My 2 favourite low-P/E shares with big earnings potential

first_img 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. It’s easy enough to find undervalued shares for your Self-Invested Personal Pension or Stocks and Shares ISA. The more difficult part is picking those companies with real growth potential.Even the best easy-access Cash ISA offers just 1.4% interest on your capital. That’s barely enough to cover the cost of inflation. Instead, I would choose shares that trade on a low price-to-earnings (P/E) multiple. That gives me the best chance to grow my wealth over time.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…On a missionIt’s ironic that marketing and advertising specialist The Mission Group (LSE:TMG) doesn’t attract many headlines. Investors just don’t seem that smitten. But dig a little deeper and you might be surprised. A P/E ratio of just 10.5 looks very cheap, given that TMG has turned in decent profits on appreciating revenue for the past five years.This AIM-listed firm hasn’t yet attracted the attention of many City analysts, whose forecasts shine a spotlight on underappreciated companies across the FTSE. A market cap of just £75m could be another reason this little gem has flown under the radar.Like one of my best picks of last year, TP Group, the TMG share price has just slowly ticked upwards, adding 60% from its 60p price in February 2019 to a high of 96p in November that year. At last count the shares were trading at a 6% discount from their all time high.A January trading update for the year ended 31 December 2019 showed the group with £5.8m profits on £159.9m revenue. Chair David Morgan confirmed that TMG should be debt-free by the end of 2020, adding: “More than ever, I am convinced that our positioning as a nimble and entrepreneurial group is right for our times.” I would agree.Building growthFTSE 250 housebuilder Vistry Group (LSE:VTY) has a very tidy looking balance sheet, certainly more so than larger competitors like Persimmon.Last year, the company formerly known as Bovis Homes posted record profits with a net cash position of £362m, up from £126m. This was helped by a 3% hike in the number of completed new homes, a growing average selling price, and land acquisitions producing gross margins of 26% and 25% return on capital employed.Recent appreciation in the share price means a cracking 6% yield has dropped to more like 4.3%. But we’re not only interested in VTY for the dividends. There are plenty of high-yield FTSE 100 companies that can do that particular job for your money.The shares are now trading at a very reasonable P/E ratio of 13.8. When taking forecast earnings into account that drops to more like 10, which I say is very cheap for such a quality business.Vistry said it produced a “significant step-up” in sales across 2019, with the average sales per outlet up from 0.5 the previous year to 0.58 this time round.Full-year results for the 12 months ended 31 December 2019 are due out on 27 February and with chief executive Greg Fitzgerald highlighting a “strong” forward sales position the share price could go off like a rocket from here. “This Stock Could Be Like Buying Amazon in 1997” My 2 favourite low-P/E shares with big earnings potential Tom Rodgers | Wednesday, 12th February, 2020 | More on: TMG VTY 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. Tom Rodgers owns shares in The Mission Group. The Motley Fool UK has no position in any of the shares mentioned. 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. Simply click below to discover how you can take advantage of this.center_img Our 6 ‘Best Buys Now’ Shares Image source: Getty Images. Enter Your Email Address Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! 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. See all posts by Tom Rodgerslast_img read more

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