Looking for the best value stocks to buy today? Here are two I think could be too cheap to miss.
The dirt cheap miner
Copper stocks have soared in 2024, thanks to a resurgent red metal price. Central Asia Metals (LSE:CAML), for instance, is up 11% since the turn of the year. Yet to my mind it’s still a brilliant bargain at 203p per share.
Today, the AIM miner trades on a forward price-to-earnings (P/E) ratio of 8.9 times. It also deals on a price-to-earnings (PEG) ratio of 0.3. Any reading below 1 suggests a share is undervalued.
To sweeten Central Asia’s investment case, the dividend yield for 2024 sits at a stunning 8.4%.
The company operates the Kounrad copper mine in Kazakhstan. It also owns the Sasa lead-zinc mine in North Macedonia.
Demand for all of its metals is tipped to boom as sales of electric vehicles (EVs) steadily increase. It’s why BHP Group has in recent days tabled a £31.1bn takeover offer for Anglo American to boost its copper division.
Some commodity analysts think demand from EVs and related charging infrastructure will double to 5.5m tonnes in 2035. And with new mining projects thin on the ground, copper prices — and by extension profits across the mining sector — could shoot through the roof.
Central Asia’s share price could slump if economic conditions worsen and commodities demand follows suit. But a robust long-term outlook, combined with the cheapness of its shares, makes the miner a top buy, in my book.
The property powerhouse
Tritax Eurobox (LSE:EBOX) is another great UK share with a brilliant blend of low P/E ratios and gigantic dividend yields.
The business — which owns and lets out distribution hubs and warehouses in mainland Europe — trades on a forward earnings multiple of 11.3 times at current prices of 53p.
Its dividend yield meanwhile, clocks in at 8.2%. This is more than double the 3.4% average for all FTSE 250 shares.
Tritax’s operations couldn’t be more different to those of Central Asia Metals. But as with the copper market, supply in the logistics and storage property market is failing to keep up with demand. And this is driving rents at the business rapidly higher.
Like-for-like rental income jumped 4.5% in the 12 months to September. This was up from 3.6% and 2.8% in the previous two years.
The company’s fortunes are linked to the broader economic landscape. So its ability to grow earnings could be compromised if interest rates remain at or near recent highs.
However, those supply shortages I mentioned is helping to support steady rental growth and impressive income collection. Tritax has collected 100% of the rents it’s owed in each of the past three years.
The company’s blue-chip tenant base also helps it to navigate difficult economic conditions. Its major customers include Amazon, Puma, Mango and Lidl.
I think Tritax Eurobox is one of the UK’s most attractive property stocks today.
The post 8%+ dividend yields! 2 top value stocks to consider buying in May appeared first on The Motley Fool UK.
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Amazon. Views expressed on the companies mentioned in this article are those of the writer 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 considering a diverse range of insights makes us better investors.
