ISA deadline! 2 penny stocks I’d buy right now

I’m looking for some late share buys before tonight’s Stocks and Shares ISA deadline. Here are two top penny stocks I’m eyeing closely.

| More on:

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.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

Investors haven’t got long to max out this year’s Stocks and Shares ISA allowance. Any part of my ISA allowance for the 2021/22 tax year can’t be rolled over to the new tax year. I have to use it or lose it, as they say.

I don’t actually have to buy UK shares straight away though. Just putting my cash into my ISA before the end of the day is enough to utilise this year’s allowance.

However, I don’t see any reason for me to wait. I’m looking for the best penny stocks to buy before the markets close today.

There are plenty of quality penny stocks out there that I think are too good to miss. Here are a couple I think could deliver excellent returns.

Back of the net

The cost of living crisis is a danger to all retail stocks as consumer spending power falls. Fishing equipment specialist Angling Direct (LSE: ANG) is no exception. Though I’d argue that niche retailers like this are better placed to ride out the storm.

Angling is one of those passions for which spending tends to remain resilient during upturns and downturns. In fact I’m considering buying this penny stock given the pace at which the hobby is growing.

The number of anglers in the UK ballooned during Covid-19 lockdowns. Recent data from Statista suggests that there’s plenty more upside to come, too. It believes the European fishing equipment market will grow at an annualised rate of 6% to 2026 and be worth $2.9bn by then.

Angling Direct’s sales rose an extra 7.2% in the financial year to January 2022, continuing its recent strong momentum. And last month the business opened a distribution hub in The Netherlands to sell products across the European Union.

Another top penny stock

Sellers of expensive goods like car retailer Pendragon (LSE: PDG) are also in danger as inflationary pressures intensify. However, this is not the only danger as auto production problems persist.

Today the Society of Motor Manufacturers (SMMT) announced that new car registrations slumped 14.3% year-on-year in March. This was the worst result since 1998 and reflected the impact of “ongoing supply chain shortages” on car production.

The parts shortage issue has been exacerbated by the Covid-19 resurgence in China and the war in Ukraine. But despite these dangers, I’m still thinking of buying Pendragon shares. I think profits here could soar over the longer term as electric vehicle sales take off.

Riding the dragon

Even with that overall decline in March, the SMMT said that sales of these low-carbon vehicles exploded in March. Battery-powered vehicles for example soared 78.3% last month, with sales of 39,315 units representing an all-time monthly high. Tese figures illustrate the massive growth potential of this car class.

I for one expect EV sales to keep rising strongly as concerns over the climate worsen and charging infrastructure improves. Today Pendragon trades on a forward P/E ratio of just 9.2 times. I think this makes the penny stock too cheap for me to miss.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

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

More on Investing Articles

The flag of the United States of America flying in front of the Capitol building
Investing Articles

2 UK shares that could rise if Trump wins the Presidential election

These UK shares are among the FTSE 100's most popular stocks. And they could rise in value if Donald Trump…

Read more »

Closeup ruffled American flag representing US stocks and shares
Investing Articles

2 UK stocks that could rise if Harris wins the Presidential election

Royston Wild believes these UK stocks could receive a bump if Kalama Harris wins the Presidency, giving their share prices…

Read more »

Investing Articles

After a 96% plunge, is buying more Aston Martin shares throwing good money after bad?

Just two weeks after buying Aston Martin shares Harvey Jones found himself nursing a painful loss. Yet after recent news…

Read more »

Investing Articles

After crashing 45% in October, should I buy this FTSE 250 share for my Stocks and Shares ISA?

Roland Head explains why he’s tempted to add this risky FTSE 250 turnaround share to his Stocks and Shares ISA…

Read more »

Investing Articles

Could I use a stock market crash to turn £20k into half a mil in just over a decade?

A stock market crash might sound terrifying to some but it can also present a once-in-a-lifetime opportunity to accumulate generational…

Read more »

Investing Articles

Recently released: October’s small-cap stock recommendation [PREMIUM PICKS]

We believe the UK small-cap market offers a myriad of opportunities across a wide range of different businesses and industries.

Read more »

Investing Articles

Here’s how a Stocks and Shares ISA and Lifetime ISA could supercharge my wealth!

Individual Savings Accounts (ISAs) can help UK share investors take their earnings to the next level. And their importance is…

Read more »

A person holding onto a fan of twenty pound notes
Investing Articles

A high-yield dividend ETF and an investment trust to consider this November!

Investors wanting to boost their passive income could benefit from investigating these high-yield funds and trusts, says Royston Wild.

Read more »