2 UK share prices are trading at 10-year lows to consider buying with an ISA
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Investing in dislikes FTSE 100 value stocks before they recover can bring huge returns to investors. An excellent recent example Rolls-Royce. Someone who bought that before fighting back into form would have made a fortune.
Shares of the major engineering company are up 1,208% in five years. That would turn £10,000 into a staggering £130,800. Are there similar opportunities for help today?
Despite the strength of 2025, the FTSE 100 is full of value stocks. The key is to get in before they leave, rather than after. So do these two fit the bill?
Bunzl is starting to recover
I personally bought a distribution and services group Bunzl (LSE: BNZL) last summer after shares fell due to lower US earnings. It looked like a rare opportunity to support this strong company at a reduced price.
Before the sale, Bunzl had grown slowly for years, driven by an aggressive acquisition strategy. It also has a good dividend record, paying shareholders every year for more than three decades. Yet shares are now down 37% in 12 months, bringing the price-to-earnings (P/E) ratio down to 11.1.
Shares are trading near 10-year lows but showing signs of recovery, in fact, up 5% last week. I hope this is the beginning of recovery. We will see.
Bunzl expects full-year revenue to grow 3% at constant exchange rates, but to be flat in real terms. What it really needs is a vibrant US economy, and perhaps a strong dollar, as that boosts income in spectacular terms.
The next yield rose to 3.44%, with the possibility of higher share price growth. I think it’s worth considering a Stock and Shares ISA for this year, but from a long-term perspective.
Croda shares are also rising
I’ve been watching Croda International (LSE: CRDA) like a hawk. It makes specialty chemicals used in beauty, agriculture, and life sciences, and sales soared during the crisis as customers stocked up on building materials. As panic subsides, sales decline. Customers had what they needed in stock. Croda’s share price has been tracked.
My opinion is this. At some point, customers had to use their plague stacks, and when they did, Croda would be in clover. Shares are down 55% in five years, and 7.3% in 12 months. But like Bunzl, Croda jumped almost 5% last week.
Croda also has an excellent dividend record, with payouts to shareholders walking each of the last 30 years. Due to the decline in share prices, the subsequent yield rose to 3.8%.
The key to buying a recovery stock is to get in before it moves, as the first bump up is usually huge. Shares are trading at near 10-year lows. Croda is more expensive than Bunzl at a P/E of just over 20. It also needs a stronger global economy and its absence remains a risk. But I see something moving here and I think it should finally be considered.
I don’t even expect to make a Rolls-Royce. I see them as slow burners. Delivering returns and growth over time, and building long-term wealth through compounding. It might help that both of them are now starting from scratch.
