As the stock market wobbles I’m hunting for ISA bargains! Here are 3 to consider

The global stock market has had a wobble this week amid a sell-off in government bonds. The FTSE 100‘s down 2% since the start of the week, while the S&P 500‘s down around 1%.

Some UK and US stocks have fallen particularly hard in recent days. These casualties include many top-quality shares I’d expect to bounce back from any near-term market volatility. It’s my view that this weakness provides a top dip-buying opportunity.

Here are three fallers I’ve added to my own Stocks and Shares ISA watchlist.

A FTSE 250 faller

Forget the FTSE 100 heavyweights like Lloyds and HSBC. Lion Finance (LSE:BGEO) has been one of the London stock market’s best banking shares over the last five years, soaring 744% in value.

Yet this FTSE 250 share’s been the sector’s biggest loser this week, falling 9%. For me, this makes this dirt-cheap share even more attractive value-wise, even as the Iran War creates near-term risks. The bank’s forward price-to-earnings (P/E) ratio is 8.3.

Lion Finance generates most of its profits from its Bank of Georgia division, though it also has operations in Armenia and Belarus. Economic growth remains strong in these Eurasian markets, while banking product penetration remains extremely low. It’s why I expect earnings to keep soaring in the years ahead — net income surged 17% in the first half.

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Another stock market casualty

Babcock International‘s (LSE:BAB) shares have dropped 5% over five days, making it one of the FTSE 100’s biggest losers. The defence giant’s fallen as the cost of government borrowing has soared, casting a shadow over future weapons budgets.

I think the stock market may have overreacted, however. Given the tense geopolitical climate, the UK government (and Babcock’s other customers) are in my view likely to cut spending elsewhere to safeguard defence budgets. NATO nations’ stockpiles remain around post-Cold War lows, despite growing worries over Russian and Chinese foreign policy.

Today Babcock shares carry a P/E ratio of 14.8. That’s miles below the European defence sector average of 27-28, and doesn’t reflect recent strong trading. The company’s organic sales rose 8% in the financial year to March.

A top REIT opportunity?

Safestore (LSE:LSE) has dropped 5% in value over the last week, making it the UK’s worst-performing real estate investment trust (REIT). Concerns over interest rate hikes are impacting the whole sector. But Safestore’s high sensitivity to fragile consumer spending has added to market nerves.

The trust warned in September that full-year profits would come in at the lower end of forecasts. So it’s no surprise to see a lot of fresh selling activity. But for me, this represents an attractive dip buying opportunity. Why? The self-storage market is still tipped to grow rapidly over the next decade. Sector supply remains low, and Safestore has a strong development pipeline to capitalise on this.

Today the REIT has a forward P/E of 9.6. Its dividend yield is also high at 6.2%. I think it’s a top stock to consider following recent market turbulence.

Should you invest £5,000 in Babcock International Group Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Babcock International Group Plc made the list?

Royston Wild owns shares in HSBC and Babcock International.