The end of the tax year is nearly here and investors are looking to take full advantage of their ISA allowances.
There’s plenty of scope for uncertainty in the markets, as concerns circle around the trajectory for interest rates, restrictions on international trade, and the sustainability of investment in artificial intelligence (AI).
Despite this, we still believe that best-in-class companies with strong customer propositions and resilient business models are best placed to ride out fluctuations in the market and prosper over the longer term.
Looking through that lens here are five shares which we think are worth considering for your Stocks and Shares ISA.
Investing in an individual company isn’t right for everyone because if that company fails, you could lose your whole investment. If you cannot afford this, investing in a single company might not be right for you. You should make sure you understand the companies you’re investing in and their specific risks. You should also make sure any shares you own are part of a diversified portfolio.
This isn’t personal advice. All investments and any income they produce can fall as well as rise in value – you could get back less than you invest. Yields are not a reliable indicator of future income. Past performance is not a guide to future returns. If you’re not sure an investment is right for you, please seek advice.
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Airbus
Long runway ahead
At its core, Airbus builds aircraft using thousands of parts from companies worldwide.
This market is dominated by two companies, with the split standing at roughly 60/40 in Airbus’ favour.
We think recent events will see airlines place more orders with Airbus over the coming years, tilting the balance more in its favour. High barriers to entry also help keep outside competition at bay.
Demand is strong as airlines try to upgrade their fleets after years of COVID-19 underinvestment. As a result, the order backlog swelled to 8,658 aircraft at the end of 2024.
Backlog of commercial aircraft orders
That’s more than 11 times the number of planes Airbus managed to deliver in 2024 (766 aircraft), giving the group great revenue visibility.
However, some of Airbus’ suppliers have struggled to keep up with demand. That’s holding back production volumes in the near term, so there could be some weakness in the short term. Management has put plans in motion to resolve these issues, although it could be next year before production ramps up materially.
Then there’s the Space division where a new management team conducted an in-depth review and had to book significant charges due to mispricing previous contracts. This more than offset progress elsewhere in the business, causing full-year operating profits to fall by 8% to €5.4bn in 2024.
That looks to have been the reset needed, and we’re cautiously optimistic that the division can contribute positively from here. The balance sheet is in good shape, with strong net cash balances giving management the confidence to announce increased shareholder returns. As always though, these are variable and never guaranteed.
The valuation is a little above the long-run average, but we don’t think that’s too demanding given its improved market position and strong demand outlook.
If Airbus can iron out supply chain issues, there could be a long runway of growth ahead. Of course, this isn’t a simple task, and there are no guarantees, so expect some turbulence along the way.
AstraZeneca
Transforming the treatment of serious disease
AstraZeneca is a pharmaceutical giant at the cutting edge of drug-development. There’s a strong outlook for existing medicines as well as the pipeline of potential new products, an area where Astra's hit rate in the clinic has been impressive.
2025 has already seen a string of regulatory approvals for the group’s cancer therapies. That builds on a cornerstone of the company’s offering. After approval, sales of cancer drugs can build incrementally for many years as patient access improves, approvals are gained in new markets, and clinical trials prove their efficacy in additional diseases.
Its approach to medical research is underpinned by some admirable ambitions, like eliminating cancer as a cause of death, and the prevention of chronic kidney disease progressing to organ failure. Despite the strong track-record, Astra still has to contend with the substantial risks that come with drug discovery, so investors need to be prepared for disappointments.
However, we don’t feel the target to deliver annual revenue of $80bn by 2030 looks too demanding. We’ve seen strong growth in several disease areas beyond cancer too. The high-value nature of the group’s products has also improved profitability and there’s scope for more to come.
Core operating margin
AstraZeneca’s progress hasn’t gone unnoticed by the market, briefly capturing the title as the FTSE 100’s most valuable company. But allegations of fraud by key staff in Astra’s Chinese operations have since seen the shine taken off the valuation.
We think the market might have over-estimated the potential repercussions of this unfolding saga.
Despite a slight recovery so far this year, we still think this presents an opportunity to gain exposure to a high-quality business trading on an earnings-multiple below the long-run average. However, while uncertainty remains, the shares are likely to be highly sensitive to developments in China.
London Stock Exchange Group
Bridging the gap
The London Stock Exchange Group (LSEG) is more than just a stock exchange. It’s a global leader in financial data and technology.
After buying Refinitiv, a major data and analytics business, LSEG now earns most of its revenue from providing tools and services that financial professionals rely on daily. There are also revenue-generating services like clearing and settlement, which help ensure that financial transactions are completed smoothly. We like the variety of income streams.
What’s exciting about LSEG is its potential for growth. The company has been working hard to boost profitability, with cash flow and efficiency both expected to improve over the next few years.
Analysts predict a noticeable increase in LSEG’s return on invested capital (ROIC), a measure of how well a company uses its capital to generate profit. We see this as a key area for improvement that could help bridge the valuation gap between LSEG and some of its US peers, if it can deliver.
LSEG return on investment capital (ROIC)
Looking ahead, LSEG is expected to keep growing as it integrates new technology and expands its offerings. For example, its focus on cloud-based solutions and automation is helping financial institutions save time and money.
As a major player in global finance, LSEG faces some challenges. The financial industry is heavily regulated, so changes in rules could impact its business. The company also relies on cutting-edge technology, which requires constant investment to stay ahead.
The electronification of trading, embedding tech into capital markets, and growth in demand for data and tools to analyse it are all areas that LSEG looks well-placed to benefit from. But some of that has already been priced in, and if it wants to continue bridging the valuation gap to US peers, it needs to deliver.
NVIDIA
More growth to come
NVIDIA’s dominance in accelerated computing and AI has propelled it to become one of the most valuable companies in the world.
A second consecutive year of treble-digit sales growth to $130.5bn reinforced our view that NVIDIA is a once in a generation company. Cash flow and profit progression have also been impressive.
NVIDIA free cash flow $bn
NVIDIA is confident that the upgrade cycle of outdated data centres represents a $1trn opportunity. We think new cloud deployments could generate a similar sized prize, and the emergence of dedicated AI infrastructure adds further blue-sky potential.
Management also sees opportunity for dedicated AI infrastructure. For that to materialise, AI needs to deliver strong financial results for organisations that integrate it into their products and processes. So far, we’re impressed by the impact AI is having on everything from content creation and customer services to computer programming.
But the emergence of Chinese AI engine DeepSeek-R1 on what seems to be a relatively low budget has sparked intense debate around NVIDIA’s demand outlook. But efficiency improvements in AI development could actually increase the total addressable market for NVIDIA’s products by improving the return on its customers’ investments. For now, there’s little sign of a slowdown in demand.
Other risks to be mindful of include capacity constraints in the supply chain, the impact of trade restrictions and tariffs, and emerging competition.
Despite NVIDIA’s long track record of delivering strong profit growth for investors, the valuation now sits materially below the long-run average. Its position as an enabler of advances in computing power leaves it well placed to continue benefitting from ongoing shifts in technology.
However, it’s also a company that attracts intense investor scrutiny, meaning there’s pressure to keep delivering.
Unilever
Streamlining a beast
Unilever is undergoing a significant transformation under new leadership, with a sharpened focus on its most valuable brands. The company is concentrating its resources on its Power Brands – household names that drive the majority of its sales. This strategy is designed to strengthen growth and boost profitability, helping Unilever push on from a period of lacklustre growth.
Early signs suggest this renewed focus is paying off.
Investments in these core brands are delivering stronger sales growth and improving efficiency across the business. The message is clear – Unilever is prioritising long-term success by focusing on what works best as opposed to pushing for scale at all costs.
The company is also streamlining its operations to support this strategy. Rather than simply cutting costs, it’s reinvesting in high-potential brands to ensure sustainable growth. This shift signals confidence in its ability to deliver stronger results over time.
After a difficult period of high inflation, Unilever isn’t having to lean so heavily on price hikes and that’s helped volumes get back on a positive trend.
Beyond its core markets, Unilever’s presence in fast-growing regions like India provides an additional long-term growth driver. As consumer demand rises in emerging markets, the company is well-positioned to capitalise on shifting trends and expanding economies.
Revenue by geography
That said, there are still challenges ahead.
Unilever’s plan to sell its large ice cream business could be a short-term hurdle. While the move is intended to simplify the company’s focus, the transition will need careful execution to avoid disruption.
Overall, Unilever’s refreshed approach is building momentum. A clear focus on its strongest brands, improving profitability, and expansion in high-growth markets all paint a positive picture. But this turnaround is still in its early days.
Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by Refinitiv. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
This article is not advice or a recommendation to buy, sell or hold any investment. No view is given on the present or future value or price of any investment, and investors should form their own view on any proposed investment. This article has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is considered a marketing communication. Non-independent research is not subject to FCA rules prohibiting dealing ahead of research, however HL has put controls in place (including dealing restrictions, physical and information barriers) to manage potential conflicts of interest presented by such dealing. Please see our full non-independent research disclosure for more information.
