1 stock I’d buy and 1 I’d avoid for my Stocks and Shares ISA

first_img1 stock I’d buy and 1 I’d avoid for my Stocks and Shares ISA Jonathan Smith | Tuesday, 23rd March, 2021 | More on: CINE WPP I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. 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Simply click below to discover how you can take advantage of this. “This Stock Could Be Like Buying Amazon in 1997”center_img Our 6 ‘Best Buys Now’ Shares John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. jonathansmith1 has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Amazon and Netflix and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The Stocks and Shares ISA deadline day is just a couple of weeks away. To maximise my current year allowance, I want to try and invest any surplus funds I have before then. After the clock resets, I have another 12 months using my fresh allowance. Within my ISA, I don’t have to pay any capital gains tax when I sell stocks from that year (or indeed stocks I’ve held for years within the ISA). So before the deadline kicks in, here’s what I’m thinking about two stocks in particular.A FTSE 100 stock I’d buyA company that I’m considering to buy for my Stocks and Shares ISA is WPP (LSE:WPP). This is a large multinational advertising company. Within the scope of advertising also comes public relations, media and other elements. The share price is up 88% over the past year.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…I like the business because, for my ISA, I’m looking for sustainable companies for the long run. The nature of advertising means that it’ll always be demanded by clients. Sure, the medium might change away from TV and more towards mobile or other channels, but given the size and scale of WPP, it can have fingers in all of these pies.This has been seen over recent years. If I ignore the large impairment taken on during 2020, the business weathered the pandemic well. Revenue was only down by 7.3% versus 2019. During the year it also managed to reduce net debt by £0.8bn at a time when a lot of other firms were increasing debt levels.The risk here is any knock-on impact of the £3.1bn impairment charge taken on recently. This was charged as a reduction in the value of acquisitions it had made pre-Covid. If further reduction in valuation happens, this would likely also reduce the value of the share price.One I won’t buy for my Stocks and Shares ISADespite the recent rally in the share price of Cineworld (LSE:CINE), I’d stay away from it as a stock for my ISA. It may be up over 100% in the past 12 months, but this ignores the crash of early March 2020.The impact of the pandemic has been drastic on the cinema operator. We’ll see the extent of it on Thursday when full-year results are released. Regardless of the loss, I’m staying away. Even if sites can reopen in May, I think people will be very cautious about going back to the cinema.Large releases have been postponed until later in the year anyway. For example, the next James Bond movie is now due on screens in September. So I think this summer will continue to see low occupancy, compounded by a desire to be outside and to socialise.Even if Cineworld can get through to the end of 2021, I think the fundamental business model of a traditional cinema operator is going out of fashion. Streaming services such as Netflix and Amazon Prime are continuing to see large sign-ups. Of course, given that the stock is so cheap, my risk of not buying could be a huge missed opportunity. It could easily generate high returns for an investor willing to take the risk of a turnaround in coming years due to the low valuation currently. Image source: Getty Images Enter Your Email Address See all posts by Jonathan Smithlast_img read more