I want to add these 2 FTSE gems to my Stocks and Shares ISA

This Fool wants to make the most of the benefits a Stocks and Shares ISA provides. He’s keen on these two stocks.

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We’re approaching the halfway point for the tax year and that had me thinking about how I could make the most of my Stocks and Shares ISA in the second half.

I’ve made a lot better use of my ISA this year than I did last year. After all, with the tax-free returns on offer, why not? I want to try and get as close to maxing out my £20,000 limit this year as possible.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

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

See the 6 stocks

That’s why I’ve been perusing the FTSE 100 and FTSE 250 for my next buys. In these two, I may have just found them. If I had the cash, I’d buy them today.

ITV

Let’s get the ball rolling with ITV (LSE: ITV). The FTSE 250 broadcasting giant’s had a brilliant 2024. Year to date, its share price has risen 28.3%.

Created with Highcharts 11.4.3ITV PriceZoom1M3M6MYTD1Y5Y10YALL6 Apr 20204 Apr 2025Zoom ▾Jul '20Jan '21Jul '21Jan '22Jul '22Jan '23Jul '23Jan '24Jul '24Jan '2520212021202220222023202320242024202520255075100125150www.fool.co.uk

But I think it has more to give. At 80.8p, I reckon its shares look like a steal. The stock trades on a price-to-earnings (P/E) ratio of 7.5. Its forward P/E is slightly higher at 8.8. Nevertheless, both of those figures are still well below the FTSE 250 average of 12.

On top of that, there’s passive income on offer with its 6.2% dividend yield. The FTSE 250 average is around 3.3%, so it’s considerably higher than that.

What’s more, management seems keen to reward shareholders, which is something I like to see considering dividends are never guaranteed. They most recently showed this by instigating a £235m share buyback scheme following the sale of BritBox.

While it has surged this year, ITV’s suffered over the last five years due to a decline in spending on traditional broadcasting. Customers had already been cutting back. And red-hot inflation didn’t help with this. To go with that, the rise of streaming platforms such as Netflix has forced ITV to adapt.

But it’s doing a good job at that. For example, it’s currently in the process of improving its digital platform. This is mainly through ITVX, its digital streaming service, which saw monthly active users rise by nearly 20% for the first half of the year.

GSK

Next up is pharmaceutical giant GSK (LSE: GSK). Like ITV, the stock’s struggled over the last five years. During that time, it’s lost 7.9% of its value. However, it’s started to reverse its fortunes this year, rising 5.1%.

Created with Highcharts 11.4.3GSK PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

I reckon now could be a smart time for me to consider swooping in. It shares trade on a P/E of 15.9. That looks like fair value, if you ask me.

I also like GSK for its defensive nature. It provides products such as vaccines and medicines, which are essential goods that people require regardless of external factors such as how strongly the economy is performing.

GSK stock’s been under pressure recently due to the firm’s ongoing legal trouble related to Zantac. It’s a heartburn drug that has been linked to causing cancer. Recently, a judge ruled in favour of over 70,000 cases to go forward. Legal complications are always a risk with pharma stocks, and I’ll be watching closely to see how this one develops.

But as it continues to grow its R&D pipeline, along with the 3.9% yield on offer, I’m bullish on GSK over the long term.

Pound coins for sale — 31 pence?

This seems ridiculous, but we almost never see shares looking this cheap. Yet this Share Advisor pick has a price/book ratio of 0.31. In plain English, this means that investors effectively get in on a business that holds £1 of assets for every 31p 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 10%, 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

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.

Charlie Keough has no position in any of the shares mentioned. The Motley Fool UK has recommended GSK and ITV. 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

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