Here are several top FTSE 100 shares and UK penny stocks I’m thinking of adding to my Stocks and Shares ISA today.
There are several reasons why precious metals prices could soar again. Concerns over rampaging inflation, a fresh surge in Covid-19 infection rates, and a declining US dollar could all push prices of these safe-haven commodities higher again.
But this isn’t the only reason why I’m optimistic. Signs are also emerging that physical demand for gold in the world’s two biggest bullion markets of China and India is ballooning.
All this plays into the hands of FTSE 100 gold and silver digger Fresnillo (LSE: FRES) and its profits column. Buying UK mining shares can be risky business as production and exploration problems can cause share prices to slump. But all things considered, I still think this Mexican mining ace remains a great buy today.
A top penny stock
I think penny stock N Brown (LSE: BWNG), which changes hands at 68p per share, is a perfect UK share for these times. Firstly, the company sells clothing with plus-size and older customers in mind. This provides exceptional sales opportunities as waistlines get bigger and Britain’s population ages.
Secondly, online sales growth is outstripping the rate at which bricks-and-mortar revenues are growing. This is something N Brown’s switch to an etail-only model will benefit from. And finally, this UK retail share’s clothing lines are positioned at the value end of the market. Therefore the firm can expect sales to be resilient even if the domestic economy struggles.
Remember though, fashion trends move fast and clothing companies don’t always get it right. A poor reception to N Brown’s products by consumers could seriously derail profit projections.
A FTSE 100 dividend hero
I’m also considering adding Aviva (LSE: AV) to my ISA. I like the steps the FTSE 100 firm’s taken to exit non-core foreign markets and focus on its UK, Irish and Canadian operations. The drive has seen it exit Poland and Italy last month, and more action could be on the horizon to boost its balance sheet and create a leaner earnings-producing machine.
It’s true that life insurers operate in an unpredictable regulatory environment, changes to which can severely hurt future earnings. But I still think Aviva’s low share price makes it worthy of serious attention today. The FTSE 100 firm trades on a P/E ratio of 9 times for 2021 and it boasts a 6% dividend yield.
I also have my eye on UK penny stock Kanabo Group (which trades at 23p per share) right now. Cannabis stocks like this are hot property right now as the use of the drug for medical applications booms. It’s possible therefore that demand for Kanabo’s medical-grade VapePod vaporiser will balloon on the back of this.
The business has the patented technology, sure, but remember the industry is highly regulated. Consequently any further law changes could blow the company’s growth outlook to smithereens.
Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Fresnillo. 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.