A battered UK stock and an ETF I’m eyeing up for my ISA in September

I’m on the hunt for beaten-down UK shares and funds to buy for my Stocks and Shares ISA. Here are two of my favourites this month.

| 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 hoping to have cash to invest in my Stocks and Shares ISA later this month. Here are a couple of shrewd investments I’ve added to my list of possible buys.

The stock

Created with Highcharts 11.4.3Clarkson Plc PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

Shipbroker Clarkson (LSE:CKN) endured a miserable August as panicked investors headed for the exits. It fell by double-digit percentages after a frosty reception to half-year financials at the start of the month.

Could the sell-off be signs of an overreaction by the market however? I think so. Revenues and underlying pre-tax profit both slipped 3% in the six months to June. However, this needs to be seen in the context of the ultra-strong comparatives of a year earlier.

Should you invest £1,000 in Clarkson Plc 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 Clarkson Plc made the list?

See the 6 stocks

Encouragingly, Clarkson kept its full-year forecasts unchanged.

One of the main things I like about the FTSE 250 firm is its ultra-progressive dividend policy. It’s raised shareholder payouts for 21 straight years.

And thanks to its strong cash generation, it raised the interim dividend again — by 7% — despite the aforementioned profits drop.

Investing in cyclical companies like this can be a bumpy ride at times. As a supplier of ship financing, logistics services and maritime research, earnings can take a smack during economic downturns.

However, from a long-term perspective, I think the future’s extremely bright here. Demand for shipping will steadily rise in line with the growth in international trade. Around four-fifths of goods are transported via sea.

And with its strong brand name and presence on six continents, Clarkson’s in great shape to win lots of business looking ahead.

The ETF

Created with Highcharts 11.4.3Global X Funds - Global X Copper Miners ETF PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

Commodity price volatility’s only one common risk that mining companies have to endure. Problems at the exploration, project development and production phases can be common. And these can take a big bite out of earnings.

Investors can reduce, but not eliminate, this risk by purchasing an ETF that holds a variety of different miners though. One such fund on my radar today is the Global X Copper Miners ETF (NYSEMKT:COPX).

The fund invests in dedicated copper miners alongside more diversified operators. The 40-strong list includes leading producers like First Quantum Minerals, BHP, Glencore and Antofagasta.

But why buy the ETF now? With copper prices falling sharply in recent months, so has the value of the fund. It now trades on an historically low P/E ratio of 13.6 times.

I think this could represent an attractive dip-buying opportunity for long-term investors like me to consider. Copper demand is poised for strong growth thanks the growing green economy and continued urbanisation.

Indeed, Bloomberg analysts think demand will rise to 43m metric tonnes by 2050, up from the 26m recorded in 2022.

This Global X fund has delivered an attractive average annual return of 19% over the past five years. I think it could be a great way to target big returns from the copper boom.

But what does the head of The Motley Fool’s investing team think?

Should you invest £1,000 in Clarkson Plc 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 Clarkson Plc made the list?

See the 6 stocks

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 no position in any of the shares mentioned. The Motley Fool UK has recommended Clarkson 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.

Pound coins for sale — 51 pence?

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

artificial intelligence investing algorithms
Investing Articles

Up 272% in just a year, is Palantir stock just getting started?

This writer recognises that Palantir has grown its business very well -- but does the stock price offer him an…

Read more »

Runner standing at the starting point with 2025 year for starting in new year 2025 to achieve business planing and success concept.
Investing Articles

Up 50%? The Aston Martin share price forecast is mind-blowing! 

If analysts are right, the Aston Aston Martin share price could absolutely rocket in the year ahead. Harvey Jones says…

Read more »

Investing Articles

As the S&P 500 drops, here are 2 Stocks and Shares ISA holdings I’m watching

Our writer has different views on how President Trump's tariffs might affect these two US holdings in his Stocks and…

Read more »

Surprised Black girl holding teddy bear toy on Christmas
Investing Articles

£10,000 invested in Tesla stock at Christmas is now worth…

Tesla stock has been one of best-performing investments of the past decade. But things haven't gone to plan for investors…

Read more »

Investing Articles

Up 279% in 5 years, could Meta stock keep soaring?

Meta stock has more than tripled in five years. This writer sees lots to like about the business but also…

Read more »

Pink 3D image of the numbers '2025' growing in size
Investing Articles

25% total return in a year? Is now the perfect time to buy BP shares?

BP shares are on the front line of today's global economic and political uncertainty but analysts think they can still…

Read more »

Affectionate Asian senior mother and daughter using smartphone together at home, smiling joyfully
Investing Articles

With Cash ISA changes coming, could now be the time to consider buying shares?

Changes to the Cash ISA could lead to greater investment in the stock market. This could be a good thing…

Read more »

Investing Articles

These FTSE 100 dividend shares just got cheaper, thanks to President Trump!

Investors buying dividend shares can lock in bigger long-term yields when share prices take a tumble. These two just did…

Read more »