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A cheap UK share and a US stock I’d buy in my Stocks and Shares ISA right now

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Okay, the ongoing Covid-19 crisis means the economic outlook remains fraught with danger. But I’d still buy this cheap UK share and cutting-edge US stock in my Stocks and Shares ISA. I think they could make me chunky investment returns this decade.

Riding the electric revolution

Investing in UK and US shares involved in the production and running of electric vehicles (or EVs) seems like a good idea right now. According to UBS, EVs will make up 40% of all new car sales by the end of the decade.

5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!

According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…

And if you click here we’ll show you something that could be key to unlocking 5G’s full potential...

I think buying shares in US-listed Chinese car manufacturer NIO (NYSE: NIO) is a great way to play this theme. Bear in mind, though, that City analysts don’t expect the business to turn a profit within the next two years at least.

There are still around 1bn citizens in China who are yet to buy a car, according to Mckinsey, meaning there are plenty of customers for NIO to win. And the Chinese government is making efforts to put EVs at the front of its green agenda. It’s why the Chinese Society of Automotive Engineers expects so-called new energy vehicles (or NEVs) to account for 50% of all new auto sales in the country by 2035.

There’s a chance that NIO might not have things all its own way though. This is because competition in the EV field is picking up as demand for these green machines grows. It’s also because hydrogen fuel cells also look set to soar in popularity. The Hydrogen Council estimates that there could be 13m hydrogen-powered vehicles on the road by 2030. That’s a risk to NIO’s investment case that I have to bear in mind.


A green UK share

I think another great way to ride the green transport agenda is to buy Sylvania Platinum (LSE: SLP). This is because this UK share’s product is used in higher and higher amounts in the production of catalytic converters. Platinum and palladium are used in these devices to shrink cars’ exhaust emissions, helping countries to meet their carbon reduction targets.

Don’t think that prices of Sylvania’s product will rise only because of increasing industrial demand though. There are also more and more signs that investor interest in platinum group metals (PGMs) is poised to soar. A survey by the Global Palladium Fund showed that 49% of investors and wealth managers plan to “significantly” increase their platinum holdings. And 37% expect to report a slight rise. It’s no surprise to me that investor interest is expected to keep rising either. Precious metals are classic safe-havens in times of rising inflation.

City analysts expect Sylvania’s annual earnings to rocket 174% in this fiscal year (to June 2021). This leaves the mining play trading on a dirt-cheap forward price-to-earnings (P/E) ratio of 5 times.

But be warned: the production of raw materials is packed with perils that can harm earnings, like safety-related stoppages, disappointing payloads and rising labour costs, to name just a few. It’s quite possible that this UK share’s bright profits forecasts could be blown wildly off course.

A Top Share with Enormous Growth Potential

Savvy investors like you won’t want to miss out on this timely opportunity…

Here’s your chance to discover exactly what has got our Motley Fool UK analyst all fired up about this ‘pure-play’ online business (yes, despite the pandemic!).

Not only does this company enjoy a dominant market-leading position…

But its capital-light, highly scalable business model has previously helped it deliver consistently high sales, astounding near-70% margins, and rising shareholder returns … in fact, in 2019 it returned a whopping £150m+ to shareholders in dividends and buybacks!

And here’s the really exciting part…

While COVID-19 may have thrown the company a curveball, management have acted swiftly to ensure this business is as well placed as it can be to ride out the current period of uncertainty… in fact, our analyst believes it should come roaring back to life, just as soon as normal economic activity resumes.

That’s why we think now could be the perfect time for you to start building your own stake in this exceptional business – especially given the shares look to be trading on a fairly undemanding valuation for the year to March 2021.

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Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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.