ISA investing: 3 of the best penny stocks to buy now

I’m looking for top cheap stocks to buy for my Stocks and Shares ISA today. Here’s a cluster of brilliant penny stocks I might snap up.

| 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.

I’m hunting for the best low-cost UK shares to buy for my Stocks and Shares ISA. Here are three top penny stocks that have grabbed my attention.

A rock-solid penny stock

Science in Sport (LSE: SIS) is a UK share which put in a remarkably resilient performance last year. Despite the mass closures of gyms and fitness centres the protein-powder-and-nutritional-products manufacturer only endured a fractional sales decline during pandemic-hit 2020.

Strong internet sales have helped the penny stock impress over the past 12 months. And Science in Sport is spending heavily in marketing and its platforms to make the most of the e-commerce explosion moving forwards. Online sales at the business leapt 39% year-on-year in 2020.

I think demand for Science in Sport’s goods will keep growing as people try to eat healthier and exercise more often. And the company’s investing in manufacturing and its supply chain to drive profits growth. I’d buy it for my ISA despite the fierce competition that it faces from the likes of Maximuscle.

The green machine

Renewi (LSE: RWI) is a low-cost UK share I’m backing to perform brilliantly this decade. The Covid-19 crisis has exacerbated existing concerns over sustainability and the impact of humans on the environment. It’s a theme this penny stock — which converts large amounts of the waste it receives into products or energy — is well-placed to exploit.

A pile of British one penny coins on a white background.

Demand for its services from commercial customers has only taken a slight whack despite the public health emergency. This has prompted Renewi to upgrade its profits guidance several times over the past year. And I expect the small-cap to get busier and busier as recycling becomes ever more important.

It’s true that changing legislation in its North American and European marketplaces could hit the penny stock’s earnings hard. But at current prices, I still think Renewi’s shares represent a great buy. Today, the business trades on a forward PEG ratio of just 0.1. A reading below 1 suggests a stock could be trading below value.

An electrifying ISA buy

Pulling raw materials out of the ground is notoriously difficult and extremely expensive. And this means UK shares like Bushveld Minerals (LSE: BMN) can suffer sudden and severe profits trouble. This particular penny stock is a major vanadium producer which it then uses to manufacture components for vanadium redox flow batteries (or VRFBs).

Despite these risks, I think Bushveld is a company that could deliver exceptional profits growth over the medium-to-long term. Green energy sources like solar and wind are exceptionally unpredictable, which means that hardware to store energy when conditions are favourable is essential. And with renewables rising in popularity sales of VRFBs are soaring. Meanwhile, rising energy costs mean individuals and businesses are spending more on the sort of products Bushveld manufactures too.

The experts at Valuates Reports think the VRFB market will be worth $6.2bn by 2026, up from $625.4m in 2019. It’s an upward trend that could give Bushveld Minerals explosive profits and make ISA investors like me excellent returns.

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 considered so you should consider taking independent financial advice.

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.

More on Investing Articles

Shot of an young Indian businesswoman sitting alone in the office at night and using a digital tablet
Investing Articles

How I’d invest £290 a month in UK shares for a passive income that beats the State Pension

UK shares can offer a lucrative path for passive income. Our writer considers a plan to double his State Pension.

Read more »

Middle-aged white man wearing glasses, staring into space over the top of his laptop in a coffee shop
Investing Articles

3 of the best shares to buy now with £2,000

I reckon the best shares to buy now have strong growth in earnings and recent good news flow, such as…

Read more »

Young female analyst working at her desk in the office
Investing Articles

How I’m aiming for £500 a month in income from dividend stocks 

Here's my three-step plan for achieving a growing income from dividend stocks and three companies I'd use to help execute…

Read more »

Warren Buffett at a Berkshire Hathaway AGM
Investing Articles

UK shares are cheap! So why is Warren Buffett ignoring them and should you too?

Many British shares are trading cheaply and pay dividends. This is normally the hunting ground for Warren Buffett, yet he's…

Read more »

Passive income text with pin graph chart on business table
Investing Articles

How I’ve increased my passive income by 600%

Finding the right opportunities can bring spectacular results. Here’s how our author has managed to increase his monthly passive income…

Read more »

Blue NIO sports car in Oslo showroom
Investing Articles

Could lithium shares make my Stocks and Shares ISA a goldmine?

Our writer is considering buying lithium shares for his Stocks and Shares ISA. Here, he outlines the decision process he…

Read more »

British Pennies on a Pound Note
Investing Articles

Is now a great time to start buying penny shares?

Are stock markets set for a rebound? If they are, there are plenty of penny shares around that might be…

Read more »

pensive bearded business man sitting on chair looking out of the window
Investing Articles

Can the Lloyds dividend survive a recession?

The Lloyds dividend has been growing strongly. But its history is more alarming. Christopher Ruane explains why he sold his…

Read more »