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.

| 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.

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 PriceZoom1M3M6MYTD1Y5Y10YALLwww.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.

Investing in AI: 3 Stocks with Huge Potential!

🤖 Are you fascinated by the potential of AI? 🤖

Imagine investing in cutting-edge technology just once, then watching as it evolves and grows, transforming industries and potentially even yielding substantial returns.

If the idea of being part of the AI revolution excites you, along with the prospect of significant potential gains on your initial investment…

Then you won't want to miss this special report inside Motley Fool Share Advisor – 'AI Front Runners: 3 Surprising Stocks Riding The AI Wave’!

And today, we're giving you exclusive access to ONE of these top AI stock picks, absolutely free!

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.

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

More on Investing Articles

Investing Articles

At a 52-week low but forecast to rise 73%! Is this growth share the FTSE’s top recovery play? 

This FTSE 100 growth share has taken an absolute beating over the past two years but Harvey Jones says the…

Read more »

Investing Articles

This FTSE 250 share offers a juicy 9.8% yield. Will it last?

This well-known FTSE 250 share has a percentage dividend yield approaching double digits. Should Christopher Ruane add the income share…

Read more »

Investing Articles

Is a £333,000 portfolio enough to retire and live off passive income?

A third of a million pounds can generate a serious amount of passive income, but relying on this sum alone…

Read more »

The flag of the United States of America flying in front of the Capitol building
Investing For Beginners

Why FTSE 100 investors should pay attention to ‘Liberation Day’

Jon Smith explains why the upcoming tariff announcement from across the pond could have an impact on the FTSE 100,…

Read more »

Concept of two young professional men looking at a screen in a technological data centre
Investing Articles

Here’s why Nvidia stock fell 13% in March

The Nvidia stock price rise was looking unstoppable. Should investors now be wondering if the same might be true of…

Read more »

US Stock

It’s ISA deadline week! Here’s my 3-step game plan

Jon Smith tries to calm the hype around the last minute ISA rush to buy stocks and explains why he's…

Read more »

Snowing on Jubilee Gardens in London at dusk
Investing Articles

£10,000 invested in BAE Systems shares at Christmas is now worth…

BAE Systems shares have been surging in the FTSE 100 in 2025, driven higher by the wavering US commitment to…

Read more »

Investing Articles

Up 19% in 2 weeks, can the Tesla share price rebound further?

Tesla's first-quarter delivery numbers came out today. Will they help persuade our writer to invest his money at the current…

Read more »