3 shares I’m buying for my Stocks and Shares ISA

A Stocks and Shares ISA is an incredibly powerful way of growing wealth. Here are the three stocks I’m buying for mine.

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As an investor, one of the most powerful tools I have is a Stocks and Shares ISA. With £20k of tax-free investing available annually, it’s possible to build some serious long-term wealth! I’ve been keeping cash ready for the right opportunity, but these three companies have me convinced.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

GigaCloud Technology

GigaCloud Technology (NASDAQ:GCT) is one of the stocks I’m most excited about at the moment. The company provides end-to-end e-commerce solutions for large parcel distribution. Not exactly an exciting sector, but the numbers speak for themselves. GigaCloud turned profitable this year, and with earnings expected to grow by 21% per year, this could be a tremendous opportunity.

Should you invest £1,000 in Abrdn right now?

When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets. And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Abrdn made the list?

See the 6 stocks

Created with Highcharts 11.4.3GigaCloud Technology PriceZoom1M3M6MYTD1Y5Y10YALL1 Aug 201920 Aug 2023Zoom ▾Jan '20Jul '20Jan '21Jul '21Jan '22Jul '22Jan '23Jul '2320202020202120212022202220232023www.fool.co.uk

An investment in GigaCloud, alongside many China-based companies, is not for the faint-hearted. With an average move of 13% per week, this is a volatile one. This can be attributed to macro-economic fears around investing in China, as well as supply chain issues. However, with such strong fundamentals, I’d expect the long-term outcome to be positive. The price-to-earnings (P/E) ratio is well below the average of the sector. By considering the future cash flow, a fair value of $430.85 is calculated. As a result, the shares could be as much as 98% undervalued!

Doximity

Doximity (NYSE:DOCS) operates a cloud-based digital platform for medical professionals in the US. The share price has tumbled in the last few years as user growth has slowed, and profit margins have reduced.

Created with Highcharts 11.4.3Doximity PriceZoom1M3M6MYTD1Y5Y10YALL1 Aug 201920 Aug 2023Zoom ▾Jan '20Jul '20Jan '21Jul '21Jan '22Jul '22Jan '23Jul '2320202020202120212022202220232023www.fool.co.uk

However, the company is now looking to be in bargain territory for my Stocks and Shares ISA. A discounted cash-flow calculation indicates Doximity may be as much as 49% undervalued. With earnings still growing at a healthy 19% per year, I like the look of this company for a long-term investment. At a P/E ratio of 37 times, it is far below the average of the medical software sector at 71 times. The company has no debt and strong fundamentals, which is ideal in a time of high interest rates and uncertainty. The shrinking profit margins will be a concern for many investors, but with over 80% of doctors in the US verified members of the platform, this looks to be a company with staying power.

Future

Future (LSE:FUTR) develops and distributes content for games, entertainment, and news in the US and UK. The share price has fallen by over 50% in the last year as investors were concerned about the company’s debt levels, and uncertain advertising revenues.

Created with Highcharts 11.4.3Future Plc PriceZoom1M3M6MYTD1Y5Y10YALL1 Aug 201920 Aug 2023Zoom ▾Jan '20Jul '20Jan '21Jul '21Jan '22Jul '22Jan '23Jul '2320202020202120212022202220232023www.fool.co.uk

Concerns about the near-term debt levels are valid, but looking long-term, the company seems to be in fairly good shape. The company’s P/E ratio of 8.1 times is well below the sector average of 11.1, albeit with lower growth. The expected growth rate of 8.1% won’t turn many heads, but I don’t mind steady growth if the company is undervalued over the long term. My interest peaks when looking at the discounted cash-flow calculation, indicating a potential 70% upside to the fair value of £26.35. With advertising looking likely to remain a lucrative and valid part of the market, I like the look of this company.

The plan

These companies all have terrific potential for my Stocks and Shares ISA, but they’re by no means a sure thing. I’m taking the appropriate steps to diversify across a range of asset classes, sectors, and risk profiles.

But what does the head of The Motley Fool’s investing team think?

Should you invest £1,000 in Abrdn right now?

When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Abrdn made the list?

See the 6 stocks

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.

Gordon Best has positions in Doximity, Future Plc, and GigaCloud Technology. The Motley Fool UK has recommended Doximity and Future Plc. 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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