The Motley Fool

ISA investing: 3 of the best penny stocks to buy now

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

The letters ISA (Individual Savings Account) on dice on stacks of gold coins on a white background.
Image source: Getty Images

I’m hunting for the best low-cost UK shares to buy for my Stocks and Shares ISA. Here are three top penny stocks that have grabbed my attention.

A rock-solid penny stock

Science in Sport (LSE: SIS) is a UK share which put in a remarkably resilient performance last year. Despite the mass closures of gyms and fitness centres the protein-powder-and-nutritional-products manufacturer only endured a fractional sales decline during pandemic-hit 2020.

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

According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…

And if you click here we’ll show you something that could be key to unlocking 5G’s full potential...

Strong internet sales have helped the penny stock impress over the past 12 months. And Science in Sport is spending heavily in marketing and its platforms to make the most of the e-commerce explosion moving forwards. Online sales at the business leapt 39% year-on-year in 2020.

I think demand for Science in Sport’s goods will keep growing as people try to eat healthier and exercise more often. And the company’s investing in manufacturing and its supply chain to drive profits growth. I’d buy it for my ISA despite the fierce competition that it faces from the likes of Maximuscle.

The green machine

Renewi (LSE: RWI) is a low-cost UK share I’m backing to perform brilliantly this decade. The Covid-19 crisis has exacerbated existing concerns over sustainability and the impact of humans on the environment. It’s a theme this penny stock — which converts large amounts of the waste it receives into products or energy — is well-placed to exploit.

A pile of British one penny coins on a white background.

Demand for its services from commercial customers has only taken a slight whack despite the public health emergency. This has prompted Renewi to upgrade its profits guidance several times over the past year. And I expect the small-cap to get busier and busier as recycling becomes ever more important.

It’s true that changing legislation in its North American and European marketplaces could hit the penny stock’s earnings hard. But at current prices, I still think Renewi’s shares represent a great buy. Today, the business trades on a forward PEG ratio of just 0.1. A reading below 1 suggests a stock could be trading below value.

An electrifying ISA buy

Pulling raw materials out of the ground is notoriously difficult and extremely expensive. And this means UK shares like Bushveld Minerals (LSE: BMN) can suffer sudden and severe profits trouble. This particular penny stock is a major vanadium producer which it then uses to manufacture components for vanadium redox flow batteries (or VRFBs).

Despite these risks, I think Bushveld is a company that could deliver exceptional profits growth over the medium-to-long term. Green energy sources like solar and wind are exceptionally unpredictable, which means that hardware to store energy when conditions are favourable is essential. And with renewables rising in popularity sales of VRFBs are soaring. Meanwhile, rising energy costs mean individuals and businesses are spending more on the sort of products Bushveld manufactures too.

The experts at Valuates Reports think the VRFB market will be worth $6.2bn by 2026, up from $625.4m in 2019. It’s an upward trend that could give Bushveld Minerals explosive profits and make ISA investors like me excellent returns.

“This Stock Could Be Like Buying Amazon in 1997”

I'm sure you'll agree that's quite the statement from Motley Fool Co-Founder Tom Gardner.

But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.

What's more, we firmly believe there's still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.

And right now, we're giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool.

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

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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.

So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee.

Simply click below to discover how you can take advantage of this.