3 UK shares to buy now for an ISA

it’s time for me to research UK shares to buy now for an ISA, and these three have strong balance sheets, impressive quality metrics and robust outlooks.

| 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.

Graph Falling Down in Front Of United Kingdom Flag

Image source: Getty Images

I reckon it’s a great time to research UK shares to buy now for an ISA.

Why I think these are 3 UK shares to buy now

International recruitment consultancy Pagegroup (LSE: PAGE) delivered an upbeat half-year report at the beginning of August. Among the highlights, the company declared an interim dividend worth 4.7p per share and a special dividend of almost 27p per share. The directors had temporarily suspended dividends in 2020 because of the pandemic.

Inflation Is Coming

Inflation is out of control, and people are running scared. But right now there’s one thing we believe Investors should avoid doing at all costs… and that’s doing nothing. That’s why we’ve put together a special report that uncovers 3 of our top UK and US share ideas to try and best hedge against inflation… and better still, we’re giving it away completely FREE today!

Click here to claim your copy now!

But Pagegroup upgraded its outlook in July. And operating profit for 2021 will likely come in between £125m and £135m, which compares well to the 2019 pre-pandemic outcome of £147m. It seems the business is on course to shrug off the effects of the coronavirus crisis.

Chief executive Steve Ingham said in the report the company is the “clear leader” in many of its markets. He thinks the business is well-placed to “grow and improve.”

With the stock near 628p, the forward-looking earnings multiple is just below 18 for 2022. That’s not cheap. But I’m encouraged by the cash-generating and quality credentials of the enterprise and would add it to my ISA.

Further strong growth ahead

Meanwhile, Mortgage Advice Bureau (LSE: MAB1) has a multi-year record of impressive rises in revenue, earnings and shareholder dividends. The shares have increased greatly to reflect the progress. However, I’m encouraged by the firm’s strong balance sheet and robust quality metrics. And City analysts expect further double-digit percentage gains in earnings ahead.

With the stock near 1,440p, the forward-looking earnings multiple is near 32 for 2022. So it’s not a cheap buy. But Mortgage Advice Bureau could prove to be decent value in the end if operational progress continues in the years ahead.

In an update delivered in July, chief executive Peter Brodnicki said he’s “confident” recent developments in lead generation and ongoing enhancements to the technology platform will “accelerate” the pace of growth. That’s an enthusiastic assessment and it gives me the courage to buy the stock now for the long term.

Cyclical but growing

Somero Enterprises (LSE: SOM) manufactures laser-guided equipment for automating the process of spreading and levelling concrete for commercial flooring and other horizontal surfaces.  The company reckons it supplies equipment, training, education and support to customers in more than 90 countries.

Earnings and the share price have been up and down a bit over the past few years. And I reckon that reflects the inherent cyclicality in the industry. However, there’s no mistaking the longer-term trend for the business and its stock – up! Indeed, the company appears to be succeeding and expanding.

And with the share price near 479p, the earnings multiple for 2022 is just over 13. I think that lower rating accommodates the cyclical uncertainty ahead. But Somero has a strong balance sheet, impressive quality indicators, and a chunky dividend for shareholders to collect.

In July, the company raised its earnings guidance because of “stronger than anticipated trading in the US.”  And, looking ahead, the business has a pipeline of new products targeted to expand the addressable market. I like what I’m seeing here and would add the stock to my ISA.

A positive outcome isn’t certain. And I could lose money on these stocks if they fail to meet earnings expectations. But I’m prepared to embrace the risks with a multi-year holding period in mind.

And I'm also considering this one:

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.

Kevin Godbold has no position in any of the shares mentioned. The Motley Fool UK has recommended Somero Enterprises, Inc. 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.

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.

More on Investing Articles

Female florist with Down's syndrome working in small business
Investing Articles

2 promising penny stocks to buy on the dip

As stock markets continue to correct, I am hunting for oversold penny stocks that I think could help turbocharge my…

Read more »

Hand of person putting wood cube block with word VALUE on wooden table
Investing Articles

I wouldn’t buy Bitcoin today. FTSE value stocks look much better value to me

Now looks like a promising time to buy UK value stocks, while Bitcoin still looks far too risky for me.

Read more »

Portrait of elderly man wearing white denim shirt and glasses looking up with hand on chin. Thoughtful senior entrepreneur, studio shot against grey background.
Investing Articles

The Rolls-Royce share price is below 85p. Here’s what I’m doing!

The Rolls-Royce share price has suffered this year. Trading for below 85p, this Fool decides whether this is an opportunity…

Read more »

A young woman sitting on a couch looking at a book in a quiet library space.
Investing Articles

4 dividend stocks to buy as inflation soars!

I'm hunting for the best dividend stock to invest in as global inflation soars. Here are several high-dividend-yield shares that…

Read more »

Happy young female stock-picker in a cafe
Investing Articles

UK shares to buy now: 3 big fallers I’d snap up

Our writer thinks this trio of strong business performers could be attractive UK shares to buy now for his portfolio.

Read more »

Lady researching stocks
Investing Articles

Could a falling stock market help me get rich?

When the stock market falls, what does it mean for our writer's portfolio? Here's why it could be an opportunity.

Read more »

Hand holding pound notes
Investing Articles

Should I buy these two 12%-yielding dividend shares for my Stocks and Shares ISA?

Do these double-digit dividend yielders offer our author the right balance of risk and reward for his Stocks and Shares…

Read more »

Smiling young man sitting in cafe and checking messages, with his laptop in front of him.
Investing Articles

3 reasons to buy Lloyds shares at 43p

Our writer outlines three factors that make him bullish on Lloyds shares, as well as one noteworthy risk facing the…

Read more »