The Motley Fool

Should I buy these 3 penny stocks for my ISA?

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 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.

One Killer Stock For The Cybersecurity Surge

Cybersecurity is surging, with experts predicting that the cybersecurity market will reach US$366 billion by 2028more than double what it is today!

And with that kind of growth, this North American company stands to be the biggest winner.

Because their patented “self-repairing” technology is changing the cybersecurity landscape as we know it…

We think it has the potential to become the next famous tech success story. In fact, we think it could become as big… or even BIGGER than Shopify.

Click here to see how you can uncover the name of this North American stock that’s taking over Silicon Valley, one device at a time…

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.

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 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.

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.