2 top shares I’ve bought for my Stocks and Shares ISA in November

This writer reveals a pair of fast-growing businesses that he’s recently added to his Stocks and Shares ISA for the long term.

| More on:

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.

So far this month, I’ve added two companies to my Stocks and Shares ISA. One is an established FTSE 100 giant, while the other is a newer but surprisingly large Brazilian enterprise.

Bought at $14

First up is Nu Holdings (NYSE: NU), commonly known as Nubank. Despite being largely unknown in the West, this is Latin America’s biggest digital bank with a $75bn market cap.

In fact, it’s the largest online-only bank outside of China and is backed by Warren Buffett!

The share price is up around 90% year to date. And while some investors might baulk at a stock that’s already doing well, there’s a lot to like here, in my opinion.

For starters, the digital lender had 104.5m customers at the end of June. That’s up from 33.3m at the end of 2021 — an astonishing 214% increase. And it currently only operates in three countries — Brazil, Colombia, and Mexico — in a region with approximately 465m adults.

This eye-popping growth highlights how scalable the firm’s low-cost app is compared to bricks-and-mortar competitors. In Q2, revenue jumped 65% year on year to $2.8bn (on a constant-currency basis). Adjusted net income surged 138% to $563m.

Nubank continues to expand its ecosystem beyond savings, loans and insurance. Its Nu Shopping feature, which offers customers discounted access to hundreds of retail partners, is growing rapidly. And it’s just launched a mobile phone service (NuCel) in Brazil.

One risk here is increasing competition, especially from e-commerce and fintech giant MercadoLibre. Also, any sudden slowdown in growth or rise in non-performing loans, could spark a sell-off in the shares.

Looking ahead though, the company appears perfectly positioned to continue growing. According to Latin America Reports, seven in 10 people in the region are unbanked or underbanked. But over 80% now have mobile phones, so this is fertile ground for digital banking and e-commerce growth.

The stock is trading at 26 times forward earnings and five times next year’s sales. A premium yes, but attractive to me given the growth potential.

Bought at £98

The second firm is AstraZeneca (LSE: AZN), in which I recently bought more shares. This followed a 19% drop in the FTSE 100 stock in the space of three weeks.

The reason is China, where its president was detained by authorities last week. This appears related to a large insurance fraud investigation, but we don’t still know exact details.

China is the firm’s second-largest market, contributing 13% of revenue last year. Understandably, the pharma giant is taking these matters “very seriously“. There’s suddenly a lot of uncertainty here.

Looking past this, however, the business is thriving. Today (12 November), it reported that total revenue and core earnings per share (EPS) were up 21% and 27%, respectively, in the third quarter. Both figures beat analysts’ expectations.

CEO Pascal Soriot commented: “Growth looks set to continue through 2025, providing a solid foundation to deliver on our 2030 ambition.” That’s for $80bn in revenue by 2030, up from $45.8bn in 2023.

After this strong performance, Astra now sees high-teens percentage growth in full-year revenue and core EPS, up from a previous forecast of mid-teens growth at constant currency rates.

The stock is 20% cheaper than it was just one month ago. In my eyes, this appears to be a classic buy-the-dip opportunity for me. But only time will tell.

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.

Ben McPoland has positions in AstraZeneca Plc, MercadoLibre, and Nu Holdings. The Motley Fool UK has recommended AstraZeneca Plc, MercadoLibre, and Nu Holdings. 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

With a P/E ratio of just 10.5 is now a brilliant time to buy a cut-price FTSE 250 tracker?

Harvey Jones says a recent dip in the FTSE 250 leaves the index trading at bargain levels. One stock in…

Read more »

Warren Buffett at a Berkshire Hathaway AGM
Investing Articles

To build a passive income flow, I’d follow this Warren Buffett approach

Warren Buffett has set up passive income streams most people can only dream about. Our writer sees some practical lessons…

Read more »

Growth Shares

As the boohoo share price falls, could it become a penny stock in 2025?

Jon Smith outlines some of the recent problems involving the boohoo share price and considers if things could get even…

Read more »

Young Asian woman with head in hands at her desk
Investing Articles

Here are the worst-performing FTSE 100 shares over the last 5 years

These five FTSE 100 shares have been complete duds over the last half decade. But is there potential for a…

Read more »

Investing Articles

Nvidia stock has tripled this year! Can it keep rising?

Nvidia's latest sales update showed strong growth and the stock's been on a tear so far in 2024. So is…

Read more »

Investing Articles

The JD Sports Fashion share price has just plunged another 16%! Buy or sell?

Harvey Jones is reeling after another sharp drop in the JD Sports Fashion share price. Should he seize the chance…

Read more »

Person holding magnifying glass over important document, reading the small print
Investing Articles

This once-great FTSE 250 UK fashion retailer is down 47%, so is it time for me to buy?

A formerly iconic UK fashion brand, this FTSE 250 firm has fallen out of favour. But it has a new…

Read more »

Investing Articles

Nvidia share price dips despite strong Q3 results. What can we expect now?

Despite posting strong Q3 results after yesterday's market close, the Nvidia share price slipped 2.5% in aftermarket trading. Mark Hartley…

Read more »