I’m searching for the best penny stocks to buy for my investment portfolio. Here are four cheap UK shares I’d buy without delay.
Medical marvel
I think BATM Advanced Communications is in great shape as a long fight against Covid-19 could be on the cards. Demand for its medical testing kits is soaring as slowing vaccination numbers and virus variants cause global infection rates to tick higher again.
Revenues at the penny stock’s Bio-Medical Division soared more than 10% year-on-year between January and June. The unit now accounts for over three-quarters of group sales versus 64.6% in mid-2020.
Competition in the medical diagnostics market is intense. And BATM will have to paddle extremely hard to keep sales rising at a brisk pace. But I’m encouraged by its successes so far and would happily buy this stock today.
Property powerhouse
Assura is another healthcare-focussed penny stock I’m thinking of snapping up. This business develops, acquires and lets out primary healthcare facilities across UK. It’s also set to benefit from NHS policy which aims to divert people away from hospitals and onto external medical sites.
The long-term outlook for Assura looks quite robust as demand for such facilities should grow strongly in line with the country’s rapidly-ageing population.
Statista thinks there will be around 22.5m Britons over the age of 65 by 2050. That compares with around 16.4m last year.
I think the main risk to Assura shareholders comes through the company’s commitment to growth through acquisitions. This leaves it in danger of overpaying for an asset and performance falling short of prior expectations.
A penny stock for value lovers
The trend of people demanding more bang for their buck isn’t going to go away any time soon. The rapid expansion of grocers Aldi and Lidl, and more general retailers like The Range and B&M, illustrates the massive growth potential that this channel still offers.
And it’s why I’d buy book, board game, stationery and craft products retailer TheWorks.co.uk. Latest financials for the value retailer showed like-for-like sales (on a two-year basis) rose 13% during the 11 weeks ended 18 July.
It’s true that takings at the firm could suffer if broader consumer spending levels weaken. However, TheWorks’ focus on the low-cost end of the market could help lessen the blow.
Turkish delight
As a UK share investor, I’ve also made a point of getting exposure to emerging markets and regions where rapid population growth and increasing wealth levels offer excellent profits opportunities.
One penny stock I’d buy to ride this theme is DP Eurasia, the sole franchisee of the Domino’s Pizza fast-food brand in Turkey, Russia, Georgia, and Azerbaijan.
Group sales at the company soared almost 60% in the first half of 2021. And DP Eurasia is embarking on rapid expansion to make the most of the exploding food delivery market.
The experts at Statista think the Turkish market for example will grow 75% between now and 2025 to around $1.9bn. I think this is a top buy, despite the threat posed by fast-growing regional operators like Getir.