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3 UK shares I’d pick now for my ISA

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Market turbulence can offer a good opportunity to find bargains among UK shares.

With a long-term investment focus, I don’t worry too much about market timing. Even if I buy a share today and it continues to fall next week, I hope that quality will out over years to come.

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I used my ISA as a long-term investment vehicle and here are three shares I would consider adding to it today.

On the buses

Bus and coach operator Stagecoach (LSE: SGC) has been falling in the past few days. But with a 40% share price increase over the past year, I think the fall could be a buying opportunity.

One of the triggers for the negative sentiment towards this UK share was news that the co-founders would sell down their stake. However, this is planned to take a decade. So I don’t see it as showing a lack of confidence in the company’s prospects. It strikes me more as a form of portfolio diversification, something I do myself.

Stagecoach is set benefit as people travel mode domestically again, for both work and leisure. The company is an experienced operator that has little or no competition on many routes. It has been insulated from the worst of the pandemic thanks to government subsidies to the transport sector. Unlike loans, those do not need to be repaid.

But there are risks for Stagecoach shares, including lower revenue if many former commuters continue to work from home even just some of the time.

High street UK shares

Discount retailer B&M European Value (LSE: BME) has rewarded shareholders handsomely in the past year.

It saw a 56% increase in its share price over the past year. B&M also paid out a special dividend of 20p in January, on top of a 25p special dividend just months earlier. The company also grew its ordinary dividends by 24% last year.

Can the success continue? One risk a lot of investors see in B&M is that its lockdown sales surge is unsustainable now that other shops have all opened again.

But I like B&M as a pick for my ISA because I see a powerful growth story here that has already been building for many years. The retail formula is simple but successful. It has an excellent buying team and compelling customer proposition.

Niche product specialist

I’d also consider adding Victrex (LSE: VCT) to my ISA. It’s already up 14% since I wrote about the company a couple of months ago. But I see this as another long-term story amongst UK shares. The company’s specialisation in certain polymer materials makes it an obvious choice for many of its customers. When selling into industries such as aeronautics and automobiles, quality is critical. That gives the UK manufacturer pricing power. It can compete successfully with cheaper products made in lower wage markets.

The company sells to businesses, so it is unsurprising that the name is unfamiliar to many investors. But it enjoys a strong reputation in its specialist industrial field.

As a company that exports almost all of its production, a key risk for Victrex is any supply chain disruption. For example, any trade disputes could hurt both revenue and profit.

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christopherruane owns shares of Stagecoach. The Motley Fool UK has recommended B&M European Value and Victrex. 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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