In this article, we discuss the 5 best undervalued UK stocks to buy now. If you want to read our detailed analysis of the undervalued stocks, go directly and see the 10 Best Undervalued UK Stocks to Invest In.
5. Taylor Wimpey plc (LSE:TW.L)
Number of Hedge Fund Holders: N/A
P/E Ratio: 11.68
Taylor Wimpey plc (LSE:TW.L) is a Blackpool-based housebuilding company, which builds approximately 15,000 houses in the UK annually. The company ranks fifth on our list of the best undervalued UK stocks to buy now.
Taylor Wimpey plc (LSE:TW.L) experienced a profitable 2020 as the company generated revenue of £2.79 billion during that year. Moreover, the stock gained 24.9% in the past year, after reaching its all-time low of GBX 101.5 in March 2020, and is currently traded at GBX 149.4. Taylor Wimpey plc (LSE:TW.L) pays an annual dividend of GBX 8 per share, yielding at 5.35%, with a dividend payout ratio of 60.15%.
This August, Barclays raised its price target on Taylor Wimpey plc (LSE:TW.L) to GBX 205, while maintaining an Overweight rating on the shares. The company has a trailing twelve months PE ratio of 11.68.
4. ITV plc (LSE:ITV.L)
Number of Hedge Fund Holders: N/A
P/E Ratio: 11.47
The British multinational media company, ITV plc (LSE:ITV.L) stands fourth on our list of the best undervalued UK stocks to buy. In April 2020, the company’s shares slumped, reaching GBX 54.42, due to the Covid-related market clampdown. However, in the past year, the stock returned 36.90% and is expected to grow by 24.3% in the coming years.
Recently, Morgan Stanley raised its price target on ITV plc (LSE:ITV.L) to GBP 190, while keeping an Overweight rating on the shares. In 2020, ITV plc (LSE:ITV.L) reported revenue of £2.78 billion, down 16% from the prior-year quarter.
ITV plc (LSE:ITV.L) is one of the largest media companies in the UK as it holds 13 of the 15 regional television licenses. The company currently pays an annual dividend of GBX 5.40 per share, yielding 4.64%. ITV plc (LSE:ITV.L) has a trailing twelve months P/E ratio of 11.47.
3. Imperial Brands PLC (LSE:IMB.L)
Number of Hedge Fund Holders: N/A
P/E Ratio: 5.28
As FDA seeks more time to announce the fate of vaping products in the UK, Imperial Brands PLC (LSE:IMB.L) recently announced that the company is well-positioned to deliver financial results in line with the expectations. A British multinational tobacco company, Imperial Brands PLC (LSE:IMB.L) ranks third on our list of the best undervalued UK stocks to buy now.
In the first half of 2021, Imperial Brands PLC (LSE:IMB.L) reported revenue of £15.57 billion, showcasing a 6.1% year-over-year growth. In the past year, the stock delivered a 16.37% return to shareholders. The company pays an annual dividend of GBX 1.38 per share, yielding 0.09%.
Jared Dinges of JPMorgan raised the firm’s price target on Imperial Brands PLC (LSE:IMB.L) to GBP 2,100 while maintaining an Overweight rating on the shares. The company has a trailing twelve months P/E ratio of 5.28.
2. Sportech PLC (LSE:SPO.L)
Number of Hedge Fund Holders: N/A
P/E Ratio: 3.28
Sportech PLC (LSE:SPO.L) ranks second on our list of the best undervalued UK stocks to buy now. A British gambling and entertainment company is mainly known for its widely used digital channels as the company’s tech solutions are used in Europe as well as North and South America. Sportech PLC (LSE:SPO.L) reported a 16% growth in its digital platform in its interim 2021 report, compared with the same period last year.
Since the beginning of the year, Sportech PLC (LSE:SPO.L) delivered a 39.3% return to shareholders, while the stock gained 103.3% in the past year. In the first half of 2021, the company reported revenue of £13.4 million, up from £7.8 million during the same period last year. Its service revenue accounted for £1.9 million of the gross revenue. Sportech PLC (LSE:SPO.L) has a trailing twelve months P/E ratio of 3.28.
1. Cineworld Group plc (LSE:CINE.L)
Number of Hedge Fund Holders: N/A
P/E Ratio: 3.22
Cineworld Group plc (LSE:CINE.L) is one of the largest British cinema companies that has nearly 9,500 screens in over 800 locations. The company derives 68% of its revenue from the U.S., while the UK and Ireland account for 18% of the gross revenue. It tops our list of the best undervalued UK stocks to buy now.
This July, Berenberg raised its price target on Cineworld Group plc (LSE:CINE.L) to GBX 85, while maintaining an Equal Weight rating on the shares. The company announced its interim results 2021 on August 12. Cineworld Group plc (LSE:CINE.L) generated revenue of $293 million, while it opened over 10 new sites during 2020 across the U.S., Europe, and the UK.
In the past year, Cineworld Group plc (LSE:CINE.L) delivered a 136.7% return to shareholders, after hitting its all-time low of GBX 44.2 in March 2020. The stock is currently traded at GBX 63.92.
You can also take a look at 10 Best Undervalued Stocks to Buy Now and 10 Best Undervalued Dividend Stocks to Buy Now
