Business & Investment

3 FTSE 250 shares to buy by October

October is just around the corner, which means a number of updates from UK companies are underway.Today I’m looking at 3 stocks from FTSE 250 In my opinion, that stock price could rise in the coming weeks.

Staycation winner

Updates to the latest deals from food bakeries / retailers on the go Greggs (LSE: GRG) It will be an indispensable reading for me on October 5th.It’s one of the biggest single company positions in me Stocks and stocks ISA..

We are confident that whatever numbers released will be encouraging, as we are likely to have benefited from staycation in the UK and the return of High Street to normal. Are the recent signs that the company is keen to open stores for the rest of the year certainly bullish?

Of course, the risk of Greggs is that all of this is already priced. A valuation of 29 times the projected return definitely does not give new investors a large safety margin. Perhaps the deal has eased. Perhaps for now, everyone is filling up the post-blockade sausage rolls.

It doesn’t matter — I’m focusing on the long term. If you make a mistake, use the dip as an opportunity to increase your hold.

High quality FTSE250 retailer

Household goods retailer stock Dunerm (LSE: DNLM) It has increased by 74% over the last five years. It may not be as great a performance as you’ll find elsewhere in the index, but it’s still a very decent return. From a perspective, it’s far more than double what was achieved with the FTSE 250 as a whole (32%).

Next month’s trading renewal scheduled for October 14 could see even more positive momentum. Despite the apparent lack of economic moat, a valuation of just under 21 times the return seems reasonable for companies that consistently generate significant returns on the money they invest. The fact that Dunelm’s free float is low can also exacerbate upward movement. Only about 55% of the company’s stock is actually traded.

Of course, a large downward dive is also possible. Investors may also argue that Dunelm has already benefited from home renovation bugs that occurred over 2020 and could slow down.

Still, the 2.8% dividend yield is higher than the FTSE 250’s 1.8%. It also looks very safe, based on expected profits.

Strong recovery

Employing company Haze (LSE: HAS) Is the third stock whose stock price may rise in October. Like Dunelm, we plan to release a trading update on October 14th.

Last month, a member of the FTSE 250 said:A clear route back to pre-pandemic profit levels and beyondWith a clip that is faster than previously expected. It’s no wonder that stock prices are skyrocketing.

I can’t imagine the outlook getting worse in the last few weeks. In addition, the fact that there is only one PEG (Price / Revenue to Growth) ratio suggests that investors can make a lot of money from stocks. Net cash positions and the recent resumption of dividends further strengthen the investment case.

clearly, Rapid increase in Covid infections You can stop this progress. This certainly cannot be dismissed as the cold weather is approaching and more people are a little less vigilant than usual. As always, before triggering here, you need to make sure that you have diversified into other sectors.


Paul Summers owns a stake in Greggs. Motley Fool UK does not have a position in any of the listed shares. The views expressed about the companies mentioned in this article are those of the author and may differ from the official recommendations made by subscription services such as Share Advisor, Hidden Winners, and Pro. Here at The Motley Fool, by examining different insights, Better investors than us.



3 FTSE 250 shares to buy by October

https://www.fool.co.uk/investing/2021/09/28/3-ftse-250-stocks-to-buy-before-october/ 3 FTSE 250 shares to buy by October

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