Experts Recommend Three UK Stocks for October ISA Investment

Investors considering a Stocks and Shares ISA may find October 2023 to be a promising month, as experts highlight potential opportunities among several prominent UK stocks. Amid rising market volatility, institutional investors are sharing their top picks, with a focus on three notable companies: Tesco, HSBC, and Antofagasta.

Retail Resilience with Tesco

Tesco stands out as the largest supermarket chain in the UK and has garnered attention from analysts at UBS and RBC Capital, who have recently reaffirmed their Buy ratings. They cite the company’s strong operational performance and its ability to expand market share, even in challenging economic conditions. Tesco’s recent interim results have shown an increase in profit guidance, reflecting its resilience against competition from discount retailers.

While Tesco has historically navigated economic slowdowns effectively—thanks to its status as a staple business—the company may face increased pressure to implement discount strategies to compete with rivals like Aldi and Lidl. This dynamic could impact gross margins, particularly if the economic climate becomes more challenging.

Banking and Mining Prospects

In addition to Tesco, HSBC and Antofagasta have emerged as favorites among analysts from Goldman Sachs, Citigroup, and Berenberg Bank. For HSBC, rising interest rates have positively influenced profit margins, especially in Asia, where the bank has a significant presence. The growth of local economies has also contributed to elevated valuations within its wealth management sector.

Nonetheless, HSBC faces risks amid rising trade tensions between China and the United States, alongside ongoing political issues in Hong Kong. The bank’s ability to navigate this complex environment will be crucial in maintaining stability and avoiding disruptions.

On the other hand, Antofagasta is gaining attention for its copper mining operations. As production volumes increase and commodity prices rise, the company’s earnings have surged in 2025, leading to higher dividends. With copper playing a vital role in global electrification and technology infrastructure, investors are keenly interested in suppliers like Antofagasta. However, the company must remain cautious of potential shifts in the supply-demand balance, which could adversely affect copper prices and its profit margins.

Conclusion: Evaluate Investment Opportunities

In summary, experts suggest that investors with an available £3,000 should consider exploring opportunities in these three UK companies. Tesco and Antofagasta appear particularly compelling based on their recent performance and market position. However, investors should remain mindful of the inherent risks associated with each company, including competitive pressures and geopolitical uncertainties.

As October unfolds, the potential for attractive returns may prompt additional scrutiny of these stocks within the context of a diversified investment strategy.