2 ultra cheap stocks to buy now!

Today I am looking for the best cheap stocks to buy for my portfolio. Here are two that I think could help me get some great feedback. Both look set to deliver rapid earnings growth for at least the next two years.

A leading countercyclical stock to buy today

I believe Begbies Traynor Group (LSE: BEG) stocks look too cheap for me to miss. The insolvency and administration practitioner is trading on a price-to-earnings growth (PEG) ratio of 0.5 for this fiscal year (through April). It’s comfortably inside the benchmark of 1 and below, suggesting a stock is undervalued.

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Begbies Traynor’s earnings have been growing in double digits every year for about half a decade now. This is largely due to acquisitions that have boosted the profits it has made of late.

With the UK economy slowing and soaring inflation putting increasing pressure on businesses, I expect earnings to also continue to grow strongly as demand for its services is bound to increase. . That’s a view shared by City analysts who estimate annual profits will rise 23% and 10% respectively this year and next.

Insolvency cases in Britain are rising sharply as Covid-19 furlough schemes have been withdrawn. The numbers are expected to rise sharply in the spring and beyond as well, as inflationary pressures worsen and the last government financial support programs are phased out this month.

However, Begbies Traynor’s earnings could suffer significantly when economic conditions improve. But at current prices, I think it’s still a cheap UK stock to buy.

A very cheap stock for the digital revolution

Kape Technologies (LSE: KAPE) may not have the financial clout or brand recognition of US cybersecurity giants like Microsoft Where McAfee, to name just a few of its rivals. And it faces the threat of other major tech players like Google also entering the fray. But at current prices, I still think this little player might be worth the risk. Today, Kape is trading on a forward PEG ratio of 0.2.

The rapidly growing cybersecurity industry has shifted into high gear during the pandemic as work from home and e-commerce have taken off. It’s a sector that should also continue to grow rapidly, giving Kape room to generate stronger earnings growth, despite this competitive threat. City brokers believe the company’s profits will increase by 57% in 2022 and another 11% in 2023.

It is perhaps unsurprising that forecasters are so optimistic given the constant stream of news regarding cyberattacks. In the last days, Toyota was forced to close 14 of its factories following an attack on its systems. The British government has also announced measures to force internet service providers to strengthen their security in order to protect users.

Investments in internet security are set to skyrocket worldwide as cyber warfare by independent hackers and rogue states increases. And I think Kape could be a great cheap share to buy in this environment.

Royston Wild has no position in any of the stocks mentioned. The Motley Fool UK recommended Microsoft. The opinions expressed on the companies mentioned in this article are those of the author and may therefore differ from the official recommendations we give in our subscription services such as Share Advisor, Hidden Winners and Pro. At The Motley Fool, we believe that considering a wide range of information makes us better investors.

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