Readers will, of course, know that financial market volatility has detonated in recent months. It’s a theme that’s supercharged investor activity on trading platforms and driven revenues at the likes of CMC Markets (LSE: CMCX) sky high. No wonder the business — which specialises in contracts for difference (CFDs), spread betting and foreign currency trading — has seen its share price rise 28% during the past three months. I reckon it’s a brilliant buy for ISA investors right now too.
CMC Markets’s most recent trading release in early April illustrated the robustness of recent trading levels. It said gross client income (or client transaction fees) at its CFD division had leapt to £241m in the 12 months to March. This compares with £216m in the previous fiscal year. Meanwhile, net trading revenues more than doubled to £241m over the periods.
Cheap and cheery
It’s more than likely trading activity has continued bubbling nicely since the end of March too. And it’s a landscape that CMC Markets can expect to persist. News flow concerning coronavirus infection rates continue to shake nerves, and the severe economic consequences of the Covid-19 outbreak become increasingly apparent. Investor confidence will remain fragile and thus financial markets are set to remain choppy.
The financial giant changes hands on a price-to-earnings (P/E) ratio of 13 times for fiscal 2021. It’s a low reading that gives plenty of scope for more significant share price gains. I’d happily buy this stock for my ISA.
Another top ISA buy
I’m also tipping Centamin (LSE: CEY) to continue its recent sparkling form. It’s no surprise gold investment has rocketed in this time of huge social, political and economic uncertainty. It’s a trend that’s propelled this particular gold digger’s share price 27% higher during the past three months.
Fresh metal price forecasts from TD Securities suggest the landscape should remain ripe for the likes of Centamin to rise in value in 2020 and 2021 too. Sure, its brokers believe bullion values could slip in the near term because of disinflation. But they reckon prices will steadily rise over the next one-and-three-quarter years before striking new record highs of $2,000 per ounce before the close of 2021.
Go for gold
An environment of extremely loose monetary policy from central banks across the globe will drive yellow metal values, TD Securities says. So will subsequent fears over growing inflation and the debasement of paper currencies. And in this Fool’s opinion, these are scenarios that could remain in play long into the new decade at least as the world economy struggles to adjust to the mammoth consequences of the Covid-19 outbreak.
Despite recent share price gains, Centamin still trades on a low forward P/E ratio of 14 times. I think it’s an absolute steal right now and worthy of a place in anyone’s ISA. It’s always a good idea to have some exposure to gold as a hedge for uncertain and troubled periods like these.
