2 exceptional FTSE 100 shares to buy for an ISA this year

Edward Sheldon has been looking for high-quality FTSE 100 shares to buy for his ISA. Here’s a look at two stocks he likes the look of right now.

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With cash to deploy in my ISA now that the annual deadline has passed, I’m keen to buy some stocks for my portfolio. I’d like to buy some high-quality FTSE 100 shares that have significant long-term growth potential.

Here, I’m going to highlight two FTSE 100 shares that strike me as good buys right now. I think these stocks could be great picks for my ISA this year.

A Warren-Buffett style Footsie stock

The first FTSE 100 stock I want to highlight is Experian (LSE: EXPN). It’s one of the world’s largest providers of credit data. Its data allows banks and other financial institutions to make better lending decisions.

Should you invest £1,000 in Experian Plc right now?

When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets. And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Experian Plc made the list?

See the 6 stocks

There are several reasons I see it as a great stock to buy. The first is that it’s a high-quality ‘Warren-Buffett-style’ company. Not only does it have a strong competitive advantage (a competitor can’t easily replicate its enormous data sets), but it’s also very profitable.

The second is that the company is shifting from simply selling data to data enhanced by decisioning tools. This should add value for customers. Highly-rated UK portfolio manager Nick Train, who owns the stock in some of his portfolios (and has been buying more shares recently), believes the decisioning tools will help drive substantial growth over the next decade.

One major risk here is that the stock could get caught up in another tech sell-off. I expect this year to be volatile for tech shares due to the fact that central banks are raising interest rates.

With the stock currently trading on a forward-looking P/E of around 28, however, I think the risk/reward proposition here is compelling.

It’s worth noting that analysts at Liberum just initiated coverage of the stock with a ‘buy’ rating and a price target of 3,700p – implying upside of about 25%.

One of the most profitable companies in the FTSE 100

The second FTSE 100 stock I want to discuss is Rightmove (LSE: RMV). It owns the UK’s largest property website.

Like Experian, Rightmove is a high-quality business. Today, it’s the leader in the UK property portal space by a wide margin (88% market share in 2021). This market dominance gives it a strong competitive advantage.

Meanwhile, the company is ridiculously profitable. Last year, the group generated a return on capital employed (ROCE) of 283%. That’s about 20 times the average FTSE 100 ROCE.

While Rightmove experienced some challenges during the pandemic, it has made a good recovery. For 2021, revenue came in at £305m, up 48% on 2020 and up 5% on 2019. Looking ahead, analysts expect the group to generate revenue of £330m for 2022.

Of course, if rising interest rates were to cause a huge slowdown in the UK property market, RMV could be impacted. This is a risk to consider.

Overall though, I see considerable investment appeal here. The stock currently trades at about 28 times this year’s forecast earnings, which I see as a very reasonable valuation.

Like buying £1 for 31p

This seems ridiculous, but we almost never see shares looking this cheap. Yet this Share Advisor pick has a price/book ratio of 0.31. In plain English, this means that investors effectively get in on a business that holds £1 of assets for every 31p they invest!

Of course, this is the stock market where money is always at risk — these valuations can change and there are no guarantees. But some risks are a LOT more interesting than others, and at The Motley Fool we believe this company is amongst them.

What’s more, it currently boasts a stellar dividend yield of around 10%, and right now it’s possible for investors to jump aboard at near-historic lows. Want to get the name for yourself?

See the full investment case

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Edward Sheldon owns shares in Experian and Rightmove. The Motley Fool UK has recommended Experian and Rightmove. 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.

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