2 of the finest value stocks to consider buying in May

Here are two of the best value stocks available for investors to consider buying this month, according to this Fool. Here he explains why.

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I think there are plenty of opportunities in the stock market to capitalise on at the moment. As such, I’m on the lookout for the best-quality value stocks to buy in the coming weeks.

Here are two for savvy investors to seriously consider.

ITV

There’s no hiding it, ITV’s share price performance has been terrible in the last five years. During that time, it has lost 39.7% of its value.

Should you invest £1,000 in easyJet right now?

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Created with Highcharts 11.4.3ITV PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

But now trading on just nine times earnings in 2025 and 7.5 in 2026, I think the stock could be one of the best bargains on the FTSE 250.

Granted, in the months to come it’ll continue to face challenges. The traditional advertising market has taken a hit in recent years as red-hot inflation has seen customers cut back on spending.

However, with its shift to digital, I think the future of the business looks promising. It has shown solid signs of growth as it continues to build out its streaming services and ITV Studios business.

Last year, digital revenues rose 19% to £490m. There have been other positive signs too, such as a 20% rise in monthly active viewers using its ITV Hub platform. In its latest update, ITV stated that it remains on track to reach its 2026 target of £750m in digital revenues.

While its shares look dirt cheap, I’m also a massive fan of its 7% dividend yield, which is far above the Footsie average. As well as its bulky yield, management recently announced a £235m share buyback scheme. That’s passive income that can tide me over while I sit and wait for its share price to hopefully recover.

Safestore

I also like the look of Safestore. Like ITV, the stock has struggled in recent times. In the last 12 months, it’s down 15.1%. That said, it now looks like great value for money, trading on just 8.7 times earnings.

Created with Highcharts 11.4.3Safestore Plc PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

It also offers a 4% yield. While that’s far from the highest available to investors, it sits above the FTSE 250 average of 3.4%. Furthermore, Safestore has continuously hiked its dividend payment for the last 14 years, which is a solid track record. During that time, its payout has risen at an annualised rate of 18%.

The business comfortably dominates the UK market with over 133 locations. As such, it now has plans for global expansion. It’s targeting Europe first, where last year it expanded into markets such as Germany and Spain.

During the year, it added 500,000 sq ft of lettable areas while further growing its development pipeline to a further 1.5m sq ft across 30 projects.

Its biggest threat is interest rates. They lead to higher rents, which may see some customers give up their rental space. They also detrimentally impact property valuations.

However, as rates fall the stock should be provided with a boost. As a shareholder, I’m also excited about what management has planned in the years to come as the business continues to enter new markets. At its current price, I see real long-term value.

But here’s another bargain investment that looks absurdly dirt-cheap:

Like buying £1 for 31p

This seems ridiculous, but we almost never see shares looking this cheap. Yet this Share Advisor pick has a price/book ratio of 0.31. In plain English, this means that investors effectively get in on a business that holds £1 of assets for every 31p they invest!

Of course, this is the stock market where money is always at risk — these valuations can change and there are no guarantees. But some risks are a LOT more interesting than others, and at The Motley Fool we believe this company is amongst them.

What’s more, it currently boasts a stellar dividend yield of around 10%, and right now it’s possible for investors to jump aboard at near-historic lows. Want to get the name for yourself?

See the full investment case

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Charlie Keough has positions in ITV and Safestore Plc. The Motley Fool UK has recommended ITV and Safestore Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

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