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.
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.
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.
