Following recent stock market volatility, I have been looking for UK shares to buy today for my portfolio that look cheap compared to their growth potential.
I think there are a number of businesses on the market right now that look incredibly undervalued.
As such, I would buy all of the companies outlined below for my portfolio today as I believe they have tremendous prospects over the next decade.
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UK shares to buy today for growth and income
The first company on my list is the gold mining group Centamin.
This business has a strong balance sheet stuffed with cash and gold bullion. It also has some of the lowest production costs in the gold mining industry. This gives the enterprise a competitive advantage.
As gold prices remain elevated, I think this company can continue to generate large profits. It also supports a dividend yield of around 5%.
Some challenges the group may face going forward include higher operating costs as a result of rising fuel prices. These could hit profit margins.
As the UK economy begins to recover from the pandemic, I also want to own some financial stocks. One of the country’s best Challenger banks is OSB Group.
This enterprise specialises in buy-to-let lending and recently reported a substantial increase in lending activity. As the UK property market continues to grow, and interest rates rise, I think the company will benefit from these favourable tailwinds.
That said, higher interest rates could lead to a slowdown in the property market. This is one risk that I will be keeping an eye on as we advance.
Booming market
Another sector I would like to buy exposure to is the oil and gas industry. That is why I believe Tullow Oil is one of the best UK shares to buy now.
The company has relatively low operating costs compared to the rest of the industry, and while it might have a weak balance sheet, this should start to change as higher oil prices produce more profits for the firm.
Management is also pursuing an expansion plan. The corporation is looking to increase output and develop new production facilities over the next couple of years.
Some challenges the group could face include volatility in the commodity markets and rising costs.
Both of these headwinds could destabilise its growth over the next few years.
Recovery play
The final company on my list is the hospitality operator Marston’s. After two years of disruption, the business is now getting back on its feet.
Recent trading updates show that consumers are returning, which could translate into further growth for the group’s earnings in the year ahead.
Some challenges it could face include higher costs and supply chain disruption. Both of these challenges could hit the company’s growth.
