A battered UK stock and an ETF I’m eyeing up for my ISA in September

I’m on the hunt for beaten-down UK shares and funds to buy for my Stocks and Shares ISA. Here are two of my favourites this month.

| 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.

Image source: Getty Images

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.

I’m hoping to have cash to invest in my Stocks and Shares ISA later this month. Here are a couple of shrewd investments I’ve added to my list of possible buys.

The stock

Created with Highcharts 11.4.3Clarkson Plc PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

Shipbroker Clarkson (LSE:CKN) endured a miserable August as panicked investors headed for the exits. It fell by double-digit percentages after a frosty reception to half-year financials at the start of the month.

Could the sell-off be signs of an overreaction by the market however? I think so. Revenues and underlying pre-tax profit both slipped 3% in the six months to June. However, this needs to be seen in the context of the ultra-strong comparatives of a year earlier.

Should you invest £1,000 in Dfs Furniture Plc 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 Dfs Furniture Plc made the list?

See the 6 stocks

Encouragingly, Clarkson kept its full-year forecasts unchanged.

One of the main things I like about the FTSE 250 firm is its ultra-progressive dividend policy. It’s raised shareholder payouts for 21 straight years.

And thanks to its strong cash generation, it raised the interim dividend again — by 7% — despite the aforementioned profits drop.

Investing in cyclical companies like this can be a bumpy ride at times. As a supplier of ship financing, logistics services and maritime research, earnings can take a smack during economic downturns.

However, from a long-term perspective, I think the future’s extremely bright here. Demand for shipping will steadily rise in line with the growth in international trade. Around four-fifths of goods are transported via sea.

And with its strong brand name and presence on six continents, Clarkson’s in great shape to win lots of business looking ahead.

The ETF

Created with Highcharts 11.4.3Global X Funds - Global X Copper Miners ETF PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

Commodity price volatility’s only one common risk that mining companies have to endure. Problems at the exploration, project development and production phases can be common. And these can take a big bite out of earnings.

Investors can reduce, but not eliminate, this risk by purchasing an ETF that holds a variety of different miners though. One such fund on my radar today is the Global X Copper Miners ETF (NYSEMKT:COPX).

The fund invests in dedicated copper miners alongside more diversified operators. The 40-strong list includes leading producers like First Quantum Minerals, BHP, Glencore and Antofagasta.

But why buy the ETF now? With copper prices falling sharply in recent months, so has the value of the fund. It now trades on an historically low P/E ratio of 13.6 times.

I think this could represent an attractive dip-buying opportunity for long-term investors like me to consider. Copper demand is poised for strong growth thanks the growing green economy and continued urbanisation.

Indeed, Bloomberg analysts think demand will rise to 43m metric tonnes by 2050, up from the 26m recorded in 2022.

This Global X fund has delivered an attractive average annual return of 19% over the past five years. I think it could be a great way to target big returns from the copper boom.

Passive income stocks: our picks

Do you like the idea of dividend income?

The prospect of investing in a company just once, then sitting back and watching as it potentially pays a dividend out over and over?

If you’re excited by the thought of regular passive income payments, as well as the potential for significant growth on your initial investment…

Then we think you’ll want to see this report inside Motley Fool Share Advisor — ‘5 Essential Stocks For Passive Income Seekers’.

What’s more, today we’re giving away one of these stock picks, absolutely free!

Get your free passive income stock pick

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 Clarkson 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.

More on Investing Articles

Investing Articles

If an investor put £10k into Greggs shares one month ago, here’s what they’d have today

Greggs shares have had a tough year but Harvey Jones says they're notably cheaper as a result, while the dividend…

Read more »

Young brown woman delighted with what she sees on her screen
Investing Articles

The Phoenix share price jumps 7.5% on today’s results, but still yields a stunning 9.4%!

Harvey Jones put his faith in the Phoenix share price and this morning was rewarded with a 7.5% jump on…

Read more »

Investing Articles

What’s been going on with the Barclays share price?

The rising Barclays share price reflects confidence in management’s strategy to improve business performance and enhance shareholder returns.

Read more »

Investing Articles

Prediction: in 1 year, the IAG share price could reach as high as…

The IAG share price has almost doubled in the last 12 months, but can this momentum continue in 2025? Zaven…

Read more »

Investing Articles

Prediction: in 12 months, here’s where the Glencore share price could be…

The performance of Glencore’s share price has been lacklustre, to say the least. But could all that change over the…

Read more »

Investing Articles

See how much an investor needs in their ISA to earn a £499 monthly second income

Harvey Jones crunches the numbers to show how it's possible to build a long-term second income by investing in a…

Read more »

Investing Articles

I’m considering buying more of this struggling FTSE 100 stock

This FTSE 100 stock hasn't exactly set our writer's portfolio on fire during the time he's owned it. But Paul…

Read more »

a couple embrace in front of their new home
Investing Articles

Prediction: in 1 year, the Taylor Wimpey share price could reach…

Can Britain’s reformed planning scheme send the Taylor Wimpey share price into overdrive? Here’s what the latest analyst forecasts predict.

Read more »