I’m searching for the best UK value shares to buy next month. Here are two on my radar right now.
Centamin
I’m thinking of buying UK gold shares for November. And Centamin’s (LSE: CEY) dirt-cheap share price has put it near the top of my shopping list.
The Egypt-focused metal producer trades on a forward price-to-earnings (P/E) ratio of 8.7 times just now. It also carries a healthy 5.4% dividend yield for 2022.
Centamin’s share price has rocketed more recently thanks to bubbly trading news. Revenues leapt 19% in the third quarter, to $218.1m. Meanwhile gold production soared 23% year on year to 127,512 ounces.
I think the FTSE 250 share is a great buy for the long haul. Having constant exposure to gold is a good idea to boost my wealth when times get tough. Bullion prices tend to increase during economic and political crises, pushing profits at such companies higher.
I also like Centamin due to the quality of its Sukari mine and the work it’s taking to improve productivity and cut costs. The firm advised this month that capital projects here remain on schedule.
As I mention, earnings at companies like this are sensitive to the prices of the commodities they produce. But this isn’t always a good thing. In the short-to-medium term, gold prices could fall if the US dollar continues to rise, for example. This could pull Centamin’s share price sharply lower.
Still, as someone who invests for the long term, this gold producer still looks super attractive. And there’s also a good chance that yellow metal values will increase next month as signs of a global recession steadily increase.
WH Smith
I’m also considering buying retailer WH Smith (LSE: SMWH) this November. Its share price has tanked in October and I think this presents a great dip-buying opportunity.
At current prices, the FTSE 250 firm trades on a forward price-to-earnings growth (PEG) ratio of just 0.4. A reading below 1 suggests that a stock is undervalued by the market.
WH Smith faces an uncertain outlook in 2023 as the global economy cools. It might see a sharp reduction in customer numbers at its airport and train station outlets. The newsagent might also see revenues slip as people cut back on discretionary spending.
That said, as a potential investor I find recent trading released highly encouraging. The company upgraded its full-year profits expectations over the summer. And last month it praised the continued “strong” performance of its Travel division. Revenues here rose 129% in the six months to 27 August.
WH Smith operates in 29 UK airports and 100 airports internationally. And it remains committed to expanding its Travel division to capitalise on rising passenger numbers. The International Air Transport Association (IATA) thinks the global air travel industry will “expand substantially” over the next 20 years. This provides a significant structural opportunity for the company to exploit.