2 UK shares for value investors to consider buying

I think the FTSE 100 and the FTSE 250 are great places for value investors to look for shares to buy. And there are a couple I’ve been watching for a little while.

In both cases, things have suddenly become a lot more interesting than they were before. So I think both are worth a closer look. 

Vistry

One of the interesting things about profit warnings is that there never seems to be just one of them. And on Friday (8 November) Vistry (LSE:VTY) issued a second one to go with October’s. 

The stock fell 20% as the company announced that the costing errors that caused a 35% drop last month were worse than expected. The new estimate is of a £165m mistake, rather than £115. 

That’s not a good thing, but there were some very positive signs for investors. One is that the firm has conducted an independent investigation and found the issues confined to one division. 

The other is that Vistry is still sticking by its capital return policy. That means £1bn returned to shareholders through a combination of dividends and share buybacks over the medium term. 

If it can achieve this, the stock looks like incredible value. The FTSE 100 housebuilder has a market cap of £2.35bn, which means shareholders could be in line for a 42% return. 

UK housebuilders are under review from the Competiton and Markets Authority. And while I’ve thought that made them too risky, the latest drop might make Vistry too cheap for me to ignore. 

Dr. Martens

I sold my shares in Dr. Martens (LSE:DOCS) when it looked like the company was going to be taken private. But I’m seriously thinking about buying them again.

The stock has been a terrible performer since it joined the FTSE 250 in 2021. But I think a positive outlook for the US economy might mean things are about to look up for the business.

One reason – though not the only one – the business has been struggling is weak demand in the US. Revenues have fallen in the region, which has dragged down total sales. 

The change of government, though, has investors forecasting economic growth in the short term. And if that materialises, it could reverse some of the pressures on Dr. Martens. 

Obviously, the possibility of higher tariffs is a big risk that inventors shouldn’t ignore. There’s a real chance these could dampen any increase in demand for boots made in the UK. 

At a forward price-to-earnings (P/E) ratio of 20, the stock doesn’t look hugely cheap. But I think this could change quickly if US economic growth comes on strong. 

Value traps

Sometimes, a falling stock can be a value trap when the underlying business has a permanent problem. But I don’t think this is the case with either Vistry or Dr. Martens.

In both cases, I think the problems the companies are facing will turn out to be temporary. Investors might have to wait, but I expect both stocks to do well from here. 

Right now, I prefer Vistry – if the firm has its problems under control, the stock looks like outstanding value. But as someone looking for stocks to buy, I’m considering both.