Looking for cheap shares to buy in March? Here are 3 to consider

When it comes to looking for cheap shares to buy, British traders are spoilt for selection. In contrast to different markets just like the US, UK shares are buying and selling at far decrease multiples, creating the chance to snap up terrific corporations at incredible costs.

This month, three companies have caught my consideration: Rightmove (LSE:RMV), Safestore, and Greencoat UK Wind. None are with out flaws, however with every buying and selling at enticing multiples or tasty-looking dividend yields, it’s onerous not to be tempted, in my opinion.

Focused for acquisition

The underappreciated nature of British shares hasn’t gone unnoticed by personal fairness and worldwide traders. In complete, 19 FTSE 350 corporations acquired takeover bids. And Rightmove is on that checklist, together with Anglo American, Darktrace, DS Smith, Hargreaves Lansdown, Ascential, Britvic, Centamin, Currys, and Redrow, amongst others.

Some provides have been accepted, others are nonetheless being negotiated. Nevertheless, in the case of Rightmove, makes an attempt by Australian rival REA Group to take over its operations have been firmly rejected. It appears even Rightmove’s administration believes its inventory’s being considerably underappreciated by markets proper now, each by the rejection of 4 takeover bids and the continued repurchasing of its personal shares.

For reference, Rightmove shares are at the moment priced at a ahead price-to-earnings ratio of simply 23. By comparability, its closest US competitor, CoStar, is sitting at an enormous 72 occasions ahead earnings. So relative to its friends, the inventory seems to be like a discount, particularly when contemplating exercise in the housing market seems to be choosing up in 2025.

Greater than 140,000 properties throughout the UK have been listed in January, in accordance to the most recent knowledge from TwentyEA – a 7.3% improve 12 months on 12 months. And subsequently, Rightmove has already reported an uptick in listings on its platform for the primary two months of 2025, as have various web sites like Zoopla.

In different phrases, Rightmove’s development may be set to speed up regardless of what the comparatively cheap valuation implies. That’s why I’m taking a more in-depth have a look at the enterprise as a possible candidate for my prime shares to buy checklist this month.

What may go mistaken?

Rightmove seems to have promising prospects. However that doesn’t make it a assured winner. One of many massive the explanation why CoStar’s buying and selling at a a lot loftier valuation is as a result of it has introduced plans to problem Rightmove’s industry-leading standing in the UK. And it appears traders are baking the success of the technique into the share worth.

CoStar just lately acquired rival platform OnTheMarket with the intent of stealing market share with decrease costs and undercutting Rightmove’s pricing energy. Contemplating CoStar has a market-cap of $33.5bn (£25.6bn) versus Rightmove’s £5.4bn, this menace is one that almost all traders aren’t ignoring.

However this isn’t the primary time a enterprise has tried to dethrone Rightmove. And for over a decade, the group has defended and expanded its place whereas rivals crumbled. Looking once more on the valuation, it appears that evidently traders are underestimating Rightmove’s defensive capabilities – a mistake that’s confirmed expensive in the previous.

Personally, given the agency’s spectacular observe file, I stay bullish. This isn’t simply for Rightmove, however for Safestore and Greencoat as properly. Every agency’s coping with its personal challenges. But it appears the market’s underestimating their value-building capabilities, doubtlessly making a profitable shopping for alternative for long-term shareholders.

That’s why I believe these are investing alternatives worthy of consideration.