Image source: Getty Images
Some people will just be starting out on their investing journeys in April. While exciting, it can also be daunting looking at all the options. Where on earth to start? Here, I’ll highlight a trio of high-quality FTSE 100 shares that I think are worth considering for a new ISA portfolio.
Pharmaceutical giant
Big Pharma often gets a bad rep nowadays, but where would millions of patients be without the life-saving medicines? AstraZeneca (LSE: AZN) is the UK’s largest listed company and a world leader in oncology (cancer treatments).
Last year, total revenue jumped 21% at constant exchange rates to $54.1bn, while core earnings per share (EPS) increased 19%. By 2030, it’s aiming to launch at least 20 new medicines and reach $80bn in revenue, with sustained growth thereafter.
At £111 a pop, the shares are trading at 16.5 times forward-looking earnings. I think this is a reasonable valuation for a high-quality global company, though it could always suffer a key clinical trial or regulatory setback. These are unavoidable risks in the industry.
Still, AstraZeneca’s fundamentals are rock-solid. It’s very profitable, excellently run, and has attractive long-term growth opportunities. The stocks also offers a dividend, with the forward yield at 2.3%.
All this makes it an excellent candidate for a new ISA, in my opinion.
Leading credit bureau
From a pharma giant to a data one now with Experian (LSE: EXPN). The credit reporting company possesses a vast collection of data on consumers and businesses, mainly related to credit and financial behaviour. Its tools also help detect and prevent identity fraud.
For the six months to 30 September, revenue was up 7% to $3.6bn, with EPS rising 9%. For the full year that just ended in March, Experian expects organic revenue growth of 6%-8%.
While these might not seem exciting growth rates, it’s important to remember that many lenders, insurers and marketers rely on Experian. This means a large chunk of its revenue is recurring, making it very stable and predictable.
Importantly, its high-quality datasets are a goldmine for training AI models, something it has been doing for two decades. Generative AI is merely strengthening its business further.
Experian has just acquired ClearSale, a leading digital fraud prevention provider in Brazil. This adds e-commerce transactions, mobile phone and device data to the mix, strengthening its products and competitive position in Latin America’s largest economy.
The possibility of a consumer data breach is a risk, as this would cause significant reputational damage. Meanwhile, the stock isn’t cheap, trading at 25.5 times forward earnings. It’s priced for steady long-term growth, which will have to continue.
I’m bullish on the stock though. Digital lending in the form of buy now, pay later is exploding worldwide, which should continue benefiting Experian.
Technology fund
Finally, I think Polar Capital Technology Trust is worth considering Too. This investment trust offers wide exposure to many global tech titans, including Nvidia, Broadcom, Apple, and Meta Platforms.
The share price has almost doubled in five years. However, it hasn’t always been a smooth ride and more bumps in the road are guaranteed. Right now, for example, President Trump’s tariff policies could cause earnings volatility at global tech companies.
However, longer term, I expect this trust to increase in value as the ongoing digital/AI revolution gathers steam.
