3 penny stocks I’d buy in my Stocks and Shares ISA right now

A pile of British one penny coins on a white background.

I’m looking for dirt-cheap UK shares to buy for my Stocks and Shares ISA right now. Here are three British stocks trading inside penny-stock territory I’m considering snapping up.

Freight giant is booming

A steady improvement in the global economy bodes well for Xpediator (LSE: XPD). Why? Well this penny stock provides freight management services which get goods moving across the breadth of Europe, whether by air, sea or road.

It also offers warehouse and logistics services to customers and has operations in the fast-growing e-commerce services segment too.

Xpediator shares go for 69p a pop, below the penny stock limit of £1. And the strength of trading following the Covid-19 crisis has even taken the company itself aback.

The freight giant once again lifted its profits forecasts for the full year back in June. It’s worth remembering that its strong performances could hit the buffers if the Delta mutation continues to send coronavirus infection rates higher.

But, over the long term, I think this penny stock could still prove a wise UK share to buy, helped by its exposure to Eastern European emerging markets.

Follow the Van

Van Elle Holdings (LSE: VANL) — which trades at 45p per share — is the largest ground engineering contractor on these shores. In my opinion this puts it in a terrific position to ride the strong rebound in the British construction sector.

Indeed, latest financials this month showed its order book rose to £34.7m as of 9 August. This was up from £26.4m at the same point in 2020.

The company’s core markets were operating near capacity towards the end of the last financial year (to April). And, pleasingly, the bidding pipeline for its Rail division has improved in recent months.

Though, like any UK share, this penny stock isn’t without risk. A shortage of building materials and labour in the construction market could potentially choke off Van Elle’s recent recovery.

A penny stock for the pharma arena

I also think Sareum Holdings (LSE: SAR) could be a top penny stock to buy today and to hold for years. This UK healthcare firm specialises in producing drugs for the treatment of cancer and autoimmune disorders. And the company is making huge strides in these therapy areas, as recent testing updates show.

Of course there’s no guarantee Sareum (which trades at 6.8p per share) can keep its recent strong momentum at the lab bench going.

Drugs development is a notoriously challenging endeavour, and costs can soar and revenues can suffer if a product is delayed (or, in extreme cases, even binned).

However, I’m encouraged by the recent news flow coming out of Sareum on the R&D front.

And following recent fundraising it has a decent cash pile with which to continue its research, something which may alleviate the need to tap shareholders for cash again too soon.

The post 3 penny stocks I’d buy in my Stocks and Shares ISA right now appeared first on The Motley Fool UK.

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Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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.