My Stocks and Shares ISA has a significant focus on the UK. And that’s no accident – it’s the result of where I’ve seen shares in quality companies trading at reasonable valuations in the last few years.
While that’s changed a little bit in recent months, I’m still looking for opportunities to buy UK stocks. And there are a few companies that I’ve got my eye on for the month ahead.
The quality growth stock
Diploma‘s (LSE:DPLM) a FTSE 100 industrial components and equipment distributor. It’s not a stock I own, which is a pity because the company’s grown impressively in recent years.
A strategy of buying smaller businesses and incorporating them into its network has generated outstanding growth. And it’s also well-protected from artificial intelligence (AI) disruption.
The risk with this approach is that there’s always a chance the firm might overpay for an acquisition. And although the company has an outstanding record – especially in recent years – success is never guaranteed.
The more the company grows though, the more its scale gives it advantages over the competition. The stock trades at a high price-to-earnings (P/E) multiple, but I think it’s worth considering.
The under-the-radar winner
Vistry‘s (LSE:VTY) a FTSE 250 housebuilder. The industry hasn’t been in a good way recently, but the latest £39bn affordable housing programme is set to launch.
That means local authorities, housing associations, and other providers are going to be looking for builders to partner with on building projects. And this is what Vistry specialises in.
Partnerships can be complicated and they definitely introduce new risks, but it’s a potential opportunity for a company that has a £2.3bn market value.
This seems to have largely gone unnoticed by investors. I already own Vistry shares in my portfolio, but I’m not averse to adding to my position at the current valuation.
The wildcard
Judges Scientific‘s (LSE:JDG) a scientific instrument company. And the stock has fallen 39% in the last 12 months as weak demand – especially from the US – has been weighing on sales.
There are strong reasons though, for thinking that this might be set to pick up. The US Congress has rejected the administration’s proposed cuts to research budgets, opting to increase them instead.
To some extent, this highlights the key risk of selling primarily into markets where supply depends on government spending. That’s something that the company doesn’t control and can’t really influence.
Nonetheless, I think the stock is in a really interesting position. While management’s latest guidance was relatively conservative, there are reasons to expect business to pick up in 2026.
Which one to choose?
I like all three stocks, but my favourite is Judges Scientific. I can see strong long-term potential with the added boost of a potential recovery in 2026 for the markets it sells into.
I’m a big fan of Diploma, but I think I’ll get a better opportunity further into the future. And Vistry’s a very worthy candidate, but its long-term prospects just look slightly weaker to me.
That’s why I’m looking to buy Judges Scientific for my own portfolio. But I think all three are well worth considering for investors trying to find opportunities in the current market.
