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It's natural at this time of year to think about UK stocks that could bolster my stocks and Shares ISA. Two candidates I like are Ashtead Group (LSE: AHT) and First class food (LSE:PFD).
Here's why I'd love to buy some shares of both the next time I have some cash to invest.
Ashtead Group
Ashtead construction hire business is a solid company. FTSE 100 stocks that have a good track record as well as bright future prospects.
The shares are up 22% in a 12-month period from 4,630p this time last year to current levels of 5,658p.
To contextualize how well the business has done in the past, just 20 years ago it used to be a penny stock. It now resides on the main UK index, with a global presence and good market position.
From a fundamental point of view, stocks are neither exactly cheap nor overly expensive in my opinion. They are currently trading at a P/E ratio of 18. I'm happy to pay a fair price for a good company. In addition, there is a dividend yield of 1.5%. I estimate this could grow in line with the business.
Growth could come from its position in the US market, where a potentially lucrative $1 trillion infrastructure bill was recently passed. This could result in increased business performance and profitability.
Continuing with the company's aspirations in the US market, a stagnant economy could present problems. Demand for equipment has cooled in recent months as projects have slowed. If this continues, performance and profitability could be adversely affected. I'll keep an eye on this in the future.
First class food
The company behind popular brands like Hovis, Lloyds Grossman sauces, Mr Kiplingand Branstonto name a few, it looks like a good stock to buy and hold.
Premier Foods shares have had a good 12 months, rising 21%. This time last year they were trading at 121p, compared to current levels of 147p.
From a bullish perspective, the stock appears to be good value right now with a forward price-to-earnings ratio of just 10.9 times. Additionally, a dividend yield of just under 1% could increase in line with business growth.
This growth is due to its international expansion efforts, which have been intensifying and bearing fruit. Foreign sales increased 11% in the last quarter, compared to the previous quarter.
Furthermore, the overall performance of the food business of 20 strong brands has been positive. The latest quarter showed a 14.4% increase in sales compared to the same period last year. Food is a defensive business, as it is a basic need for everyone, regardless of the economic outlook.
However, from a bearish perspective, the economic outlook may affect the brands consumers choose to purchase. Premier Foods brands can be considered premium. The recent cost of living crisis has put a spotlight on unbranded essentials and helped boost the market share of supermarket disruptors Aldi and Lidl. Discount retailers like B&M They have also benefited. There is a possibility that a change in consumer habits away from premium branded products could harm Premier's performance and returns.
