Small-caps predicted to soar in 2021! 2 cheap UK shares I’d buy for the new bull market

first_img See all posts by Royston Wild Royston Wild | Friday, 11th December, 2020 I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Small-caps predicted to soar in 2021! 2 cheap UK shares I’d buy for the new bull market UK share prices have rallied since early November there are still plenty of top stocks trading too cheaply today, I feel. It’s a drum we beat regularly here at The Motley Fool. And it’s a theory that many City brokers are expressing as we move into 2021 too.The outlook for the UK economy might be grim due to a mix of a long Covid-19 hangover and an uncertain Brexit solution. But the prospect of a global economic rebound following solid coronavirus vaccine news is compelling for UK share investors. We could be at the start of a new bull market. And I’m still buying for my Stocks and Shares ISA to capitalise on any stock market rebound.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Small-caps tipped to continue outperformingA recent survey from MBH Corporation suggests that small-cap UK shares, as well as US and German small-caps, are particularly good investments right now.The investment specialists say that 80% of professional investors “think small and micro-caps are a good investment opportunity in the current market”. And of the 117 investors it surveyed, a whopping 76% reckon that investors in UK shares should increase their exposure to smaller-cap stocks during the next six to 12 months.MBH Corporation says that small and micro-cap share indices have been outperforming mid and large cap indices in 2020. Some 71% of those who were surveyed reckon they will continue to perform better than bigger UK shares during the next six months as well.2 cheap UK shares on my ISA shopping listThere are many small-cap stocks on my own Stocks and Shares ISA watchlist today. A large number of these in fact look too cheap to miss at current prices, I think. Let me talk you through two of these cheap UK shares that I’m thinking of buying.#1: DevroI’d happily invest in sausage casings maker Devro for 2021 and hold it for years to come. Demand for its sausage casings continues to grow and margins keep on rising too. I reckon this particular UK share could experience rocketing earnings growth this decade as sales to emerging markets take off. Devro’s price-to-earnings (P/E) ratio of 9 times for next year provides exceptional value for stock pickers like me. And it carries a mighty 6% dividend yield as well.#2: ForterraBrickmaker Forterra is another cut-price corker on my ISA watchlist. Housebuilding in the UK took a whack in 2020 as Covid-19 lockdowns caused workers to down tools. However, construction rates will improve sharply from next year, supercharging demand for Forterra’s products. And building levels will remain strong throughout this new decade as new homes demand rockets (the UK government plans to create 300,000 new homes each year). This particular share trades on a price-to-earnings growth (PEG) rating of 0.1 for 2021. It boasts a handy 2.5% dividend yield as well. As a result, I think it’s worthy of serious attention at current prices. Our 6 ‘Best Buys Now’ Shares Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool.center_img “This Stock Could Be Like Buying Amazon in 1997” Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Simply click below to discover how you can take advantage of this. Enter Your Email Address Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Devro. 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. Image source: Getty Images last_img read more

Read More »