Here’s what I’m buying as the Stocks and Shares ISA deadline approaches

The recent stock market volatility may have thrown up some bargains for my Stocks and Shares ISA. Here are two I’d buy before the deadline.

| 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.

Shopping cart with boxes labelled REITs, ETFs, Bonds, Stocks

Image source: Getty Images.

Stock markets have been volatile recently. And rightly so, in my view. Russia’s invasion of Ukraine has added a great deal of uncertainty. We’re also experiencing soaring inflation, which may compress profit margins and squeeze consumer spending. But the Stocks and Shares ISA deadline is approaching. So, as a long-term investor, I’ve been sanguine over falling stock markets. It means I can pick up some cheaper shares before the deadline is over!

With this in mind, here are the stocks I’m buying before next month.

A Stocks and Shares ISA investment

I’d first top up my investment in Nvidia (NASDAQ: NVDA), the leading designer of computer graphics cards. Like most share prices, the stock has come under pressure recently and is down by 10% so far this year. I think this may represent a buying opportunity. Analysts seem to think so, too, as the consensus share price target is $338, or 27.5% above today’s share price.

Nvidia benefits from being the leader in computer graphics card design. In fact, the company invented the graphics processing unit (GPU) that is now a crucial component in various high-end computers.

GPUs are also required in advanced technology such as artificial intelligence and autonomous driving. I see these technological trends as being huge catalysts for Nvidia’s growth in the years ahead. As a long-term investor, this does get me excited about buying Nvidia’s shares.

It hasn’t been all good for the company recently though. It failed in its attempt to buy Arm from SoftBank. This was a big disappointment, in my view, as Arm is a leading chip designer focusing on central processing units, or CPUs. It would have diversified Nvidia’s business, and potentially led to quicker growth for the company.

Nevertheless, I’d add Nvidia shares to my portfolio today.

One more stock I’d buy

I’d also buy the home repair services group Homeserve (LSE: HSV). It owns the platform Checkatrade, which I think strengthens the business as it’s a trusted place to find tradespeople in the UK.

The share price has been almost in freefall recently though. This year alone the price has dropped 21%. And over one year, the stock is down a huge 41%. It means the shares are valued on a lowly price-to-earnings ratio of 12 based on next year’s earnings forecast. I think there could be some good value here.

Financial performance looks to be improving, too. Revenue is expected to rise by 8% in fiscal year 2023 (the 12 months to 31 March 2023). Net profit is expected to rise by an even bigger 13%, which suggests that margins are improving.

The investment isn’t without risk. Homeserve is undergoing a transformation plan of its UK business as it tries to return it to growth. It’s a key risk to consider because the UK is Homeserve’s most established market.

But for me, I think the risks are full priced into the shares. So I’d buy the company in my Stocks and Shares ISA before the deadline next month.

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.

Dan Appleby owns shares of Nvidia. The Motley Fool UK has recommended Homeserve. 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

Modern suburban family houses with car on driveway
Investing Articles

Should I snap up Taylor Wimpey shares at £1.30?

With the Taylor Wimpey share price down by almost 30% this year, should I snap up some shares while it's…

Read more »

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

How I’m finding shares to buy now – and keep for a decade

Our writer has been looking for shares to buy using an approach that looks both at long-term profit prospects and…

Read more »

Bearded man writing on notepad in front of computer
Investing Articles

What’s happening to the Petrofac (PFC) share price?

The Petrofac (LON:PFC) share price has had a seriously erratic year so far. I take a look at the latest…

Read more »

Young black woman in a wheelchair working online from home
Investing Articles

The Aviva share price is flying! Should I buy this 7% yield?

Despite recent gains, Roland Head thinks the Aviva share price could still be too cheap.

Read more »

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

Here’s 1 passive income opportunity not to be missed!

This Fool details a passive income opportunity that could bolster his holdings, and the shares trading at cheap levels too.

Read more »

Young brown woman delighted with what she sees on her screen
Investing Articles

The Legal & General share price is dirt-cheap with a juicy dividend yield!

Jabran Khan takes a closer look at the Legal & General share price which looks like an opportunity to boost…

Read more »

Playful senior couple in aprons dancing and smiling while preparing healthy dinner at home
Investing Articles

If I’d invested £1,000 in this top lithium stock 5 years ago, here’s how much I’d have now!

This lithium stock has gone from strength to strength over the past year. But has it flown too high, or…

Read more »

Smiling white woman holding iPhone with Airpods in ear
Investing Articles

A growth stock with a price-to-earnings ratio of just 9.7! Should I buy Yalla?

I'm generally not too keen on investing in dollar-demonated stocks at the moment. But Yalla, with its low price-to-earnings ratio,…

Read more »