Investments

2 Cheap Stocks You Need To Buy By The End Of 2019

In this article I’m discussing two white-hot value shares I think investors should snap up before the end of the month.

CareTech Holdings

Healthcare play CareTech Holdings is a top stock I think you need to consider buying prior to the close of December. I’d advise, though, that possible buyers here need to pull their socks up: full-year results are scheduled for Thursday, December 12 and I reckon that this could prompt waves of fresh investor buying.

CareTech runs a network of residential care homes and other facilities in the UK for individuals with special needs, and following its gamechanging acquisition of rival Cambian Group last autumn the firm now has some terrific earnings possibilities for the new decade.

Following the acquisition, revenues and underlying pre-tax profits exploded 120% and 50% respectively during the six months to March 2019 , and signs that integration of its new asset continues to go off without a hitch with cost savings continuing to stack up could help its share price recover after recent weakness.

At current prices the AIM-listed business trades on a forward P/E ratio of 8.9 times, created by City forecasts of a 20% earnings rise in the fiscal year to March 2020. Given its brilliant long-term outlook I reckon this makes CareTech a top buy, with a chubby 3.2% forward dividend yield providing an added sweetener.

Chemring Group

I reckon Chemring Group is also a top value buy ahead of next year. Not only could the defence giant attract lots of safe-haven interest in what promises to be another tumultuous year for the global economy and geopolitical landscape, but the release of some terrific financials in recent times makes now a good time to jump on board.

The small cap, which builds countermeasure products to protect against missile attacks as well as sensor technology, announced in early November that it had continued to experience positive sales momentum and that it had ended the 12-month period to October 2019 “robustly.” As a consequence it said that adjusted operating profit for the period would beat previous expectations.

Should it repeat the trick and advise of a great start to the new fiscal period when full-year results on Monday, December 16 then expect Chemring, which has already risen by around a quarter in value in 2019, to see its share price rise again.

A low, low forward P/E ratio of 14.7 times, created by an anticipated 27% earnings rise this year, certainly provides scope for more flurries of investor buying. Lastly, an inflation-topping 2% dividend yield gives something for dividend seekers to get stuck into as well.

Show More

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button
Close
Close