2 dirt cheap UK stocks I’m considering for my ISA in June!
I’ve been searching the UK stock market for the best bargain stocks to buy in the coming days. Here are two that have grabbed my attention.
QinetiQ
Rising global tensions have driven defence shares through the roof since 2022. But companies that sell product into the US are facing uncertainty as Washington plans for a reduced role in assuring global stability.
This includes QinetiQ (LSE:QQ.), whose share price plummeted in March after it warned of “challenging US market conditions”. It reported contract delays from North American customers, and subsequent plans to restructure its Stateside operations at a whopping cost of £140m.
Looking ahead though, I’m confident that opportunities elsewhere could offset any US-related weakness. Not that prolonged sales pressure is certain considering the dangerous geopolitical climate, mind. The FTSE 250 firm makes more than three-quarters of total revenues from other countries such as the UK, Germany, Australia and Canada.
Besides, I think the threat of falling US defence spending is more than baked into the cheapness of QinetiQ’s shares. It now trades on a forward price-to-earnings (P/E) ratio of 13.9 times. Compare that with other UK blue-chip defence shares like BAE Systems (24.2 times) and Chemring (22.3 times).
On top of this, the company’s corresponding price-to-earnings growth (PEG) ratio is 0.6. Any reading below 1 suggests a share is undervalued.
City analysts expect QinetiQ’s earnings to soar 21% this financial year. Given its expertise across multiple technologies — it provides support across land, sea, air, space and even online — I think it could be a great stock to capitalise on rising Western defence budgets.
Allianz Technology Trust
Investing in tech-related assets is riskier than usual right now as economic uncertainties persist. A deep global downturn could wipe billions off earnings across the sector. On top of this, the threat of cost and supply chain issues loom as questions over worldwide trade arrangements linger.
These could all continue to weigh on the performance of Allianz Technology Trust (LSE:ATT), whose shares have fallen sharply in 2025. Yet on the other hand, I think the value of this pooled investment vehicle is hard to ignore. Right now, the investment trust’s shares trade at a near-10% discount to its net asset value (NAV) per share.
As a long-term investor, I think now could be a great time to pile into this Allianz product. Given its high exposure to multiple growth segments like artificial intellgence (AI), robotics, quantum computing and augmented reality, I think it could be a great way to capitalise on the booming digital economy.
Trusts like this allow investors to capitalise on growth opportunities in a way that also mitigates risk. This particular one holds shares in 50 tech shares including Apple, Nvidia Microsoft and Alphabet. And its top-10 holdings constitute around 54% of the total portfolio, meaning it’s not reliant on a small number of shares to generate growth
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More reading
- With a new £1.54bn deal and 78% forecast annual earnings growth, is it time for investors to consider this FTSE 250 defence star?
- 3 cheap FTSE 250 stocks to consider buying right now
- Down 23% but with forecast annual earnings growth of 30%+ and new contracts just signed, should investors consider buying this FTSE 250 defence gem?
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Alphabet, Apple, BAE Systems, Chemring Group Plc, Microsoft, Nvidia, and QinetiQ Group 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.
