These low-cost UK shares all cost £1 or less to buy right now. Here’s why I’d buy these penny stocks for my Stocks and Shares ISA.
Building for the future
A bright outlook for the European construction market is encouraging me to buy SIG for my shares portfolio today. This penny stock sells construction products in the UK, France, Germany, Ireland, Poland and the Benelux countries. And like-for-like sales here jumped 33% between January and June as people returned to work following last year’s Covid-19 outbreak. Things look good for the roofing and insulation specialist as housebuilding should remain strong and government investment in infrastructure hots up. Though be warned that a serious worsening of the Covid-19 crisis could put paid to SIG’s recent recovery.
The clean machine
I wouldn’t say that household goods manufacturer McBride doesn’t need to fear the ongoing public health emergency. Like countless other UK shares, this small-cap could face significant supply chain problems owing to employee absences and Covid-19 travel restrictions. But then again demand for the stock’s disinfectants, detergents and surface cleaners will likely remain rock solid as the pandemic rolls on.
I wouldn’t just buy McBride shares for the short haul though. Demand for cheaper, own-brand products remains locked on a long-term uptrend, as the success of discounters Aldi and Lidl over the past decade shows. This UK share is well placed to benefit from the rising popularity of value with consumers.
Going green
Responsible investing is becoming more and more important to stock investors all over the globe. One top ‘green’ UK share I myself am thinking of buying today is NextEnergy Solar Fund. This particular stock has invested in more than 90 solar farms in the UK and Italy. And in its last fiscal year it generated around 738 gigawatt hours (GWh) of clean energy, another hefty year-on-year rise. I expect this figure to keep rising as the company builds its asset portfolio and countries take steps to tackle their carbon emissions. Though be warned that solar energy can be expensive to produce, which can weigh on shareholder returns.
Another top responsible penny stock
I’m also thinking of buying Kanabo Group shares to ride the environmental, social and governance (or ESG) investing train. This is because its cannabis-derived healthcare products are designed to help people suffering a range of physical and psychological ailments. The penny stock thinks it will make big bucks from the sale of its medical-grade VapePod vaporiser as the use of the drug for medicinal purposes takes off. It has also just signed a deal to acquire the European assets of cannabis producer Materia to speed up profits growth. Remember that cannabis stocks operate in a highly-regulated environment, however. So law changes later down the line could significantly harm Kanabo’s earnings.