3 Shares I Would Buy For My ISA Today

Consider Barclays PLC (LON:BARC), Rolls-Royce Holding PLC (LON:RR) and Royal Dutch Shell plc (LON:RDSB) if you’re looking to top-up your stocks and shares ISA allowance.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

Your ISA allowance will expire within hours. If you’re looking to invest tax-efficiently in a stocks and shares ISA, here are three FTSE 100 companies I would buy today.

Barclays

Barclays (LSE: BARC) (NYSE: BCS.US) is 25% cheaper than it was at the start of this year. If you’ve been looking for a buying opportunity, this is probably it. Barclays hasn’t been this cheap for more than 18 months.

barclaysThere is a good reason it has fallen. Investors were aggravated by the recent 32% drop in underlying profits to £5.2 billion, while activists were insulted by chief executive Antony Jenkins’ decision to hike the investment banker bonus pot by 10% to £2.4 billion regardless, while announcing plans to lay off 12,000 lower paid staff.

With earnings per share expected to grow a whopping 67% this year, Barclays is forecast to trade at a tempting 8.8 times earnings by December. The yield is rising too. The share price is up 6% in the week since I tipped it. You don’t want to hang around much longer, or this opportunity could evaporate.

Rolls-Royce Holdings

After 10 years of smooth returns, Rolls-Royce Holdings (LSE: RR) (NASDAQOTH: RYCEY.US) recently issued its first profits warning in 10 years. Investors were shocked to discover there would be no growth in sales or profits this year, and the stock crashed 14% on the day. The City hates nasty surprises, and chief executive John Rishton was condemned for his failure to issue due warning.

Rolls-RoyceRolls-Royce has since slipped into gear, cheering investors by winning a contract with All Nippon Airways (ANA) to supply Trent 1,000 engines to power 25 Boeing 787 Dreamliner aircraft. It followed this by securing a $50 million one-year contract to support the US Marines Corps fleet of KC-130J air-to-air refuelling tankers. 

I suspect recent problems were just a bump in the road, and Rolls-Royce will continue to power ahead. Over the last five years, it has returned 230%. This could be a rare chance to buy a great British company at a reduced price, but only if you’re fast. The share price is already up 6% in the last month, recovering almost half its lost gains.

Royal Dutch Shell

Investors in Royal Dutch Shell (LSE: RDSB) (NYSE: RDS-B.US) have grown accustomed to false starts, but I still have faith that it can reverse its recent underperformance. 

royal dutch shellNew chief executive Ben van Beurden has been showing his mettle with his plans to cut investment to boost financial performance and capital efficiency, and has been rewarded by a string of broker upgrades and outperform ratings. 

The share price is also revving up, rising 10% in the last six months. Yet the valuation remains affordable, trading at a forecast 11.8 times earnings for December. Better still, there’s the yield, currently 4.6%. That is three times as much as you can get on a best-buy cash ISA.

Royal Dutch Shell is expected to post a 30% rise in earnings per share this calendar year. Fill up your tank now, before its share price accelerates further.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Harvey owns shares in Royal Dutch Shell. He doesn't own any other company mentioned in this article.

More on Investing Articles

Investing Articles

Could the JD Sports Fashion share price double in the next five years?

The JD Sports Fashion share price has nearly halved in the past five years. Our writer thinks a proven business…

Read more »

Bus waiting in front of the London Stock Exchange on a sunny day.
Investing Articles

If interest rate cuts are coming, I think these UK growth stocks could soar!

Falling interest could be great news for UK growth stocks, especially those that have been under the cosh recently. Paul…

Read more »

Investing Articles

Are these the best stocks to buy on the FTSE right now?

With the UK stock market on the way to hitting new highs, this Fool is considering which are the best…

Read more »

Petrochemical engineer working at night with digital tablet inside oil and gas refinery plant
Investing Articles

Can the Centrica dividend keep on growing?

Christopher Ruane considers some positive factors that might see continued growth in the Centrica dividend -- as well as some…

Read more »

Smiling family of four enjoying breakfast at sunrise while camping
Investing Articles

How I’d turn my £12,000 of savings into passive income of £1,275 a month

This Fool is considering a strategy that he believes can help him achieve a stable passive income stream with a…

Read more »

Person holding magnifying glass over important document, reading the small print
Investing Articles

2 top FTSE 250 investment trusts trading at attractive discounts!

This pair of discounted FTSE 250 trusts appear to be on sale right now. Here's why I'd scoop up their…

Read more »

Smiling young man sitting in cafe and checking messages, with his laptop in front of him.
Investing Articles

3 things that could push the Lloyds share price to 60p and beyond

The Lloyds share price has broken through 50p. Next step 60p? And then what? Here are some thoughts on what…

Read more »

Young female business analyst looking at a graph chart while working from home
Investing Articles

£1,000 in Rolls-Royce shares a year ago would be worth this much now

Rolls-Royce shares have posted one of the best stock market gains of the past 12 months. But what might the…

Read more »