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Why I’d buy these 2 FTSE 100 shares in a Stocks and Shares ISA today to make £1m

The FTSE 100 could offer significant growth potential in the coming years. A number of its members currently trade on low valuations when their future prospects are taken into account.

Furthermore, when purchased through a Stocks and Shares ISA, the FTSE 100 offers tax-efficiency for investors that could improve their long-term return prospects.

As such, now could be the right time to buy these two FTSE 100 stocks. They appear to offer good value for money at their current price levels, and could improve your chances of making a million.

Barratt Developments

The near-term prospects for housebuilders such as Barratt (LSE: BDEV) continue to be highly uncertain. Brexit, the general election and weak consumer confidence could combine to create challenging operating conditions for the wider sector.

However, the stock’s price-to-earnings (P/E) ratio of 9 shows that it may offer a wide margin of safety at the present time. As such, the risks it faces could be factored into its market valuation. This could present a buying opportunity for long-term investors.

Even if Barratt experiences a difficult period, its strong balance sheet could enable it to produce a relatively resilient performance. Since interest rates are expected to continue at their low level over the coming years, and demand for new-build property could be robust, the company’s financial performance may be more resilient than its current valuation suggests.

Therefore, on a risk/reward basis, the housebuilder may have investment appeal. Its recent updates have shown that demand for new properties has been high despite political and economic risks facing the UK being significant. This could mean that it offers capital growth potential in the long run.

Segro

Another property-focused FTSE 100 company that may offer long-term growth potential is logistics business Segro (LSE: SGRO). Its recent updates have shown that it has enjoyed strong demand despite macroeconomic uncertainties. In fact, in its most recent quarter, it added further land and assets as it seeks to meet rising demand for new warehousing space.

Over the coming years, the company could experience resilient growth. Trends such as urbanisation and technological change mean that many businesses are investing in upgraded supply chains that provide greater convenience for consumers, as well as lower costs. Segro has over one million square metres of new space currently under construction. Therefore, its rental income could increase substantially over the next few years.

The stock currently trades on a price-to-book (P/B) ratio of 1.4. This suggests that it offers good value for money, and may be worthy of a higher valuation. Clearly, the performance of the UK economy could impact on its financial prospects. But with structural changes to the economy likely to benefit its performance in the long run, it could deliver a rising bottom line that encourages its share price to do likewise.

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Peter Stephens owns shares of Barratt Developments. 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.