Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

High yields, growing profits

First, City of London Investment Group (LSE:CLIG) has seen its share price fall 18.8% in the past year. It’s down 10.5% in the last three months. At the time of writing, the shares are trading at 420p.

Currently, the company has a dividend yield of 7.6%. Last year the global asset management firm paid a dividend of 33p per share. 

Using half of my allowance I could buy 2,380 shares. Multiply this by the dividend payment and I could be looking at a potential annual income of £785. 

It’s important to note, however, that dividend policies can be subject to change at some future date.

And funds under management fell to £7.6bn for the year ended June 2022. The year before, this figure stood at £8.3bn. This decline has been caused in a large part by rising interest rates and inflation.

Nevertheless, the business reported that net profit rose to £18.1m from £17m over the same period.  

Speedy earnings growth

Second, shares in Halfords (LSE:HFD) have fallen 52% in the last year and they’re up 17% in the past month. Currently, they’re trading at 170p.

For the year ended April, the motoring and cycling retailer paid a dividend of 9p. This equates to a dividend yield of 5.2%.

With my remaining £10,000, I could buy around 5,848 shares. Multiplied by the dividend per share, this results in an annual payment of £526.

Between 2018 and 2022, earnings per share (EPS) grew from 29.6p to 35.5p. By my calculations, this results in a compound annual EPS growth rate of 3.7%. While this isn’t particularly exciting, it’s consistent. 

It’s worth noting, however, that this growth is not guaranteed in the future.

There’s also the risk that the customer base continues to decline in the midst of the cost-of-living crisis. There’s a possibility that this could negatively impact future balance sheets.

On the other hand, revenue was up 6% year-on-year, to £1.37bn. This was largely due to the sale of products related to electric vehicles and e-scooters.  

Overall, my calculations suggest that I could get £1,311 per year in dividend payments by investing in these two companies. This is the equivalent of just over £100 per month. I find this attractive, and I’ll deploy this plan during the next tax year, when my £20,000 allowance resets.

Marks and Spencer: a contrarian buy?

Marks and Spencer Group (LSE: MKS) has been a turnaround stock for as long as I can remember. But there are signs of improvement. Sales during the 12 months to April were 7% higher than the year before the pandemic. Profits were nearly 30% higher.

Management has updated the M&S store network and reduced the level of discounting. Online sales have risen as the company’s internet offering has improved significantly.

However, management turnover is a potential concern for me. Chief executive Steve Rowe left earlier this year, while finance boss Eoin Tonge announced his departure last week. Pressure on consumer spending is also a risk.

In my view, the best that investors can hope for is slow, steady progress. I think that’s why M&S shares have fallen by nearly 40% so far this year.

But fortunately for new buyers, the shares now trade on a modest eight times earnings, with a forecast dividend yield of 4.6%.

M&S isn’t the first income stock I’d buy today, but I do think the shares look reasonably priced and could deliver attractive returns.

Greggs: cheap eats are still popular

Sales at bakery chain Greggs (LSE: GRG) rose by 16% in the 10 weeks to 14 May compared to the same period last year. It seems consumers still want its cheap, tasty snacks.

The Newcastle-based business said that sales in larger city centres and office locations are still lagging behind. But it added that sales in transport locations are rising fast. Greggs is confident enough to have opened 49 new shops since the start of 2022, closing only six.

However, despite its strong performance so far, management has cited rising costs as a concern. The company also expects consumer spending to come under greater pressure during the second half of the year.

I reckon that Greggs’ products are the kind of cheap treats people will continue buying. But with the shares trading on 16 times earnings and offering a yield of only 3.3%, I think the shares are probably priced high enough for now.

Halfords: is this 5% yield safe?

Cycle and motoring retailer Halfords (LSE: HFD) triggered a price slide in June when management warned of slowing cycling sales and said profits would fall this year.

According to chief executive Graham Stapleton, pre-tax profit could drop by around 20% to £65m-£75m this year. That’s a sharp reversal from the bumper performance seen over the last couple of years, when Halfords benefited from the pandemic boom in cycling and staycations.

Broker forecasts suggest a dividend of 9p per share this year. This would give a dividend yield of 5.3% and should be covered three times by earnings, giving a decent margin of safety.

The main risk I can see is that the UK will suffer a deeper recession than expected. But on balance, I think Halfords could be a decent buy at current levels.

So does that make the company a bargain I ought to add to my shopping list?

What I like about the business

In general I like the business model of specialist retailers, whether they focus on cycling gear, angling supplies or power tools. For some purchases, customers like the ability to speak to someone who can advise them on different options. Having made the purchase, they will often go back to the same retailer in future if they want accessories, or to upgrade their kit.

That is how I see the business model at Halfords both for motorists and cyclists. Indeed, I think the cycling market in particular will keep growing. The National Cycle Network covered over 12,000 miles in 2020, after more than doubling in size over just 15 years. I expect continued cycle path expansion, high fuel costs and health benefits to mean the number of cyclists keeps increasing.

Why has the Halfords share price fallen?

Given that, why has the Halfords share price been stuck in the wrong gear?

It is worth noting that what looks like a big fall in the past year simply unwinds a lot of the increase seen during the pandemic when cycling became especially popular. In fact, the Halfords share price today is within a few pence of where it began 2020.

More specifically though, the company issued a profit warning last month. Alongside its results for last year, Halfords said that profits before tax for the current 12-month period are expected to come in at £65m-£75m. Compared to £97m for last year, that is quite a big step down.

Like-for-like cycling revenues last year fell by a quarter compared to the prior 12 months. But they were still well ahead of 2020. So although 2021 may have been exceptional, I think the uplift to Halfords’ cycling business we saw in 2020 may be here to stay. Meanwhile, both the motoring retail and autocentres divisions showed strong revenue growth last year.

Health of the business

However, while profits are expected to slide significantly this year, I do wonder whether the share price fall has been overdone. Last year, profits before tax grew almost 50%. So the baseline is high.

Meanwhile, the company is clearly performing well in many ways. 2022 revenue of £1.4bn was 6% higher than the previous year, which was itself very strong. Cost inflation is a risk to profits, but I expect the company to manage inflation in the long term by pushing up prices.

Valuation

At the moment, Halfords has a market capitalisation of £375m. Even if profits this year come in at the bottom end of the company’s expectations, that means the prospective price-to-earnings ratio is in the mid-single-digits.

Net debt at the end of last year was £345m, which is higher than I would like. There is a risk that servicing debt will eat heavily into profits.

However, I reckon the shares offer good long-term value and would consider purchasing them for my portfolio.

Automotive and cycling retail giant

Halfords is an automotive and cycling goods retail business. It has over 100,000 employees at more than 750 locations throughout the UK, along with an online store. It claims that 90% of people in the UK are never more than 20 minutes away from one of its locations.

So what’s happening with the Halfords share price currently? Well, as I write, the shares are trading for 154p. At this time last year, the shares were trading for 402p, which is a 61% decline over a 12-month period.

I believe Halfords shares have declined due to the stock market correction. The correction has been caused by the tragic events in Ukraine but also by macroeconomic factors at play — but more on that later.

To buy or not to buy?

So what are the pros and cons of my buying this stock?

FOR: Halfords’ presence and profile is a big positive point for me personally. Its extensive footprint throughout the UK and online offering tell me it should still be able to perform well despite macroeconomic issues. In addition to this, Halfords has performed well in recent years. I do understand past performance is not a guarantee of the future, however. It has grown revenue and profit in the past three years in a row. Preliminary full-year results released last week for 2022 were positive too. Revenue and profit growth were among the headlines I noticed from the results.

AGAINST: Macroeconomic issues have placed pressure on performance and the Halfords share price. Rising inflation and raw materials costs, coupled with the supply chain crisis, have hampered many businesses and Halfords is no different. Rising costs mean passing this on to customers. Supply chain issues have resulted in fewer products to sell on the shelves.

FOR: I like the fact Halfords regularly completes acquisitions to boost its offering and grow its profile and performance. In the past fiscal year, 2022, it procured three new businesses. One of these was to boost its automotive centre presence to offer motorists more convenient and accessible locations to service their vehicles. It purchased Axle Group Holdings which has the National Tyres and Autocare brands under its umbrella.

AGAINST: The current cost of living crisis is a worry for me. Although automotive products and services are often essential to maintain vehicles, cycling goods could be considered a luxury item. This could result in Halfords seeing a material impact on sales and performance in this aspect of its business. Furthermore, the price rises mentioned earlier could mean consumers looking to make their cash go futher may seek alternative, online-only brands that may beat Halfords on price.

The Halfords share price looks too good to miss

I believe Halfords shares look attractive and I would happily add the shares to my holdings and hold them for the long term. I view the risks noted above as shorter-term issues.

The shares look good value for money on a price-to-earnings ratio of just four. The shares also pay a dividend which would boost my passive income stream and currently yield close to 5%. Dividends can be cancelled, however.

What are car stocks?

Car shares can be defined as those companies operating in the automotive industry in some capacity. These include manufacturers, those supplying parts or technology such as seats, tyres and batteries, auto dealer groups and parts retailers. There really is a lot of choice for the nimble private investor.

What makes this sector particularly interesting is the differing levels of competition companies face. Some firms have a commanding presence in a niche part of the car market; others are forced to battle it out to attract consumers to their products and services.

Some businesses operate exclusively online; others adopt a more hybrid approach. Some have brands that are household names; others have no direct contact with the consumer and are only known by the most committed of car aficionados.

To really get a handle on just how diverse this space is, let’s look at a selection of five car shares listed on the London Stock Exchange by descending market capitalisation.

[KevelPitch adtype=4578]

Top car stocks in the UK

Auto Trader

Online marketplace Auto Trader has arguably become the go-to destination for anyone interested in buying a vehicle in the UK. This popularity has driven many investors to take position, pushing the company into the FTSE 100.

According to Auto Trader, consumers spend 7 times more minutes on its site compared to its nearest rival and over 75% of all time spent looking at classified advertisements of vehicles for sale.

The boom seen in car sales since the Covid-19 pandemic has only served to reassert this dominance. Back in November 2021, the company announced its highest ever six-monthly revenue and profits.

• Market Cap: £5.11bn (as of 12 May 2022)
• Average Daily Volume: 2,610,444
• HQ: Manchester

Aston Martin Lagonda Global Holdings

Aston Martin doesn’t need much in the way of an introduction. Regularly featured in the James Bond movies, the firm designs and produces some of the most luxurious cars in the world including the Vantage, DB11, DBX, DBS and Valkyrie. It then exports and sells these highly coveted vehicles in 55 countries around the world.

Unfortunately, this quality hasn’t been reflected in the performance of Aston Martin shares. Since listing in October 2018, the company has lost over 90% of its value due to concerns over its finances and pandemic-related headwinds.

Whether Aston Martin can recover remains to be seen. On an optimistic note, the recruitment of former Ferrari CEO Amedeo Felisa could prove to be a masterstroke. The latter’s share price has been on a tear in recent years.

• Market Cap: £803m (as of 12 May 2022)
• Average Daily Volume: 479,699
• HQ: Warwick

Halfords

As any car owner will know, regular maintenance of one’s vehicle is essential. This is where Halfords comes in.

From fluffy dice to child seats to engine oil, the company sells every conceivable product a driver might need for keeping their car in top condition and passengers safe.

In addition to this, the mid-cap also runs a huge estate of Autocentres, delivering services that every owner needs to factor into their running costs every year.

Halfords recently reported that this part of the business had grown like-for-like revenues by a little over 33% in the three months to the end of 2021. Following some recent acquisitions, it now expects to carry out 7.5 million motoring services jobs a year.

• Market Cap: £497m (as of 12 May 2022)
• Average Daily Volume: 636,969
• HQ: Redditch

Seeing Machines

The vast majority of UK investors are unlikely to know about Australia-based minnow Seeing Machines. However, this could be set to change as it rapidly becomes the biggest player in software and systems designed to monitor driver distraction and fatigue and, in doing so, reduce accidents on the road.

Although only currently available on the premium models, this tech is likely to become standard over time in accordance with legislation. Seeing Machines also makes money from having its Guardian tech fitted retrospectively to fleets.

But Seeing’s eye-tracking tech isn’t just limited to cars and trucks. The company also has its fingers in multiple pies including aviation and rail. This could further turbocharge growth in the years ahead.

• Market Cap: £276m (as of 12 May 2022)
• Average Daily Volume: 5,038,603
• HQ: Canberra, Australia

Lookers

Lookers is yet another way for UK investors to tap into car stocks. It is one of the largest automotive retailers around, selling 173,000 new and used vehicles in 2021 from 144 franchise dealerships. The small-cap also boasts an aftersales division, offering parts, servicing, MOT and accident repair.

Like some of the other stocks mentioned here, Lookers saw its share price soar since the pandemic as supply chain shortages held back production and increased demand for those cars already in existence. Revenue breached the £4bn mark and pre-tax profit hit £90m.

• Market Cap: £m (as of 12 May 2022)
• Average Daily Volume: 1,002,378
• HQ: Altrincham

Are car shares right for you?

The five car stocks mentioned above go some way to demonstrating the variety of opportunities available to UK investors in this space. This is not to say that they are necessarily right for everyone.

Depending on the time period used, there have certainly been some winners. Those investing in Auto Trader between March 2020 and the end of 2021 will have doubled their money. The share price of Seeing Machines also climbed from under 2p to 12p from March 2020 to August 2021. In sharp contrast, anyone holding Aston Martin will probably be nursing significant losses on paper.

One also needs to remember that demand for vehicles can depend on a huge range of factors that are beyond the control of these businesses. Tricky economic times can force people to postpone a new purchase, especially if there is nothing wrong with their existing vehicle. High fuel prices can also impact demand.

On a more positive note, some UK car stocks generate income for those holding them, which may help to take the sting out of any temporary fall in a company’s value. Naturally, these can never be guaranteed.

In summary, car shares certainly have the potential to generate great returns for those who are willing to take more risk with their cash. The gradual switch away from internal combustion engines to more environmentally friendly solutions, combined with lowering production costs and rising levels of affluence, could see even more investors pile into the space over the next few years.

However, the potential for significant volatility can’t be overstated. As such, a portfolio that also has exposure to other sectors makes Foolish sense.

[KevelPitch adtype=151]

A rebounding LSE share

The first company, Halfords, is a retailer and specialist in automotive, motorbike, and cycling products. It currently trades at 257p, down 37% in the past year. For the years ended April, between 2017 and 2021, results have been mixed. 

While revenue increased from £1.1bn to £1.3bn, profit before tax declined from £71.4m to £64.5m. This may be partially due to the impact of the pandemic on profit margins. 

For 2020, the company reported a profit before tax of just £19.4m. It is encouraging to see such a quick rebound in more recent financial results.

On the flip side, earnings-per-share (EPS) rose from 30.3p to 41.7p. By my calculations, this means that the firm has a compound annual EPS growth rate of 6.6%. This is both strong and consistent. 

It should be noted, however, that past performance is not necessarily indicative of future performance.

The business also lifted profit expectations for full-year results in April 2022 due to accelerating growth in the automotive and motorbikes segments. However, it has also warned about the potential impact of ongoing supply chain issues.

A pandemic recovery stock

The second company I’m thinking of buying for long-term growth is Restaurant Group. It owns well-known food outlets in the UK, like Wagamama and Frankie & Benny’s. The firm endured a torrid time during Covid-19, swinging to a £133m loss in 2020. 

Although the business still recorded an £8m loss for 2021, this was a vast improvement in a relatively short period of time. 

What’s more, just about all domestic restrictions have been removed in the UK, paving the way for more consistent footfall in restaurants. It is worth noting, however, that any future variant could halt progress. 

This more positive operating environment has been reflected in net debt levels. This figure stood at £340m in 2020. By 2021, this had nearly halved to just £171m.

Investment bank Berenberg increased its target price from 110p to 125p because of Restaurant Group’s scope to grow earnings. It currently trades at 65.85p, down 46% in the past year.

Overall, these two businesses have rebounded well after the pandemic. On a stronger financial footing, future operational environments look to be much more stable. I will be buying shares in both businesses soon and holding them for long-term growth. 

Should I still be looking for cheap stocks to buy for my portfolio?

As a long-term investor, the prospect of further market volatility hasn’t derailed my investment plans. History shows us that stock markets are, over a period of a decade or more, a great way to build wealth. The average yearly return for long-term share investors clocks in at around 8%.

This is why I’m continuing to search for cheap stocks to buy today. I may even be able to pick up a bargain or two following recent market volatility. Here are two ultra-cheap stocks I’m considering snapping up.

Riding the green revolution

Sales of bicycles soared during Covid-19 lockdowns and Halfords Group (LSE: HFD) has been a huge beneficiary. Demand for its two-wheeled products has since cooled however, and latest financials showed cycling revenues down 23.8% year-on-year in the three months to December. Much further pressure could be coming too as consumer confidence comes under pressure.

Those sales numbers are no surprise though, given the electrifying demand for its product in the prior year. In fact, as a long-term investor, Halfords still has plenty of appeal for me. I expect sales of its bikes to steadily rise this decade as people switch away from their cars and head for the great outdoors.

The desire to lead healthier lifestyles continues to rise across society in this post-pandemic age. People are also looking for more environmentally-friendly ways to travel as the climate crisis worsens. What’s more, spending on cycling infrastructure is steadily increasing too in a bid to encourage people to take up cycling.

A cheap stock to buy today

Just yesterday, Brompton announced ambitious expansion plans that illustrate the robust outlook for bike sales over the next decade, at least. The folding bike specialist said its new factory it intends to open in 2027 will manufacture 200,000 cycles each year. It currently sells around 70,000 of its products per annum.

Now Halfords is expected to see some turbulence in the near term as supply chain issues bite and sales slow from recent levels. City analysts think earnings at the firm will slip 20% in this outgoing financial year ending March 2022. But they think profits will stabilise in fiscal 2023 before rising 8% the following year.

Based on these predictions, I think Halfords is a terrific cheap stock to buy. At current prices of 277p per share, the retailer trades on a forward price-to-earnings (P/E) ratio of 8 times. I think this rating, below the bargain benchmark of 10 times, fails to reflect Halfords’ solid long-term profits outlook. I’d buy it today with the aim of holding it for years to come.

Leading retailer

The Halfords (LSE: HFD) share price has had a decent start to the new year. It’s up around 3% as I write. Over one year, the stock is up near 19%. But I think the shares can continue to rise through 2022.

Halfords is a recognisable brand as it’s a leading automotive and cycling retailer throughout the UK. It also offers servicing and repair in its auto centres. The company announced a shift in strategy in 2018, which was to evolve into a services-focused business. Progress towards this has been encouraging, with the Group Services division now representing 33% of total revenue.

Within the services offering, Halfords has been expanding its electric vehicle capabilities. For example, the company has already trained 1,300 electric technicians. This is on track to reach 2,000 by the end of fiscal year 2022 (the 12 weeks to 31 March 2022). This should provide excellent growth potential in the years ahead. As it stands, revenue generated from servicing electric cars grew 120% year-on-year in the recent interim results.

The stock is very cheap in my view. On a price-to-earnings (P/E) basis, the shares are valued on a multiple of 11. I think this represents very good value relative to the potential for growth in the years ahead.

There are risks to consider before I buy the shares. For one, Halfords has been impacted by the supply chain disruption of late. I’d also consider the potential for competitors in the electric vehicle services market, too. Nevertheless, I’d buy Halfords shares today.

Another good prospect

The next company is finnCap (LSE: FCAP), a financial services company specialising in corporate finance, and mergers and acquisitions (M&A). It’s much smaller than Halfords, with only a £60m market cap as I write today. The share price has rocketed 53% over one year though, as the M&A and initial public offering (IPO) markets have been extremely active.

The recent interim results showed revenue increasing by 55%, which was a record performance for the company. The deal pipeline for IPOs and M&A transactions was said to be remaining strong too.

This is all great. But if I buy the shares today, I’d be earning a cut of future profits. So, the bigger question is, can the record performance continue?

I think the prospects look good. According to a survey conducted by Ansarada, M&A deals in the UK are expected to rise in 2022. The IPO market has also recently been given a boost by the Financial Conduct Authority, the UK’s financial regulator. The rule changes should encourage businesses to list in the UK at an earlier stage. This is a prime target market for finnCap, and should boost future IPO activity.

The shares are only trading on a forward P/E ratio of 8 as I write today. I view this as a dirt-cheap valuation for the potential growth ahead.

The biggest risk for finnCap as I see it is a stock market crash, possibly due to a new strain of Covid. This is highly likely to reduce corporate financing activity. But on balance, I would buy finnCap shares today.

Riding the cycling revolution

The last couple of years have been bittersweet for car parts and bicycle retailer Halfords Group (LSE: HFD). Sales of its bikes rocketed as Covid-19 gym lockdowns prompted people to find other ways to get fit. However, severe supply chain problems meant the business hasn’t been able to capitalise on this trend to its fullest. This is an obstacle that looks set to continue too.

As a long-term investor, I’m tempted to buy Halfords shares. Britain has fallen back in love with cycling and rising investment in cycle infrastructure should continue supporting strong demand for the retailer’s products. Rising environmental awareness should also help sales as more people are expected to hop on their bikes and leave the car at home. Today, this UK share trades on a forward price-to-earnings (P/E) ratio of 10.4 times.

Lok’N load

The self-storage market in the UK is booming. It’s why analysts think earnings at Lok’N Store Group (LSE: LOK) will rocket 188% in this financial year (to June 2022). Demand for space is rising for a number of factors, such as large numbers of people moving house and embarking on home renovations. The growth of e-commerce is fuelling occupancy rates too, as well as supply chain issues encouraging retailers to boost their stock levels.

Based on current earnings forecasts Lok’N Store trades on a forward price-to-earnings growth (PEG) ratio of 0.2. This is comfortably below the benchmark of 1 that suggests a stock could be undervalued. I’d buy the business at these levels even though demand for its storage units could suffer if consumer spending power slips in 2022.

Head to the Kape!

I’d also buy Kape Technologies (LSE: KAPE) to try and make a stack of cash as the cybercrime problems grow. This UK share creates products that keep users’ data secure and private such as VPN software and antivirus programmes. This is a highly competitive environment and success is by no means guaranteed. However, I’m impressed by the breakneck progress Kape’s making in an industry dominated by big hitters like Avast and McAfee.

In its latest financial update, Kape said it expects full-year revenues for 2021 to hit “the upper end” of a forecasted range of $197m-$202m. By comparison, the tech titan punched sales of $122.2m in 2020 and $66.1m the year before that.

Kape’s progress is probably no surprise given the rate at which the cybersecurity market is growing. Researchers at Mordor Intelligence think the industry will be worth $352.5bn by 2026. That compares with the $156.2bn it was valued at last year. I don’t think Kape Technologies’ low PEG ratio of 0.2 reflects its exceptional growth opportunities this decade.

FTSE retail giant

Halfords is the UK’s leading retailer of cycling products as well as automotive products and services. It employs over 10,000 people and has more than 750 locations throughout the country. Halfords claims that 90% of the UK is never more than 20 minutes away from a Halfords shop or one of its auto centres.

As I write, Halfords shares are trading for 352p. A year ago, the shares were trading for 260p which is a 35% return over a 12-month period. In recent weeks, positive interim results and the acquisition deal  have boosted the shares. In December to date, Halfords shares are up 10%.

Acquisition and positive performance

On 1 December, Halfords announced it signed a sale and purchase agreement to purchase Axle Group Holdings Ltd for £62m. Axle owns the National Tyres and Autocare, Viking Wholesale Tyres, and Tyre Shopper brands.

This acquisition is a great move in my opinion. Halfords already has its own auto centres where it offers MOTs and services for motorists. Upon completion, Halfords will have approximately 604 garages, 234 consumer vans, and 190 commercial vans. This number will mean it has comfortably surpassed its target of 550 garages. Halfords places a great emphasis on motoring revenue and the National Tyres and Auto Care centres will help grow its motoring revenue stream. 

In November, Halfords also reported positive interim results for FY 2022. It confirmed that revenue, profit, sales growth, and cash generation had increased compared to 2021 levels. Many FTSE stocks in the retail sector have suffered due to supply chain issues. Halfords pointed towards the same problems but was able to leverage its competitive advantage and huge profile to record excellent results.

Risks of investing

Buying Halfords shares does come with risks, however. As mentioned, the current supply chain crisis has meant many businesses are unable to fulfil the demand for some of their products. Halfords has faced this issue in its burgeoning cycling department. If these issues persist, performance could be affected. Rising inflation and costs are a worry too. If these costs are passed on to customers, Halfords could lose customers and market share. This could affect performance and investor returns as well.

Overall, I believe this recent acquisition and the recent positive results will boost Halfords growth trajectory upwards. In addition, Halfords has a good track record of performance which fills me with confidence too. I understand past performance is not a guarantee of the future but I use it as a gauge when reviewing assessment viability. Halfords currently sports a price-to-earnings ratio of just 12, which I consider cheap. At current levels I would happily add Halfords shares to my portfolio.