Stock market

2 ‘unstoppable’ FTSE 100 shares I would buy for a new ISA.

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ISA season has arrived. 6 April was the first day I could add fresh funds to my stocks and shares ISA.

But with the new money sitting there, I’m looking at which share to buy next. More specifically, I am considering. FTSE 100 Shares

FTSE 100 Best Retailer

The first Footsy share on my hit list is a UK fashion/lifestyle retailer. next (LSE:NXT). I owned this share several years ago when it was trading at around £10. Since then it has increased ninefold.

An investment of £5,000 would now be worth £43,500. It’s a shame I didn’t catch it. But that is in the past. Next has been and continues to be an impressive operator.

In my opinion, his business strategy has put him ahead of the competition. For example, it was one of the partners moving towards online sales.

Today, this innovation continues. For example, it now operates a Total Platform product that allows third-party brands to use Next’s infrastructure services such as IT, warehousing and marketing.

This could be a key driver of future growth, especially in a changing retail environment.

A high quality business

Next shares offer many of the characteristics that make a quality stock. For example, it offers double-digit returns on capital employed. It is also a profitable business that generates free cash flow.

This enables it to reduce debt and return excess cash to shareholders.

Keep in mind that retail customers still face high cost of living pressures. Weather can also play a role in customer buying habits. And both factors can affect near-term earnings.

That said, these are short-term factors. In the long term, I believe Next will remain one of the leading retailers in the UK.

This is why this time when I buy shares, I hope to hold onto them.

A big pharma giant

Another standard FTSE 100 share I would buy is the pharmaceutical giant. AstraZeneca (LSE:AZN) is the second largest company on Footsy, one place behind. Shell.

Astrazeneca is a world class player in this industry. Over the past decade it has focused on research and development. And it now offers a rich pipeline of innovative drugs in oncology, biopharmaceuticals and rare diseases.

If executed well, it will provide an excellent source of income growth for many years.

Oncology represents 35% of its portfolio and sales grew 23% last year. I will note that Chief Executive Pascal Soriot expects “Another year of strong growth in 2024, driven by continued adoption of medicines across geographies

to make a fuss

Astrazeneca has recently bought several billion dollar companies. And while it may strengthen its pipeline, it doesn’t come cheap. Big acquisitions also come with some risk. That said, there’s plenty of experience to lean on on this megacap.

It trades at a forward price-to-earnings ratio of 16. It’s largely in line with peers, but I’d say it’s not expensive given its strong pipeline and potential.

Overall, both FTSE 100 top picks could prove to be unstoppable players in the long-term ISA. So I plan to buy both of them soon.

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