Early data indicates this ISA season was a washout for FTSE 100 shares. But it wasn’t just Footsie companies that suffered weak investor demand — UK shares of all colours were neglected before the end of the 2025/26 tax year.
Against the backdrop of the Iran War, investors’ appetite for riskier assets like equiries crumbled. ISA users didn’t even need to buy any shares to utilise some or all of their £20k yearly allowance. Just depositing cash was enough. Yet investor appetite remained muted.
Given the huge discounts many stocks now trade on, this is a missed opportunity, in my view. History shows that quality stocks always recover strongly in value when confidence in the stock market improves. Buying these cheaply can supercharge one’s returns over time.
It’s not too late to go bargain-hunting with a Stocks and Shares ISA though. Here are just twocheap FTSE 100 stocks that I think demand a close look.
Fresnillo
Precious metals stocks like Fresnillo (LSE:FRES) have had a bumpy ride of late. The reason? Dollar-denominated commodities like gold and silver have slumped as the US currency has gained momentum.
This leaves some tasty bargains to consider. This particular FTSE 100 miner now trades on a forward price-to-earnings growth (PEG) ratio of 0.4. Any sub-1 reading implies excellent value.
Despite their recent blip, gold prices are up 176% over the last five years. In my view, investors can expect further strong gains over a longer time horizon. Central banks are tipped to keep buying bullion to diversify their currency holdings and guard against risk. I’m also expecting demand from retail and institutional investors to keep rising as geopolitical and macroeconomic issues linger.
Buying Fresnillo shares does expose stock investors to the unpredictable business of mining and that’s a risk that can’t be shrugged off. But the Mexican company’s huge operational footprint means less risk than most other UK mining shares.
Sage Group
Over six months, Sage (LSE:SGE) shares have dropped a painful 25% in value.
Like Fresnillo, the software firm’s dropped sharply since the start of the Iran War. In this case, worries over company tech spending as inflation rises and growth slows has hit the stock.
But that’s not all pushing Sage’s share price lower. It’s also been a victim of recent AI-related volatility — could demand for its accounting and payroll software slump if businesses choose to do these processes with AI?
The threats are higher, no doubt, than they were six months ago. However, I feel the scale of the sell-off is overblown. Sage now trades on a forward price-to-earnings (P/E) ratio of 18.7 times. That’s significantly below the 10-year average of 31–32.
I feel the company’s strong long-term outlook remains intact. More and more businesses are digitalising their operations, and by embracing AI itself Sage is better placed to seize this opportunity. I think considering the FTSE 100 share at today’s low price is worthwhile.
