Here are what I think could be three of the best UK penny stocks for me to buy now.
1) Power play
Buying mining shares is always packed with danger. Exploration, development and production work can often disappoint and earnings forecasts can take a mighty whack as a result. But despite this I think Bushveld Minerals (LSE: BMN) could be one of the best growth stocks I could buy this decade.
This is because this UK penny stock (which trades at 14p per share) pulls vanadium out of the South African ground. It then uses this to make components for vanadium redox flow batteries. Demand for these energy storage devices is rocketing as they are critical in the renewable energy industry. When the wind dies down and the sun goes in they store power than would otherwise be lost. I expect Bushveld’s profits to move significantly higher as investment in green energy projects rises over the next decade.
2) One of the best-value penny stocks to buy now?
I believe Vertu Motors (LSE: VTU) could be one of the best-valued UK penny stocks for me to buy at current prices. At 45p per share this car retailer trades on a price-to-earnings (P/E) ratio of just five times for this fiscal year (to February 2022). It’s a reading I think fails to reflect the strength of trading at the business and the possibility of repeated upgrades to profit forecasts.
Vertu Motors has in recent days lifted its estimates for the full year thanks to strong performances across its new, used, and service divisions. This is no surprise to me as the automotive sector is one of the best-performing during the early stages of economic upturns. Yet I don’t think this theme is baked into this penny stock’s share price as of today, making it a top value buy. However, shortages of new car supply due to semiconductor shortages could put the retailer’s recovery at risk.
3) Turkish delight
It’s possible that you might not have heard of DP Eurasia (LSE: DPEU). I think this could be one of the best stocks I can buy to capitalise on rising wealth levels in emerging markets. This British stock — which trades at 73p per share — is the master franchisee owner of the Domino’s Pizza brand in Turkey, Russia, Azerbaijan, and Georgia.
This low-cost stock is enjoying spectacular sales growth right now as the food delivery industry grows rapidly in these regions. DP Eurasia’s system sales rocketed 58% in the first six months of 2021, driven by a 72% sales jump in its core Turkish market. The penny stock is taking steps to exploit this market opportunity by expanding rapidly. It opened more than a dozen stores in Turkey in the first half alone. Intense competition could damage future sales growth rates, though.