We’ll soon be in the last full month before the current stocks and shares ISA limit expires, and I’m looking for shares to buy before April comes around.

If it’s for ISA, what do I want? I want a reliable business that serves people’s needs over the long term. I’m looking for strong cash generation and the ability to pay a reliable dividend. Ideally, a falling stock price with room to recover would put the icing on the cake.

Unless I’m wrong, Taylor Wimpey (LSE: TW.) It looks like it could meet all those needs. What’s more, the homebuilder is scheduled to report full-year results on March 5.

Good value?

Let’s take a look at that last factor on my list, the falling stock price – because that was my first warning. Taylor Wimpey shares are down 29% over the past five years, which is promising. But after two years of declining profits, the valuation is still far from rock bottom.

In fact, we’re looking for the price-to-earnings (P/E) ratio to rise above 30 based on the current analyst consensus. It’s been over twice FTSE 100 index middle. I rarely want to buy stocks at that kind of multiple.

In the company’s January trading update, CEO Jenny Daly spoke of “Strong performance through 2025 in the context of difficult market conditions“…So maybe we should see a tough set of numbers on March 5, it seems.

But even with the property market hit by inflation and rising mortgage rates, the average overall sale price in Wimpy in 2025 rose to £335,000, from £319,000 the previous year. In fact, revenues also rose to £3.8 billion from £3.4 billion. The company expects to report a modest rise in operating profits for 2025. This doesn’t sound like a disaster to me.

Further forward

What we’re looking at here is an industry that must surely have one of the most positive long-term outlooks among the entire UK stock market, right? Our housing shortage is chronic, and any plans to alleviate it can only be for the long term.

With Bank of England interest rates expected to fall, forecasters expect Taylor Wimpey’s two-year earnings to rise in 2026 and 2027. If that happens, we could see the stock price drop below 13 by 2027. This could make it the type of stock valuation I like to buy at.

What is it about profits that I like so much? As Taylor Wimpey shares fell, the forward dividend yield rose 8%. Now, it’s not guaranteed. But the company ended the year with net cash of £343m. This is after paying the interim dividends expected after the first half results.

On my ISA list

I’m afraid we’ll still see share price weakness from Taylor Wimpey, especially with management forecasting weaker operating profit margins in 2026 – partly due to construction cost inflation. But it’s on the shortlist, though it has quite a few other tempting opportunities I see out there…