April is fast approaching, and that means time is almost up for me to make the most of my Stocks and Shares ISA allowance. After all, who doesn’t love tax-free capital gains? With that in mind, let’s explore two FTSE 100 stocks I think are starting to look rather cheap, courtesy of the recent market sell-off.
Is this FTSE 100 stock the new king of streaming?
Most people instantly think Netflix or Amazon Prime when talking about streaming services. But as it turns out, ITV (LSE:ITV) is actually the biggest advertisement-funded streaming platform in the whole of Europe.
Looking at its latest full-year results, the group expanded its top-line by 24% after achieving record-breaking advertising income throughout 2021. And with pandemic-related disruptions almost out of the picture, underlying profits exploded by 46%, reaching £519m.
In my experience, seeing a FTSE 100 stock achieve such impressive growth is pretty rare. But it doesn’t come without risk. Management plans to spend £1.23bn on creating new content for the platform this year. Needless to say, that’s a pretty hefty investment with the potential to backfire if content production doesn’t satisfy the ever-changing landscape of consumer tastes.
But with a history of shrewd capital allocation, I think ITV is up for the task. And with the share price down nearly 40% in the last 12 months, I believe now could be an excellent buying opportunity to buy it for my Stocks and Shares ISA ahead of the looming deadline.
Investing in an army of robots
The last 12 months have been pretty tough for Ocado (LSE:OCDO). In fact, the FTSE 100 stock is down over 40%. But with the adoption of e-commerce going through the roof, the need for more efficient order fulfilment solutions is on the rise. And that’s why I’m considering this business for my Stocks and Shares ISA.
The firm is predominantly known for being an online grocery retailer. But that’s just one part of the enterprise. And not the one that management seems to be focusing on. Instead, all eyes are on its robotics division that provides warehouse automation solutions to drastically improve efficiency and cut costs.
That’s probably why forecasts estimate the warehouse automation market could double in the next five years, reaching as much as £22bn by 2026!
So far, Ocado has only captured only around 3% of this market opportunity, opening the door to substantial long-term growth potential. But it’s not the only company trying to capitalise on this technological shift. AutoStore is one of many competitors trying to steal market share. And if the FTSE 100 stock cannot maintain its technological advantage, its share price could continue to tumble.
However, given the potentially massive reward, this is a risk I’m personally willing to take to add it to my Stocks and Shares ISA.
Zaven Boyrazian has no position in any of the shares mentioned. The Motley Fool UK has recommended ITV and Ocado Group. 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.
