2 cheap UK stocks! Should investors buy these ‘loved’ FTSE 250 shares?

I am looking for the cheapest UK stocks to buy for my investment portfolio. And below FTSE 250 stocks have recently caught my attention.

They are also among the 10 most popular stocks with investors using the Freetrade stock trading service. Each trades in rock-bottom price-to-earnings (P/E) range and price-to-book (P/B) ratio.

Should investors buy today?

#1: ASOS

Freetrade analyst George Sweeney notes that ASOS (LSE: ASC ) is trading at a forward P/B ratio of 0.6. The online retailer also trades at a higher P/E ratio of 20.5 times, a rating that is said to be attractive to investors.

Sweeney notes that “Its stock price has been in freefall lately“and investors should”be careful to catch the falling knife.”

But the company has stepped up this week after announcing “significant progress” in increasing profits. It closed offices and storage space and pulled underperforming brands to boost its fortunes (the company plans to shed 35 unprofitable labels in the coming months).

These moves could help ASOS’s share price rebound. But I still wouldn’t buy a FTSE 250 retailer for my investment portfolio. Sales in constant currency were 6% in the four months to December, to £1.4bn. They may also continue to slide as the cost of living crisis continues.

Meanwhile, in the longer term it faces increased competition as its rivals increase their own online operations. Demand for fashion products may also suffer from concerns about the environmental impact of ‘fast fashion’ growth. I think the ASOS share price reflects that danger.

#2: International Distribution System

owner of Royal Mail International Distribution System (LSE: IDS) has also been popular with Freetrade users. Sweeney noted that the courier “has gained the attention of many investors as a UK value stock to consider.”

He notes that FTSE 250 companies “it has a P/B ratio of 0.4, a P/E ratio of 9.1 times, and the share price shows signs of recovery after a difficult year..”

IDS can’t stay out of the news these days. Strikes disrupted Royal Mail operations in December and further industrial action could take place next month. Also this week we were hit by a major cyber attack that prevented customers from sending parcels abroad.

In fact couriers are fighting on several fronts. The mail market is notoriously in a state of long-term decline. And IDS has to invest a lot of money to improve its parcel operations to compensate for this.

It is also experiencing a drop in profits as the UK economy shrinks. This is all the more troubling given the huge debt on the company’s balance sheet (net debt of around £1.5bn as of September).

Online retail looks set to continue to grow over the next decade. And couriers like IDS will play an important role in this growth. Strong progress in the company’s GLS international division also led to higher profits. But on balance I think there are cheaper UK stocks out there today.