The deadline for the current Stocks and Shares ISA year is 5 April. As a result, it’s only a week away. My annual allowance of £20k resets with the new year, but it means that any of the limit for this year I haven’t fully utilised will be lost. I don’t really have much spare cash to invest in the next week, but if I did then these are the FTSE 100 stocks I’d likely buy.
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Time to start building again
My ISA holdings are for the long term. As a result, I’m looking for stocks I feel could do well in coming years, not coming weeks. Barratt Developments (LSE:BDEV) is one such case. The stock’s up 6% over the past year.
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These modest gains help to hide a 38% drop over the past three years. The sharp rise in interest rates over this period, along with the cost-of-living crisis, have dampened demand from customers for new homes.
However, with inflation now at 3.4% and interest rate cuts likely in the summer, I think the homebuilder could bounce back over the course of 2024 and beyond. It’s in a strong position thanks to a recent all-share takeover of smaller rival Redrow. This should provide significant cost savings with pooled resources.
A more stable outlook
Another option is Auto Trader Group (LSE:AUTO). The stock’s up 18% over the past year, in part thanks to used car prices starting to fall.
If we rewind to 2021 and 2022, supply chain issues and pandemic-related problems meant it was very hard to get a new car. Therefore, used car prices actually rose. This made it harder for some to afford a car, alongside general higher living costs. This wasn’t good news for Auto Trader.
Yet the situation’s now changed. Even though some argue that lower prices will be bad for business, I disagree. In the half-year results released in November, revenue for the firm was up 12% versus the year prior.
Of course, if used car prices fall dramatically later this year, this would be a negative as sellers simply won’t list their vehicles. Yet in January, the Auto Trader CEO said he was seeing prices stabilise, so I see limited risk here.
Buying the dip
Finally, I’d look to add JD Sports Fashion (LSE:JD). Back in January, the stock tanked following a profit warning. It blamed milder weather and more cautious consumer spending.
I think the reaction was overdone, with the stock still down 30% over the past year. However, it actually jumped yesterday (28 March) following a better-than-expected trading update.
Elements such as the weather aren’t fundamentally a problem for the business. Further, consumer spending will pick up again in coming years as the economy moves out of the sluggish patch.
And let’s not forget the business is still due to post a full-year profit in the £915m-£935m region. We’re not talking about a loss-making firm that’s seriously in trouble.
Of course, the risk is that the UK economy underperforms for the rest of the year, further lowering sales for JD Sports.
I like all three stocks for long-term gains, and feel investors should consider them before the ISA deadline.
