With 5 April’s Stocks and Shares ISA deadline approaching, I’m building a list of the best cheap UK shares to buy.
I don’t need to actually purchase any shares, trusts or funds before next month’s cut-off point. I merely need to park money in my ISA to make use of this tax year’s £20,000 contribution limit.
But with so many bargain stocks out there, I think waiting to strike could be a mistake. Here are three great shares from the FTSE 100 I think could be great buys for me to consider before they have a chance to re-rate.
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1. Standard Chartered
Standard Chartered‘s (LSE:STAN) share price has rocketed over the past six months. Yet at current prices, the bank still looks to me like a brilliant bargain.
At £12.42 per share, it trades on a forward price-to-earnings (P/E) ratio of 8.4 times. This is lower than the corresponding readings of UK-centred FTSE 100 operators Lloyds and NatWest, and fails to reflect (in my opinion) the superior earnings potential that its focus on Asia and Africa provides.
StanChart’s price-to-earnings growth (PEG) ratio of 0.8 meanwhile, is below the widely regarded value watermark of 1.
Economic turbulence in its key Chinese market poses some near-term danger. But I find the bank’s ongoing resilience hugely encouraging (pre-tax profit rose 18% year on year in 2024, to $6bn).
2. Aviva
Aviva (LSE:AV.) meanwhile, offers excellent value based on predicted earnings as well as dividends. It’s why the Footsie company’s a key plank in my own UK shares portfolio.
For 2025, it trades on a PEG ratio of just 0.1. At 541.8p per share, the company also carries a tasty 6.9% dividend yield.
As with Standard Chartered, Aviva’s share price has also enjoyed significant strength in recent months. More specifically, the financial services giant has surged on the back of February’s forecast-topping trading statement for 2024.
Strength across its British, Irish and Canadian divisions pushed operating profit 20% higher, to £1.8bn. With its Solvency II capital ratio at a healthy 203%, the business hiked the annual dividend 7% year on year.
Market competition is severe and poses a constant threat to revenues. But I’m optimistic Aviva will deliver impressive long-term growth as demographic changes drive demand for its retirement and wealth products.
3. WPP
WPP (LSE:WPP) carries much higher risk, in my opinion, than Aviva and StanChart. But at current prices of 610.20p I still feel it deserves serious attention.
The communications agency trades on a forward P/E ratio of 6.9 times, while its corresponding PEG ratio’s just 0.1 times.
Finally, the dividend yield for 2025 is a mighty 6.5%.
This impressive value reflects WPP’s share price collapse following February’s full-year financials. Weakness across North America, the UK and China meant like-for-like sales net revenues dropped 1% in 2024, to £11.4bn. It predicted corresponding sales would fall between 0% and 2% this year too.
The FTSE firm’s under pressure as the tough economic environment causes advertisers to scale back spending. But I think the long-term outlook for WPP remains robust, with its impressive scale and rising investment in digital marketing potentially putting it in the box seat for an eventual market upturn.
I think it’s worth serious consideration following recent price weakness.
