Have £1,000 to invest in the FTSE 100? Here are 2 growth stocks I’d buy in an ISA today

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While the FTSE 100 is dominated by companies with vast international exposure, there are still a number of large-cap stocks that are focused on the UK economy.

Although the near-term prospects for the UK remain uncertain in both a political and economic sense, there could be wide margins of safety on offer among companies that are dependent on the local economy for their sales.

With that in mind, here are two UK-focused FTSE 100 shares that could be worth buying today due to their long-term growth potential.

Auto Trader

While consumer confidence in the UK continues to be weak, online car listings platform Auto Trader (LSE: AUTO) is forecast to post a rise in net profit of 12% in the current year. This suggests that its strategy of offering an increasingly innovative service to customers could be paying off.

Of course, the company has a dominant position within the new and used online car sales industry. Therefore, even if it experiences a challenging set of operating conditions in the near term, its long-term growth potential appears to be bright.

Although the Auto Trader share price has gained around 27% in the last year, it continues to offer good value for money. It trades on a price-to-earnings growth (PEG) ratio of 1.9, which may prove to be appealing given its potential to deliver a high rate of growth over the coming years.

As such, for investors who are focused on the long-term prospects of their holdings, the company could prove to be a worthwhile investment at the present time.

Morrisons

Morrisons (LSE: MRW) also faces a period of uncertainty in the near term. Weak consumer confidence and increasing competition among sector peers could squeeze its sales and margins over the near term.

As such, its decision to reduce net debt over the last few years could mean that it is in a relatively strong position to face a challenging period for the wider supermarket sector.

Morrisons is seeking to adapt its business model so that its offering is closely aligned with changing consumer tastes. For example, it is investing in its online operation, while also seeking to offer improving levels of customer service in order to compete more effectively at a time when no-frills operators such as Aldi and Lidl have ambitious growth plans.

With the retailer forecast to post a rise in earnings of 10% in the current year, its strategy seems to be working well in what is a difficult period for the retail sector. Although its share price may come under pressure in the short run if UK consumer confidence ebbs away, the prospect of capital growth seems to be increasing as the company puts in place its strategy. As such, now could be an opportune time to buy a slice of the business for the long term.

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Peter Stephens owns shares of Morrisons. The Motley Fool UK has recommended Auto Trader. 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.

Motley Fool UK 2019