Stock markets are uncertain again and the FTSE 100 index closed lower by 1.1% yesterday. On its own, a single day’s decline is not necessarily a big deal, but it does reflect ongoing nervousness among investors. 

How I’m investing via my Stocks and Shares ISA now

So when I think of my Stocks and Shares ISA investments for the remainder of the year, or even the next tax year, I have one idea in mind. My focus will now be on dependable, long-term FTSE 100 investments. I have already invested in stocks that are either cyclical in nature or are recovery plays. These stocks should be capable of giving me great returns during good times, but they are equally likely to falter during bad times. And since we are still in an uncertain period, I would now like to shift my attention towards stocks that have a history of long-term returns. 

As such, I have zoomed in on two FTSE 100 stocks that I believe could be good to hold in the long term. And they could also balance out the ongoing fluctuations in my current investment portfolio. Since they have given good returns over time, I reckon that the Stocks and Shares ISA is a good wrapper for them, because it gives me tax relief on capital gains. 

2 FTSE 100 stocks I like

The first of my picks is the industrial equipment rental company Ashtead. A lot of its business comes from construction, which is a cyclical sector. In fact, the latest numbers on the UK economy show that the construction industry actually shrank in October from the month before. 

But I still like the stock. This is because majority of its business is derived from the US, which has a huge infrastructure plan in place. A boom in the industry could keep demand for industrial equipment rental strong. Also, its long-term share price chart is encouraging. Over the past decade, it has been more on the rise than not. It has been growing and has given investors some rich returns. Its latest results are also encouraging and suggest that the future looks bright. 

I also like speciality chemicals manufacturer Croda International. It works with a variety of sectors ranging from personal care to industrial chemicals and life sciences. This makes it somewhat slowdown-proof, I feel. And its results show that as well. It has been doing quite well, and there is no indicator I can see that says the future will be different. 

The downside

It is quite pricey though, with a price-to-earnings (P/E) ratio of 58 times, far more than Ashtead (which is at 28 times). Also, it goes without saying, that the future could look very different from the past. This is especially so, if the virus situation gets worse, Ashtead in particular might take a hit. But even Croda International might not come out completely unscathed by, say, another round of lockdowns. 

My takeaway

I would not give into these fears though. In fact I might just invest the entire £20k allowance for the next tax year in my Stocks and Shares ISA in these two stocks.

Manika Premsingh has no position in any of the shares mentioned. The Motley Fool UK has recommended Croda International. 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.

The Entain (LSE: ENT) share price has been on a bit of a wild ride of late. The stock is up nearly 50% over one year, which is an excellent result for shareholders. But this does mask the volatility that started in September. At the time, the share price rocketed by 24% in as little as two days when DraftKings showed an interest in acquiring the company. Since then though, the stock has plunged almost 34%.

So, what’s gone wrong? And where will the Entain share price go next? Let’s take a look.

The Entain share price volatility

As mentioned, the stock rallied in September when Entain said it had received interest from DraftKings about it potentially acquiring the company. The share price before the announcement was 1,960p, but there was no indication at that point about the price that DraftKings might be willing to pay to acquire Entain.

On the following day, Entain said that DraftKings proposed an offer of 2,800p per share. This represented a premium of 46.2% to the share price before speculation around the acquisition began. However, a little over a month later, DraftKings said it no longer intended to make an offer to buy the company.

The stock has almost been in freefall since this speculation. As I write today, the share price is 1,572p, so that’s far below the initial offer of 2,800p from DraftKings.

This says to me that there might be value here, and that the Entain share price might now be in bargain territory.

The Entain bull case

Entain is a sports betting and gaming company and owns brands such as Coral and Ladbrokes, among many others. The company is growing significantly online, and recorded its 23rd consecutive quarter of double-digit growth online in the period 30 September. I expect this to continue in the months ahead, and for the US to be a key growth market going forward. This is due to the legalising of sports betting in the country after a Supreme Court ruling in 2018.

Entain has a joint-venture with MGM Resorts named BetMGM, which is aiming to be a leader in the sports betting market in the US. As it stands, BetMGM has a 23% market share of the US sports betting and iGaming sector.

City analysts are expecting a huge 350% growth rate in profit before tax (PBT) this year. In 2022, PBT is forecast to grow by a still impressive 54%. The forward price-to-earnings ratio is 18 for 2022, which I consider reasonably valued taking into account the growth expectations for the company.

Risks to consider

Even though the US has legalised sports betting, the sector is always open to tighter regulation. This is something to keep in mind with Entain as it operates in global markets, including the UK. Sports betting is also a competitive market, with companies like DrafKings in the US, and Flutter Entertainment in the UK.

Nevertheless, I think Entain looks to be a good opportunity here. DraftKings initially valued the company at 2,800p, which suggests there’s significant upside in the Entain share price. I’m considering the stock for my portfolio.

Dan Appleby has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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.

At yesterday’s close, the FTSE 100 index was down by less than 1% compared to Friday’s close. This can be chalked up to the fluctuations of any average trading day. But it was a far from routine day for travel stocks. The two biggest losers were International Consolidated Airlines Group (LSE: IAG) and Rolls-Royce (LSE: RR).They were down by 5.1% and 4.8%, respectively. 

Omicron variant’s shadow hangs over travel stocks

Much as I would like to think of this as a random occurrence, I doubt if that is so. I think this is the Omicron variant’s shadow hanging over them. On 25 November, the threat of the latest variant became apparent as direct flights from six African countries were banned. Since then, these stocks have suffered disproportionately. 

The IAG share price lost more than 17% of its value (although it’s up almost 11% in a year), while Rolls-Royce stock was down by almost 15% (and down 1.5% in a year). By contrast, the FTSE 100 index showed a smart recovery recently after an initial wobble. It even rose above the levels last seen at the end of November. And as of the last close, it was down by only 1.1% since 25 November.

At the present time, IAG and Rolls-Royce are trading not that much higher than penny stocks. IAG was at 130p and Rolls-Royce at 117p  at Monday’s close. And it is quite possible that an even bigger dip is in store. The first Omicron variant related death has been reported. Were I feeling adventurous as an investor, I would be tempted to throw my hat in the travel ring. Or throw another hat, I should say, because I have already bought IAG stock. 

Would I buy these FTSE 100 stocks?

But there is such a thing as investing fatigue as I am beginning to realise, when it comes to focusing on recovery shares. Travel and travel-related stocks have had it so bad for so long, I am starting to doubt if they will be able to get their act together any time in the near future. Consider this. It has been almost two years since Covid-19 first made itself known and around one year and nine months before the seriousness of the situation really started becoming apparent. Two years of relatively limited business has taken a toll on these companies’ finances. 

I would hold out some hope for the future, but the situation still looks uncertain. It could, of course, happen that there is a rapid turnaround from this point onwards. The variant is known to be milder than some others, like Delta. And a lot of people have been double vaccinated already, even if they have not received a booster shot yet. 

My assessment

But realistically speaking, this optimistic scenario is unlikely. I will watch the situation unfold and only then decide whether to buy either more of IAG or any of Rolls-Royce. In other words, it might not be game over for them, but I am not willing to buy them right now. I would much rather focus on more promising FTSE 100 stocks.

Manika Premsingh owns shares of International Consolidated Airlines Group. The Motley Fool UK has no position in any of the shares mentioned. 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.

Small-cap stock Joules (LSE: JOUL) fell by over 20% in early trading on Tuesday. The drop was triggered when the fashion retailer warned that profits would be lower than expected this year. Joules’ share price has now fallen by 50% from this summer’s peak, although it’s still up by 5% over the last year.

I’ve been digging into today’s update and crunching the numbers. I reckon this successful retail stock might be starting to look cheap at current levels. Should I add Joules shares to my Stocks and Shares ISA?

Sales rise by 35%

Like most of the UK retail market, Joules has suffered from supply chain problems over the last six months. Despite this, sales rose by 35% to £128m during the six months to 28 November.

The gains were driven by rising store sales as well as online growth. According to the company, in-store sales were only 3% lower than during the same period before the pandemic. This gives me confidence that Joules’ shop portfolio is still performing well, despite the general trend towards shopping online.

The only real disappointment is that supply chain problems have caused delays in online deliveries. Performance during November — including Black Friday — was below expectations.

Will Joules’ profits rise or fall this year?

A profit warning is never good news. But the picture at Joules seems to be better than I thought it might be.

According to the company, adjusted pre-tax profit for the current financial year is now expected to be between £9m and £12m.

This is a wide range, which suggests there’s still a lot of uncertainty. But even at the bottom end, £9m would still be 50% ahead of last year’s pre-tax profit of £6.1m.

Unfortunately, City analysts had even higher expectations for this year. Consensus forecasts before today were targeting a pre-tax profit of £15m this year. That seems unlikely now.

Should I buy this small-cap stock today?

Since its flotation in 2016, Joules’ annual sales have risen from £131m to around £200m. I’ve been impressed by the company’s performance and its ability to keep growing. The company’s country lifestyle vibe seems to resonate well with shoppers. Profit margins look quite respectable to me.

Another thing I like about this business is that founder Tom Joule still owns nearly 22% of the stock and sits on the board. I reckon this should ensure the company is run with shareholders in mind.

The main risk I can see after today’s profit warning is that the group’s recovery will take longer than expected. The combined impact of the pandemic and supply chain issues is hard to predict.

I think the worst is probably over, but I can’t be sure of this. In my experience, the first profit warning is often the start of a company’s problems, not the end of them.

I estimate that after today’s slump, Joules shares could be trading on around 17 times 2022 forecast earnings. At this level, I think the stock could be quite reasonably priced, if management can get growth back on track in 2022/23.

I’m not going to buy Joules today. But if the shares fall much lower, I may consider adding the stock to my portfolio.

Roland Head has no position in any of the shares mentioned. The Motley Fool UK has recommended Joules 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.

Recently, I have been looking for UK shares to buy today for my portfolio. I have been concentrating on a couple of sectors, which I believe are perfectly positioned to benefit from significant themes in the UK economy. 

These themes include the growing e-commerce industry and housebuilding industry. These sectors are currently experiencing robust growth, driven by rising consumer demand for e-commerce and new properties. 

Here are four companies in the two different sectors that I would buy for my portfolio today. 

Shares to buy for e-commerce

Rather than focusing on individual retailers that may have an edge in the e-commerce sector, I will focus on infrastructure owners. The way I see it, not every company will succeed in the retail market, but every retailer will need a warehouse to fulfil orders. 

With that in mind, I would buy Tritax Big Box REIT. This company focuses on so-called big box retail facilities, which are colossal fulfilment centres used by giant e-commerce retailers. 

Along the same lines, I think FTSE 100 real estate investment trust SEGRO also deserves a place in my portfolio. Like Tritax, the company owns a portfolio of modern warehousing and light industrial property across the UK and Europe. It is larger than Tritax and therefore has more financial firepower to push ahead with new deals. 

These companies benefit from the fact that internet giants do not want to build their own infrastructure, which can be costly and add unnecessary risks. Instead, they lease these properties from corporations like Tritax and SEGRO on long-term contracts that generally have inflation-linked terms. 

This gives these contracts a defensive nature in uncertain times. 

The one challenge these businesses could face is over construction. Money is flooding into the warehouse sector, and there is a chance the market could become oversupplied. This would put pressure on rates and could cause property values to fall. 

UK shares for property 

UK house prices have jumped over the past two years. A lack of supply and rising demand have pushed prices higher. This is good news for homebuilders. These firms are rushing to keep up with increasing demand. 

I think Berkeley Group is one of the best UK shares to buy today to invest in this theme. The company focuses on the London market and has a strong balance sheet. It plans to return substantial sums to investors over the next few years with dividends and share repurchases.

While Berkeley’s output is relatively modest, with less than 2,000 homes produced in the first half, Bellway produces more than 10,000 homes a year.

Its mass-market approach is the reason why I would also buy this stock alongside Berkeley. I believe this method of buying a builder at the high and low end of the market is the best way to build exposure to the homebuilding sector overall. 

The most considerable risk facing these companies is that of a housing market slowdown. This could hit property prices and force corporations to decrease output to match demand, reducing overall profitability.

Rupert Hargreaves has no position in any of the shares mentioned. The Motley Fool UK has recommended Tritax Big Box REIT. 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.

I think the Legal & General (LSE: LGEN) share price is all too often overlooked by investors. The life insurance company is hardly the most exciting business, although it is one of the oldest corporations in the FTSE 100. Against high-flying tech stocks, the company looks like a throwback to a different time. 

But I think it would be silly to disregard this enterprise simply because it is not as exciting as its peers. Life insurance and pension management is a vast and growing business. As well as these business lines, the company is also one of the largest asset managers in Europe, a significant private equity investor, and has a growing homebuilding division in the UK. 

Legal & General share price opportunity 

Managing pension assets is not a business many firms can (or want to) get into. It is a highly regulated industry, which requires a lot of capital and oversight from regulators. 

On top of these challenges, companies have to gain consumers’ trust. I do not want to entrust my pension savings to a business with no track record. Legal has been a pension manager for ell over 100 years.

While past performance should never be used to guide future potential, this track record certainly gives me confidence that the company knows what it is doing. 

Moreover, the corporation manages more than £1trn of assets for clients across the world. And this asset base is growing every day. It provides a solid backstop to support the group’s operations. The funding also gives me confidence that the corporation has the financial resources to manage any situation that presents itself.

This significant asset base also provides economies of scale, further reinforcing the company’s competitive advantage and position in the UK pension market. These are the primary reasons I think the company is a great business.

Valuation opportunity 

The Legal & General share price also currently looks attractive from a valuation perspective. Indeed, the stock is trading at a forward price-to-earnings (P/E) multiple of 8.8. Further, it offers a prospective dividend yield of 6.4%. This is one of the highest dividend yields in the FTSE 100. 

Unfortunately, the payout is by no means guaranteed. As the firm manages the life savings of tens of thousands of consumers, regulators keep a close eye on its dividend. 

If they think the firm could be at risk of financial stress, regulators will almost certainly force it to cut the payout. Policymakers could also introduce additional rules and regulations, which may increase group costs and impact the company’s profitability. 

Despite these potential challenges, I would be happy to buy the stock for my portfolio today. Considering its competitive advantages and current valuation, I think the Legal & General share price looks incredibly attractive at current levels.

Rupert Hargreaves has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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.