So its the new financial year. You can invest up to 15,240 in a stocks &shares ISA. After a rocky few months, global stock markets lookcheap as chips.I firmly believe that this is a great time to go shopping for shares. But what will you buy?
Here arethree shares thatyou should buy right now.
AstraZeneca
Five years ago, most investors wouldnt touch pharmaceutical firm AstraZeneca (LSE: AZN) with a bargepole. With several key drugs tumbling down the patent cliff, and a disappointing drugs pipeline, this companys share price was plumbing the depths. The heyday of Big Pharma looked to be past.
But chief executive Pascal Soriot has turned round the fortunes of this drugs giant. A focus on world-class research, cutting edge biotechnology, and the development of money-spinning anti-cancer treatments have sparked a revival in profits, and the share price. Its no surprise that Pfizer recently tried to buy AZ. This is one of the pharmaceutical industrys most prized assets.
Yet the share price is off its highs, and I think theres more to come from this dividend dynamo. A 2016 P/E ratio of 14.54 and an incomeof 4.82% look good value.
Volkswagen
The emissions scandal that has hit Volkswagen (XETRA: VOW) over the past year has sent the share price tumbling. Yet my view is this crisis is no worse that what carmaking rival Toyota went through just a few years ago and today Toyota is the most successful car firm in the world, its recall scandal already forgotten.
Anyone who has seen the new Audi A4 and the Volkswagen Passat will know thatVolkswagen makes some of the best cars in the world. It doesnt look like a business thats going down the tubes.
Thats why I think Volkswagen is currently oversold, and is a strong contrarian buy. A P/E of 9.56, with a dividend yield of 3.99%, means this is a bargain that shouldnt be missed.
Carillion
Carillion (LSE: CLLN) isone of Britains leadingbuilding and support servicefirms, and is highly profitable. Its set to gain asa resurgent Britaininvests more in its infrastructure over the coming years.
It made a net profit of 139m in 2015, and earnings are set to advance further. Yet this is a business going dirt cheap. The 2016 P/E ratio is 8.37, with a dividend yield of 6.79%.
By any measure, these are enticing numbers, and you should buy Carillion both for growth, and for the dividend.
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Prabhat Sakya has no position in any shares mentioned. The Motley Fool UK has recommended AstraZeneca. We Fools don’t all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.
