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Should I buy these 3 penny stocks for my ISA?

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I’m searching for the best low-cost UK shares to buy for my Stocks and Shares ISA this August. Should I snap up these penny stocks today?

In good health

There are several reasons why I think Assura (LSE: AGR) could be a great stock for me to buy today. Its role as a provider of primary healthcare property means it operates in one of Britains most defensive sectors. As a result I don’t have to worry too much about the impact of economic downturns on my investment returns.

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I also like this penny stock because demand for healthcare facilities should receive a large bump as Britain’s population rapidly ages. And finally, Assura continues to expand swiftly to make the most of this large opportunity (it added an extra 12 properties to its portfolio in the three months to June, taking the total to 610).

It’s true that changing government policy surrounding the usage and funding of the NHS could hit Assura hard. Still, all things considered, I believe the long-term outlook for this UK share remains ultra-attractive.

An irresistible UK mining share?

Gem Diamonds (LSE: GEMD) is another penny stock that’s caught my eye due to its excellent value, on paper. City analysts think earnings here will rise 19% in 2021. This results in a forward price-to-earnings (P/E) ratio of just 6 times. The kicker too, is that right now the diamond digger boasts a meaty 4.1% dividend yield.

The number of millionaires and billionaires is tipped to keep ballooning during the 2020s. This means that some believe Gem Diamonds is poised to deliver strong and sustained profits growth as demand for its product skyrockets.

I’m not so convinced however, primarily because demand for synthetic diamonds is booming at the expense of naturally-occurring stones. According to Mordor Intelligence, demand in the lab-grown rock market will rise at a compound annual growth rate of 7% between now and 2026.

A better dirt-cheap penny stock

For this reason I’d much rather spend my hard-earned cash on trims, zips and threads manufacturer Coats Group (LSE: COA). Business is booming here as the gradual easing of Covid-19 lockdowns boosts clothing sales (organic revenue was up 34% in the first half versus the corresponding 2020 period). But I think this penny stock isn’t just a great buy for the post-pandemic recovery.

Coats is one of the leading manufacturers of threads on the planet. Consequently it’s in great shape to exploit rising clothing demand that’s driven by relentless population growth and booming wealth levels in emerging markets.

I think it’s a great buy despite the threat that rising consumer concerns around sustainability poses to the fast fashion segment. This could naturally have severe ramifications for sales of the company’s product. That said, at current prices Coats trades on a PEG ratio of just 0.1.

At these sort of prices I think it could prove a very shrewd investment for me.

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

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