I believe these UK shares could be two of the best cheap stocks to buy today. Allow me to explain why.
A cyber security star
Tech stocks that help companies, governments and other organisations protect themselves against cybercrime look set to thrive this decade. The growth of homeworking and the e-commerce boom due to Covid-19 has supercharged the number of cyber attacks over the past couple of years.
The tense geopolitical landscape threatens to worsen the situation further with state-sponsored cyber attacks becoming the norm.
Comments from the National Cyber Security Centre (NCSC) illustrate the scale of the problem. The centre has just urged UK organisations âto bolster their cyber security resilience in response to the malicious cyber incidents in and around Ukraineâ.
The NCSC says that recent cyber attacks in Ukraine âare similar to a pattern of Russian behaviour seen before in previous situations,â prompting this fresh warning.
As both large- and small-scale cyber attacks become commonplace, increased investment is required in software to repel intrusions. This is why Iâm considering investing in NCC Group (LSE: NCC).
This UK share provides a wide range of services that help thwart cyber criminals. From carrying out security assessments and providing training to producing software escrow agreements, NCC has its fingers in a number of pies.
City analysts think NCCâs earnings will rise 25% in the financial year to May. This leaves the company trading on a forward price-to-earnings growth (PEG) ratio of 0.7. A reading below 1 suggests that stock could be undervalued.
Sure, NCC could suffer untold reputational damage if a failure of its security systems occurs. Given the nature of its business such an event could prove catastrophic for future sales. However, NCC has been around for three decades and so clearly has a great track record on this front. This gives me extra confidence as a potential investor.
A cheap stock for the shipping boom
Iâm also considering buying shares in Braemar Shipping Services (LSE: BMS) today. The worldâs shortage of vessels is sending charter rates through the roof and shipbroking firms like this are reaping the rewards. Braemar also provides financial and logistics services to the global shipping industry.
Shipping rates are ballooning because of a tightening supply of vessels. The Covid-19 economic rebound is supercharging demand for ships of all classes. At the same time, a shortage of orders for new vessels in recent years has left a paucity of available seaborne craft.
Some analysts are predicting that âthe average cost of shipping this year will be higher than ever beforeâ as the crunch goes on. Braemar plans to double the size of its shipbroking business to exploit these favourable conditions.
City brokers are expecting earnings at Braemar to shoot 22% higher in this financial year (to February). This leaves the shipping giant trading on a forward PEG ratio of 0.5.
Earnings at the business could suffer if the economic recovery runs out of steam. But from a long-term perspective, I think this cheap stock remains a top buy.