2 UK shares trading at 10-year lows, consider buying on an ISA

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Investing in unfavorability FTSE100 valuing stocks before they recover can provide investors with huge profits. The best recent example is Rolls-Royce. Someone who bought this before it recovered would make a fortune.

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The engineering giant’s shares are up 1,208% in five years. That would turn £10,000 into a staggering £130,800. Are there currently similar recovery options?

Despite a forceful 2025, the FTSE 100 is full of value stocks. The most essential thing is to get on board before takeoff, not after it. So do these two fit the bill?

Bunzl begins to recover

Personally, I bought a distribution and service group Bunzl (LSE: BNZL) last summer after share prices fell as US earnings slowed. This seemed like a scarce opportunity to support this solid company at a discounted price.

Before the sale, Bunzl had grown steadily over the years, fueled by an aggressive acquisition strategy. It also has a great dividend track record, increasing shareholder payouts every year for over thirty years. However, the company’s shares are now down 37% in 12 months, bringing its price-to-earnings (P/E) ratio down to a modest 11.1.

Shares are trading near 10-year lows but are showing signs of stabilizing, in fact they are up 5% in the last week. I hope this is the beginning of recovery. We’ll see.

Bunzl expects full-year revenue to enhance by up to 3% at constant exchange rates, but to remain broadly flat compared to the actual level. What it really needs is a brighter US economy and perhaps a stronger dollar as this increases sterling revenues.

The final yield increased to 3.44%, with a chance for further share price growth. I think it is worth considering this year’s edition of Stocks and Shares ISA, but with a long-term perspective.

Croda’s stock is also rising

I watched The international company Croda (LSE: CRDA) like a hawk. It produces specialty chemicals used in cosmetics, agriculture and life sciences, and sales have surged during the pandemic as customers stockpiled materials. Once the panic subsided, sales dropped. Customers had what they needed in stock. Croda’s share price followed suit.

My view is this. At one point, customers had to wade through the pandemic piles, and once they did, Croda was booming. Shares are still down 55% over five years and 7.3% over 12 months. However, like Bunzl, Croda is up about 5% in the past week.

Croda also has a stellar dividend record, increasing shareholder payouts for each of the last 30 years. Thanks to the falling share price, the terminal profitability increased to 3.8%.

The key to buying recovery stocks is to get to them before they take off, as the first breakout to the upside is often the biggest. Shares are trading at 10-year lows. Croda is slightly more exorbitant than Bunzl with a P/E ratio of just over 20. It also needs a more active global economy, and its lack remains a risk. But I sense something moving here and I think it’s worth finally considering.

I don’t expect any of them to make a Rolls-Royce. I see them more as sluggish burners. Providing dividends and growth over time and building long-term wealth through compounding. It might support that they’re both starting from a much lower base now.

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