The Motley Fool

ISA investing: 3 of the best stocks to buy in May

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.

Lady researching stocks
Image source: Getty Images.

It’s clear investors like me need to remain extremely careful before buying UK shares. Okay, prices of British stocks have risen solidly in recent sessions, and the FTSE 100 just burst through 7,000 points again.

But market confidence remains extremely fragile and some of what I consider to be some of the best stocks to buy today could well reverse sharply.

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!

As things stand though, I think the following UK shares are worthy of serious attention today. In fact, I’m considering adding them to my own Stocks and Shares ISA right now.

One of the best FTSE 250 stocks to buy?

The Morgan Sindall Group share price has gone gangbusters in recent sessions, thanks to strong trading updates of its own. In mid-April, it rocketed to then-new record peaks when it said results for the full year would “significantly” beat expectations.

I’m therefore excited to see what the construction and regeneration group will have to say when it gives fresh details on recent performance on Thursday, 6 May.

Last month, the FTSE 250 company said trading has accelerated since the start of the 2021. No UK share is without risk, of course. And remember that the long-term performance of Morgan Sindall could be compromised by the intense competition in its markets. But I still think it’s a top buy for May.

Another top ISA pick?

I also think buying Mears Group could be a good idea before full-year results come out on Wednesday, 12 May. I’m not expecting anything spectacular to come out of this UK share, which is responsible for managing and maintaining tens of thousands of properties for local authorities and housing associations.

Rather, I’m predicting another solid release that could help its share price to take out recent 13-month highs. Last time it updated the market in March, it praised its “resilient trading and liquidity performance” and said it expected “a full recovery as lockdown restrictions are lifted.”

I think this UK share is a great long-term stock to buy today, but remember that profits could start to flag if Mears Group loses key contracts.

M&A delivers big rewards

In its last trading release in April, Diploma announced its performance in the first half of its fiscal year had exceeded expectations.

News that strong trading has continued when it updates the market again on Monday, 17 May, could give its share price a fresh dose of rocket fuel.

The FTSE 250 share has undergone massive transformation in recent years and recent acquisitions are driving excellent revenues growth at the technical products manufacturer.

Indeed, sales were up 27% in the six months to March. Bear in mind though, that while Diploma’s M&A-led growth strategy is currently paying off, past performance on this front is no guarantee of future success.

Companies can often end up overpaying on acquisitions, while trading in bolt-on buys can also end up ultimately disappointing. For the time being though, progress at this UK share looks good.

Is this little-known company the next ‘Monster’ IPO?

Right now, this ‘screaming BUY’ stock is trading at a steep discount from its IPO price, but it looks like the sky is the limit in the years ahead.

Because this North American company is the clear leader in its field which is estimated to be worth US$261 BILLION by 2025.

The Motley Fool UK analyst team has just published a comprehensive report that shows you exactly why we believe it has so much upside potential.

But I warn you, you’ll need to act quickly, given how fast this ‘Monster IPO’ is already moving.

Click here to see how you can get a copy of this report for yourself today

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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.