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3 of the best stocks to buy in an ISA

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A new tax year has begun, giving Stocks and Shares ISA investors like me a fresh £20,000 annual allowance to play with. Here are several stocks I think are among the best for me to buy now.

The new normal?

I believe investing in firms that let people work from home could be one of the hottest games in town. According to Claire McCartney, senior policy advisor at the Chartered Institute of Personnel and Development (CIPD): “The pandemic has shown that ways of working that previously seemed impossible are actually possible.”  

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

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In fact, a recent survey by the CIPD shows 71% of employers thought worker productivity had either improved or stayed the same during home-working periods. And a third of the 2,000 respondents said that productivity has increased.

It’s also no surprise that the report showed many respondents plan to change their working practices. A whopping 63% said they plan “to introduce or expand the use of hybrid working to some degree.”

Young lady working from home office during coronavirus pandemic.

No video nasties

Huge progress in IT and communications has allowed people to work from home en masse during the pandemic. It might not be a surprise then that these are the sort of shares I think are some of the best stocks to buy to ride the flexible working theme.

The use of video conferencing and calling has been a popular substitute for traditional face-to-face workplace interaction in the past 12 months. Indeed, to ‘Zoom’ someone has now become part of the modern lexicon. But share investors don’t need to buy that US share or Microsoft (of Microsoft Teams, naturally) to seize on this opportunity.

LoopUp Group is an AIM-quoted stock that’s an expert in the business of cloud communications (for the uninitiated, the ‘cloud’ refers to servers that can be accessed from anywhere and thus allow people to work from home). And I’d happily buy it for my ISA. Be aware though, LoopUp is tiny compared to its US rivals and could ultimately be crowded out.

More of the best stocks to buy

There are many other UK shares that offer cloud-based services to companies and individuals. Softcat, for example, builds hybrid infrastructure systems that blend the use of data centres with private clouds. It offers a variety of other IT services too. But the rise of cyber attacks pose a serious threat to future earnings. A breach of its systems that result in client damage could seriously damage its reputation.

I also think investing in semiconductor maker IQE is a good idea. This is because companies will need to buy hardware to enable their employees to work flexibly in large numbers. Demand for the chipsets used in data centres is poised to increase too.

While changes in its end markets could see this UK share’s products become obsolete pretty fast, I’d still happily buy this UK share for my ISA right now.

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.

Click here to claim your copy of this special report now — and we’ll tell you the name of this Top Growth Share… free of charge!

Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Royston Wild has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Microsoft and Zoom Video Communications. The Motley Fool UK has recommended LoopUp Group and Softcat. 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.

Our 6 'Best Buys Now' Shares

Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.

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