Buying a diverse range of UK shares today could boost your Stocks and Shares ISA returns over the coming years. History shows that purchasing stocks when investor sentiment is weak can lead to impressive returns over the long run as the economy’s outlook improves.
With that in mind, here are two FTSE 100 shares that could offer good value for money at the present time. They appear to have the potential to deliver turnarounds after falling in the 2020 market crash.
Buying opportunity for Stocks & Shares ISA investors
Glencore’s (LSE: GLEN) recovery potential could boost your Stocks and Shares ISA over the coming years. The company’s recent half-year results showed that its operations have continued to function relatively normally, despite the disruption caused to the wider economy by the coronavirus.
The business also stated that its marketing segment is performing well. This may differentiate it from other mining businesses, and could help to stabilise its overall financial performance in what is a challenging period for the wider industry.
Glencore’s forward price-to-earnings (P/E) ratio of 15 suggests that it offers fair value for money at the present time. Its plan to focus on debt reduction rather than paying a dividend could strengthen its financial position over the long run. Therefore, now could be the right time to add it to your Stocks and Shares ISA prior to a potential long-term recovery.
Changing outlook could mean share price growth
Imperial Brands (LSE: IMB) could also offer long-term growth potential that improves the outlook for your Stocks and Shares ISA. The company has experienced a very challenging period over recent years. However, it now has a refreshed management team, and could put in place a revised strategy that strengthens its financial outlook.
Even though the company recently reduced its dividend, it continues to have a yield of around 10%. This suggests that investors may have priced in many of the risks faced by the business. As such, it may offer a wide margin of safety.
Certainly, Imperial Brands faces challenges. However, with strong brands and pricing power within its cigarette business, as well as long-term growth opportunities in next-generation products, it could deliver a successful turnaround. Therefore, while a relatively risky stock, it may be a worthwhile purchase in a diverse Stocks and Shares ISA.
Buying shares after a market crash
Clearly, buying shares for your Stocks and Shares ISA after the market crash is a tough task for any investor to undertake. The futures of many shares are still uncertain and could even deteriorate. However, Imperial Brands and Glencore appear to offer good value for money and long-term recovery potential. Over time, they have the potential to contribute to an improvement in your financial position,, I feel.
Peter Stephens owns shares of Imperial Brands. The Motley Fool UK has recommended Imperial Brands. 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.