2 brilliant bargains I’m considering for my Stocks and Shares ISA!

These FTSE 100 and FTSE 250 shares offer exceptional value on paper. Here’s why I’m considering them for my Stocks and Shares ISA.

| 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.

The FTSE 100 and FTSE 250 have risen around 7% since the start of 2024. This has allowed many Stocks and Shares ISA investors like me to enjoy some strong returns in that time.

Right now, I’m looking for some undervalued shares that haven’t enjoyed robust gains.

Investing guru Warren Buffett‘s maxim is “to be fearful when others are greedy and to be greedy only when others are fearful.” Like him, I aim to buy quality stocks when they are trading at rock-bottom prices, which over the long haul can lead to significant capital gains.

Should you invest £1,000 in Phoenix Group Holdings 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 Phoenix Group Holdings Plc made the list?

See the 6 stocks

Buffett’s $144bn fortune illustrates the massive potential of this stock buying strategy.

Bank of Georgia

Created with Highcharts 11.4.3Lion Finance Group Plc PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

Of my list of best bargains to consider for my Stocks and Shares ISA, Bank of Georgia (LSE:BGEO) is perhaps near the top.

This FTSE 250 share has toppled 30% in value during the past six months. Along with regional rival TBC Bank, it’s slumped in value as Georgia’s political system has endured fresh upheaval.

Both have plunged after last month’s general election, an event plagued by accusations of vote rigging and violence. It’s driven a fresh wedge between the country’s prime minister and president, and casts potential doubt on Georgia’s economic trajectory (and its potential membership of the European Union).

I’d argue, however, that this troubling backdrop is baked into the cheapness of Bank of Georgia’s shares.

The emerging market bank trades on a forward price-to-earnings (P/E) ratio of 3.3 times

Bank of Georgia's P/E ratio
Source: TradingView

The bank also carries a big 6.2% dividend yield for this year.

At these levels, I find the FTSE 250 share very attractive, even accounting for the uncertain political backdrop. Profits here leapt 16% in the first half of 2024, as Georgia’s strong economy drove further growth in the country’s booming banking sector.

Vodafone

Created with Highcharts 11.4.3Vodafone Group Public PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

Telecommunications is generally not considered to be a highly cyclical industry. In fact, revenues tend to be even more stable nowadays as our lives become more digitalised, which in turn protects demand for broadband services and mobile data.

Such companies aren’t completely immune to recessions, however. And with President-elect Trump threatening Europe with thumping trade tariffs, local businesses like Vodafone (LSE:VOD) face a potential regional downturn.

This scenario could significantly hamper the firm’s turnaround plans in key market Germany. Yet at current prices, I still find the telecoms titan an attractive stock to possibly buy.

Its price-to-book (P/B) value of 0.4 is below the value threshold of 1. This indicates that Vodafone shares trade at a huge discount to the value of its assets.

Vodafone's P/B ratio
Source: TradingView

The business also offers excellent value from an income perspective, its forward dividend yield standing at 5.2%.

Vodafone faces challenges in the near term. But I remain optimistic looking further out as the digitalisation trend rolls on. I’m also optimistic for the company’s fast-growing African territories where it offers telecoms and mobile money services.

If I buy Vodafone shares today, they could deliver significant long-term returns.

Should you invest £1,000 in Phoenix Group Holdings 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 Phoenix Group Holdings 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 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.

Our best passive income stock ideas

Do you like the idea of dividend income?

The prospect of investing in a company just once, then sitting back and watching as it potentially pays a dividend out over and over?

If you’re excited by the thought of regular passive income payments, as well as the potential for significant growth on your initial investment…

Then we think you’ll want to see this report inside Motley Fool Share Advisor — ‘5 Essential Stocks For Passive Income Seekers’.

What’s more, today we’re giving away one of these stock picks, absolutely free!

Get your free passive income stock pick

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 »