2 FTSE 100 shares I’ve been buying for my Stocks and Shares ISA

Edward Sheldon has been taking advantage of recent stock market volatility and buying high-quality FTSE 100 shares for his portfolio.

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There’s a lot of economic uncertainty right now. This is reflected in the performance of the FTSE 100 index, which has been disappointing lately.

As a long-term investor, however, this uncertainty hasn’t stopped me from buying shares. With that in mind, here’s a look at two Footsie stocks I’ve bought more of for my ISA recently.

Capitalising on the ‘funflation’ theme

First up is hotel company InterContinental Hotels (LSE: IHG).

Here, I recently bought more shares near the 5,650p level.

I added to my position in IHG because I believe that, despite economic challenges, people are going to continue spending money on hotels in the years ahead.

In the short term, one factor that could drive revenue growth is spending on experiences.

Taylor Swift’s Eras tour is a good example here.

This tour – which is set to last until the the end of 2024 – is resulting in a lot of spending on hotels.

For instance, in June, Chicago saw record hotel occupancy thanks to her concerts.

Analysts at Bank of America refer to this spending on live experiences and travel as ‘funflation’ and they reckon it could be a lasting trend.

Looking further out, I think cashed-up Baby Boomers are likely to splash out heavily on hotels over the next decade as they spend their retirement savings.

Of course, a downturn in consumer spending is a risk here. If economic conditions continue to deteriorate, people may start spending less on non-essentials.

Over the long term, though, I think this company is likely to see its revenues and profits rise.

I picked up shares at a multiple of 16.9 times next year’s earnings forecast ($4.08 per share), which I think is very reasonable.

A sleeping giant

Another stock I’ve been buying more of is financial markets infrastructure and data powerhouse London Stock Exchange Group (LSE: LSEG).

I see this stock as a bit of a ‘sleeping giant’. For several years now, it has traded sideways.

However, in that time, the company’s revenues and earnings have been climbing, and I think it’s only a matter of time until its share price starts to motor higher to reflect the growth (this move may have already started).

A recent trading update showed that the company has plenty of momentum right now.

For Q3, total income was up 8% year on year with growth in all divisions (Data & Analytics, Capital Markets, and Post Trade).

And looking ahead, the company said that it was expecting growth of 6-8% for the full year.

Now, this stock does have a higher valuation. Currently, the forward-looking price-to-earnings (P/E) ratio here is about 22. This adds a bit of risk.

Given that the group is now one of the major players in the financial data space thanks to its recent acquisition of Refinitiv, however, I can justify the higher valuation.

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 assessed. Consider taking independent financial advice.

Edward Sheldon has positions in InterContinental Hotels Group Plc and London Stock Exchange Group Plc. The Motley Fool UK has recommended InterContinental Hotels Group Plc. 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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