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Have £1k to invest? I’d buy these 2 FTSE 100 shares in a Stocks and Shares ISA today

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Risks such as coronavirus, Brexit and political uncertainty in the US may cause many investors to determine that now is not the right time to buy FTSE 100 shares. After all, the index’s price level could move lower in the short term if those risks increase in size or scale.

However, at the present time, there appear to be a significant number of long-term buying opportunities within the FTSE 100. Certainly, some of its members may experience a challenging 2020, but they could provide growth potential in the coming years.

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With that in mind, here are two large-cap shares that could deliver impressive performances when purchased in a Stocks and Shares ISA today.

Reckitt Benckiser

Despite reporting a 4.5% rise in its Hygiene Home segment’s like-for-like sales in the third quarter, Reckitt Benckiser’s (LSE: RB) overall performance was disappointing. Its other main segment, Health, recorded a 0.3% decline in like-for-like sales in the quarter.

As such, the company’s refreshed management team is now focusing on improving its operational performance. It will also invest in its various brands to boost sales, which is expected to reduce its margins in the near term.

While disappointing, the company’s recent performance could present a buying opportunity for long-term investors. Reckitt Benckiser has significant emerging market growth potential, and may be able to develop its presence in the direct-to-consumer channel via an investment in e-commerce. This could strengthen its market position and improve the size of its economic moat over the coming years.

The stock’s recent sales performance has caused a fall in its market valuation, with it now trading on a price-to-earnings (P/E) ratio of around 20. Compared to its historic average, this could signify that it offers good value for money. As such, now could be the right time to buy it for the long term.

Berkeley

Another FTSE 100 share that faces an uncertain near-term outlook is Berkeley (LSE: BKG). The housebuilder is focused on London, and could be negatively impacted by investor uncertainty regarding Brexit and the prospect of future trade deals. This may lead to continued low investment in the UK from international investors, which could lead to modest profit growth for the company.

Despite this, Berkeley recently announced an increase in the scale of its capital return plan. It now plans to return £1bn to its shareholders over the next two years, which is an increase of £455m on the previous figure. It also expects to increase its production and delivery by 50% over the next six years, with its prospects being underpinned by 25 long-term regeneration sites.

Although the stock has risen sharply in recent months, its P/E ratio of 15 suggests that it could offer good value for money given its long-term profit potential and strong market position in London’s prime property sector.

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Peter Stephens owns shares of Berkeley Group Holdings and Reckitt Benckiser. 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.

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