can change your cookie settings in your browser at any time. ‘,
closeLabel: ‘Save Preferences and Close’,
accessibilityAlert: ‘This site uses cookies to store information. Press accesskey C to learn more about your options.’,
rejectSettings: ‘Reject All’,
reject: ‘Reject’,
},
branding: {
fontColor: ‘#fff’,
fontFamily: ‘Arial,sans-serif’,
fontSizeTitle: ‘1.2em’,
fontSizeHeaders: ‘1em’,
fontSize: ‘1em’,
backgroundColor: ‘#313147’,
toggleText: ‘#fff’,
toggleColor: ‘#2f2f5f’,
toggleBackground: ‘#111125’,
alertText: ‘#fff’,
alertBackground: ‘#111125’,
acceptText: ‘#ffffff’,
acceptBackground: ‘#111125′,
buttonIcon: null,
buttonIconWidth: ’64px’,
buttonIconHeight: ’64px’,
removeIcon: false,
removeAbout: false },
necessaryCookies: ( ‘wordpress_*’,’wordpress_logged_in_*’,’CookieControl’,’PHPSESSID’,’fivc’,’fivs’,’fivp’,’Ookie’,’Fool_subinfo’,’_gads’,’_gid’,’_gat’,’_ga’,’__utma’ ),
optionalCookies: (
{
name: ‘Sharing’,
label: ‘I would like content tailored to my personal preferences.’,
description: ‘We work with advertising partners to show you ads of products and services you may be interested in. You can choose whether or not to have ads delivered in a personalised way by setting this option. You can return to review this setting at any time by clicking the "C" logo in the bottom left corner of any page.’,
cookies: ( ‘_ga’, ‘_gid’, ‘_gat’, ‘__utma’, ‘_gads’ ),
onAccept: function () {
// Add Facebook Pixel
!function(f,b,e,v,n,t,s)
{if(f.fbq)return;n=f.fbq=function(){n.callMethod?
n.callMethod.apply(n,arguments):n.queue.push(arguments)};
if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version=’2.0′;
n.queue=();t=b.createElement(e);t.async=!0;
t.src=v;s=b.getElementsByTagName(e)(0);
s.parentNode.insertBefore(t,s)}(window,document,’script’,
‘https://connect.facebook.net/en_US/fbevents.js’);
fbq(‘init’, ‘901682110316659’);
fbq(‘track’, ‘PageView’);
fbq(‘consent’, ‘grant’);
// End Facebook Pixel
// Enable Google ad personalization
// gtag (‘set’, ‘allow_ad_personalization_signals’, true ) ;
},
onRevoke: function () {
fbq(‘consent’, ‘revoke’);
// Enable Google ad personalization
// gtag (‘set’, ‘allow_ad_personalization_signals’, false ) ;
},
recommendedState: ‘on’,
lawfulBasis: ‘consent’,
},
),
statement: {
description: ”,
name: ”,
url: ‘https://www.fool.co.uk/help/privacy-and-cookie-statement/’,
updated: ”
},
};
CookieControl.load(config);
