Building up the value of my ISA is my main goal in investing, and that’s why I’m focusing on the prospects of Interserve plc (LON:IRV) (IRV.L), IQE plc (LON:IQE) (IQE.L), Royal Mail PLC (LON:RMG) (RMG.L) and Barratt Developments Plc (LON:BDEV) (BDEV.L). Are they worth adding to my ISA right now?
Interserve is a stock that I am tempted to buy at the moment. It seems to be delivering on its strategy of reducing costs and becoming more efficient, while its low valuation means there could be upside potential ahead.
However, with a highly-leveraged balance sheet, I feel it could be a relatively risky buy. Therefore, with trading conditions being tough, I’m content just to watch it for now.
Royal Mail’s results released yesterday showed that the company continues to perform well versus its strategy. Its GLS division in particular has been able to generate impressive levels of growth, while its parcels segment has also performed well.
With Royal Mail having a dividend yield of over 4%, it seems to offer good value for money. Further investment and cost avoidance could lead to a stronger business in the long run.
Barratt Developments could be a surprisingly strong performer over the medium term. The housebuilding industry may benefit from continued high demand, with SDLT relief and the Help to Buy scheme having the potential to boost industry performance.
Since Barratt’s share price appears to be relatively cheap at the moment, I feel it could have value appeal. With a PE ratio of 10, it seems to have a large margin of safety.
IQE’s PEG ratio of around 1 suggests to me that it could offer good value for money. The company has been able to put in place what seems to be a solid growth strategy, and this could lead to stronger operational and financial performance in the long run.
Although not the cheapest stock in the TMT industry, IQE seems to have a large margin of safety. While potentially volatile, it seems to offer a strong growth outlook at a reasonable price.