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3 unstoppable FTSE 100 stocks I’d buy for my Stocks & Shares ISA

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There is an unmistakable benefit to putting my investible funds in a Stocks and Shares ISA. And that is the tax advantage. I can invest an amount up to £20,000 in the account each year, and have to pay no dividend or capital gains. The is especially one to consider when I am thinking of buying unstoppable stocks that I believe are more likely than others to earn me some serious capital gains over time. Here are three examples. 

Ashtead: FTSE 100 stock that could win big in 2022

The first is the FTSE 100 industrial equipment supplier Ashtead (LSE: AHT). I have long liked the stock for its solid performance. And this shows up in its stock price as well. Consider this. It is up 135% from its pre-pandemic highs as I write! In other words, not only has it been largely unaffected by the pandemic, it is at record highs. In the past year alone, it has doubled. 

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And better times could be ahead for it. Of its business, 80% comes from the US, which is about to embark on a huge infrastructure development drive. This should hold the stock in good stead in 2022. Its dividend yield is a downer at 0.7% if I intend to hold it only for a couple of years or so. Over time, though, the dividend growth makes it a rewarding stock to hold from a passive income perspective. Also, at 28 times, its price-to-earnings (P/E) ratio is higher than the 20 times level for the average FTSE 100 stock. Still I think that is the price for buying a valuable stock. I intend to buy it soon enough. 

Segro: gains from e-commerce boom

I also like the warehousing real estate investment trust (REIT) Segro (LSE: SGRO), which has gained over 50% in the past year. I like its long-term prospects, since space for storing goods has acquired a premium at a time of booming e-commerce. The company has reported good earnings for some time now, and its outlook is positive too. It also has a ridiculously low P/E of 6.6 times, though as I wrote at length in an article on it last week, there is debate on whether it is a good measure for such companies. 

As per an alternative measure, which is price as a proportion of net asset value, it is overvalued, which is a bit of a disappointment. Also, like Ashtead, its dividend yield is an underwhelming 1.4%. So, maybe it is not one for a short to even medium-term investment. But we at the Motley Fool like long-term investments, and I believe this is one stock whose true value could be realised over the next decade. I will buy it soon too. 

Spirax-Sarco Engineering: meteoric rise

Last but not least, I like Spirax-Sarco Engineering. When I first started writing here a few years ago, it was a FTSE 250 stock. Now, it is the priciest FTSE 100 stock. That says something about its progress, which is underpinned by strong business performance. In the past year alone, its share price has risen over 40%. With such robust growth, it is pricey even in relative terms, with a P/E of a huge 60 times. Still, I like it and ideally, would like to buy it on a small dip. 

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Manika Premsingh 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.

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