The Motley Fool

ISA investing: 2 UK penny stocks I’m thinking of buying right now!

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.

I’m on the hunt for some great British stocks to buy for my Stocks and Shares ISA. Clearly the economic outlook for the short-to-medium term remains packed with danger as the Covid-19 crisis drags on. But as someone who buys UK shares for the long haul (say a decade or more) I think there’s still plenty of opportunity to make money. There’s a wide range of UK penny stocks alone on my radar right now.

Here are two exciting low-cost shares I think could generate big returns for me over the next decade at least.

5 Stocks For Trying To Build Wealth After 50

Markets around the world are reeling from the coronavirus pandemic… and with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.

But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be a daunting prospect during such unprecedented times.

Fortunately, The Motley Fool UK analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global upheaval…

We’re sharing the names in a special FREE investing report that you can download today. And if you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio.

Click here to claim your free copy now!

Turkish delight

Investing in UK shares that have significant operations in Turkey is a turn-off for many as economic conditions there worsen. It’s a problem that theoretically threatens to derail profits growth at DP Eurasia (LSE: DPEU), a penny stock that sources around 70% of revenues from the country. The fact that the company reports its results in Turkish lira adds an extra layer of risk too.

But it’s not all doom and gloom as the business — which operates the Domino’s Pizza franchise in Turkey, Russia, Georgia and Azerbaijan — is expected to witness explosive takeaway demand in its markets over the longer term. The eggheads at Statista, for example, think that the Turkish online food delivery market will expand at a compound annual growth rate of 8.7% through to 2024. The strength of the Domino’s brand means that DP Eurasia should make the most of this opportunity too. This penny stock is on my shopping list today. But I may hold off before buying and wait for economic conditions in Turkey to stabilise a bit before investing.

DP Eurasia trades at 74p per share.

Another top penny stock

I wouldn’t have any problems adding Raven Property Group (LSE:RAV) to my Stocks and Shares ISA right now, however. This UK share owns and operates warehouse facilities in Russia. And the lion’s share of these are located in the major metropolises of Moscow and St Petersburg. This means that this stock’s in great shape to exploit fast growth in the Russian e-commerce sector. Analysts at Euromonitor, for example, expect online sales in the country to rise between 10% and 15% over the next five years.

It’s perhaps no surprise that investment in Russia’s warehousing and logistics industries is rising. Just this week Reuters broke the news that Sberbank, the nation’s largest bank, was planning to spend between $4bn and $4.6bn on non-banking operations. A significant chunk of this cash is earmarked specifically for the logistics sector too. Be warned though, the slapping of new sanctions on Russia by the US could hamper projected e-commerce growth rates in the coming years. And so profits at Raven Property could well disappoint and pull the penny stock’s share price lower.

Raven Property Group changes hands at 28p per share.

FREE REPORT: Why this £5 stock could be set to surge

Are you on the lookout for UK growth stocks?

If so, get this FREE no-strings report now.

While it’s available: you'll discover what we think is a top growth stock for the decade ahead.

And the performance of this company really is stunning.

In 2019, it returned £150million to shareholders through buybacks and dividends.

We believe its financial position is about as solid as anything we’ve seen.

  • Since 2016, annual revenues increased 31%
  • In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259
  • Operating cash flow is up 47%. (Even its operating margins are rising every year!)

Quite simply, we believe it’s a fantastic Foolish growth pick.

What’s more, it deserves your attention today.

So please don’t wait another moment.

Get the full details on this £5 stock now – while your report is free.

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Domino's Pizza. 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.

Our 6 'Best Buys Now' Shares

Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.

So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee.

Simply click below to discover how you can take advantage of this.