Here’s what Stocks & Shares ISA investors are buying today!

ISA investors are piling into these UK and US stocks. But which could be the best buy right now? Royston Wild gives his verdict.

| 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.

Image source: Getty Images

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

I’m always looking for fresh investment ideas. And while I’m keen not to follow the herd, I like to see what other Stocks & Shares ISA investors are buying (or selling) to find opportunities.

Trading platform interactive investor has just released its list of top 10 shares, funds and trusts that were bought by ISA investors in the week to 14 June. It contains several top-quality stocks that I’d be keen to add to my own portfolio when I next have cash to invest.

PositionStockWeekly change
1Legal & General Group (LSE:LGEN)Up 6
2Nvidia CorpUp 1
3Helium OneNew entrant
4Eurasia MiningNew entrant
5Phoenix Group HoldingsUp 5
6National GridDown 5
7Rolls-Royce HoldingsUp 2
8BPDown 6
9GameStop CorpDown 3
10Vodafone GroupDown 5

As the table suggests, I think Legal & General could be the hottest of the bunch. Here’s why I think it could be a top stock to buy right now.

Should you invest £1,000 in Legal & General right now?

When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets. And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Legal & General made the list?

See the 6 stocks

Great value

Created with Highcharts 11.4.3Legal & General Group Plc PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

Legal & General’s place at the top of the table isn’t surprising to me. If I didn’t already hold a large stake in the FTSE 100 company I’d be buying it for my own portfolio today.

The financial services company has slumped on news that dividends will rise at a slower pace than usual between 2025 and 2027. Fresh capital-generation targets some have called ‘soft’ have also prompted many investors to exit or reduce their stakes.

Like interactive investor’s ISA customers, I consider this an excellent dip-buying opportunity. Today, Legal & General shares trade on a forward price-to-earnings (P/E) ratio of 9.5 times. They also now carry a huge 9.4% dividend yield.

A top FTSE buy

As a major provider of retirement and wealth products, the business has significant opportunities to grow earnings and dividends in the coming decades. The world’s population is rapidly ageing — the UN thinks the number of over-65s will rise to 1bn by 2030, and keep rising to hit 1.6bn in 2050 — providing financial services providers like this with a booming potential customer base.

There are many UK, US and European stocks I can buy to capitalise on this trend. But I like Legal & General specifically because of its cash-rich balance sheet.

The firm’s Solvency II capital ratio remains well north of 200%. And it is targeting cumulative Solvency II operational surplus generation of £5bn-£6bn in the three years to 2027. I believe it will have the balance sheet strength to invest heavily for growth while also continuing to pay market-beating dividends.

Tasty forecasts

City analysts believe group earnings will soar 225% year on year in 2024. They are also forecasting growth of 10% and 9% in 2025 and 2026 respectively.

Of course, broker forecasts cannot be guaranteed. Legal & General may print disappointing profits if interest rates fail to fall markedly. It also faces significant competition in each of its markets (including from Phoenix Group, which is also on that top 10 list of ISA buys above).

But on balance, I believe the Footsie firm has exceptional investment potential, in both the near-term and beyond.

AI Revolution Awaits: Uncover Top Stock Picks for Massive Potential Gains!

Buckle up because we're about to dive headfirst into the electrifying world of AI.

Imagine this: you make a single savvy investment in some cutting-edge technology, then kick back and watch as it revolutionises entire industries and potentially even lines your pockets.

If the mere thought of riding this AI wave excites you and the prospect of massive potential returns gets your pulse racing, then you’ve got to check out this Motley Fool Share Advisor report – 'AI Front Runners: 3 Surprising Stocks Riding The AI Wave’!

And here’s the kicker – we’re giving you an exclusive peek at ONE of these top AI stock picks, absolutely free! How’s that for a bit of brilliance?

Get your free AI stock pick

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.

Royston Wild has positions in Legal & General Group Plc. The Motley Fool UK has recommended Nvidia, Rolls-Royce Plc, and Vodafone Group Public. 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.

Like buying £1 for 51p

This seems ridiculous, but we almost never see shares looking this cheap. Yet this recent ‘Best Buy Now’ has a price/book ratio of 0.51. In plain English, this means that investors effectively get in on a business that holds £1 of assets for every 51p they invest!

Of course, this is the stock market where money is always at risk — these valuations can change and there are no guarantees. But some risks are a LOT more interesting than others, and at The Motley Fool we believe this company is amongst them.

What’s more, it currently boasts a stellar dividend yield of around 8.5%, and right now it’s possible for investors to jump aboard at near-historic lows. Want to get the name for yourself?

See the full investment case

More on Investing Articles

Investing Articles

Up 30% in weeks, does the BAE Systems share price still offer value?

The BAE Systems share price has been on a tear over the past couple of months. This writer sees limited…

Read more »

Three signposts pointing in different directions, with 'Buy' 'Sell' and 'Hold' on
Investing Articles

Hunting for shares to buy as the market trembles? Remember this!

After a choppy week in global stock markets, our writer goes back to basics in his hunt for bargain shares…

Read more »

Investing Articles

3 simple principles to help build wealth in an ISA

As a new tax year opens up new ISA allowances for many investors, our writer shares a trio of things…

Read more »

Investing Articles

US trade tariffs: what they could mean for UK shares like Ashtead, Compass Group, and Experian

US trade tariffs continue to rock global markets, and the UK is no exception. Our writer considers how a new…

Read more »

Mindful young woman breathing out with closed eyes, calming down in stressful situation, working on computer in modern kitchen.
Dividend Shares

The Trump slump has smashed these FTSE 100 shares!

After a rough week for US and UK shares, investors have been shaken. But now these FTSE 100 stocks have…

Read more »

Investing Articles

£10,000 invested in Rolls-Royce shares 5 years ago is now worth…

Rolls-Royce shares have been on fire since April 2020. Part of this is the result of pandemic restrictions lifting, but…

Read more »

Young Asian woman with head in hands at her desk
Investing Articles

£10,000 invested in Tesla stock at its peak in 2024 is now worth…

Over the last few months, Tesla stock has lost nearly half its value. Here, Edward Sheldon explores a few takeaways…

Read more »

Investing Articles

Is the S&P 500 heading for an epic stock market crash?

Our writer shares his thoughts on a very crazy time for the S&P 500 and the wider stock market. How…

Read more »