£3,000 to invest? Here are 3 UK shares to buy in a Stocks and Shares ISA, according to experts

For Stocks and Shares ISA investors, October could be a lucrative month in the long run. With volatility on the rise, some buying opportunities may soon be emerging among top-notch stocks in Britain. And in preparation, many institutional investors have been sharing their favourite stock picks with clients.

Among the list of favourites, several FTSE shares are coming up more than once. And that includes:

• Tesco (LSE:TSCO)
• HSBC (LSE:HSBA)
• Antofagasta (LSE:ANTO)

So why are the experts so bullish? And should investors with a spare £3,000 be considering these businesses for their own portfolios?

Opportunities in retail

Let’s start with the UK’s largest supermarket. The analysts at UBS and RBC Capital have recently reiterated their Buy ratings, citing confidence in the group’s operational performance and market share expansion.

Considering Tesco has managed to seemingly fend off the threat of competing discount retailers, it’s easy to see why institutional investors are growing increasingly bullish. Even more so when looking at the group’s latest impressive interim results, which saw profit guidance getting hiked.

Historically, while Tesco hasn’t been 100% immune, the business has usually fared well during economic slowdowns. That’s because, as a staple business, demand for groceries tends to remain strong even in a recession.

So far, Tesco’s Clubcard loyalty scheme has kept value-seeking shoppers flowing through its doors. But in a harsher operating environment, the group may have to ramp up discounting activity to remain competitive with Aldi and Lidl, putting pressure on gross margins.

Mining and banking trends

HSBC and Antofagasta are also coming up on lists from Goldman Sachs, Citigroup, and Berenberg Bank.

Higher interest rates have helped bolster the bank’s profit margins, particularly in Asia, where it predominantly operates. Meanwhile, strong local economic growth has also helped elevate valuations among public and private assets, allowing its large wealth management arm to outperform.

But of course, rising trade tensions between China and the US are creating geopolitical uncertainty. And this is only being compounded by the political issues between Beijing and Hong Kong, where HSBC does a lot of business. If the bank fails to navigate this increasingly complex environment, it could open the door to disruption and volatility.

Another international enterprise grabbing attention is Antofagasta for its copper mining potential. With production volumes being ramped up alongside rising commodity prices, the group’s underlying earnings have skyrocketed in 2025, sending dividends up at the same time.

Given the critical importance of copper in global electrification and data centre infrastructure rollout, institutions are seemingly placing big bets on raw material suppliers of these trends.

But of course, this too has risks. A sudden shift in the supply/demand balance could cause copper prices to reverse, taking Antofagasta’s profits with it. And even if that doesn’t happen, production disruptions at its mines or prospective projects could cause the business to miss targets – a big problem given the lofty price-to-earnings ratio of these shares.

The bottom line

All things considered, there seem to be some promising opportunities here, with Tesco and Antofagasta the most interesting, in my mind. That’s why investors may want to consider taking a closer look at these businesses for their ISAs. But these aren’t the only stocks on my radar today.

The post £3,000 to invest? Here are 3 UK shares to buy in a Stocks and Shares ISA, according to experts appeared first on The Motley Fool UK.

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HSBC Holdings is an advertising partner of Motley Fool Money. Zaven Boyrazian has no position in any of the shares mentioned. The Motley Fool UK has recommended HSBC Holdings and Tesco Plc. 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.

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