If I had £ 3,000 to invest today, I would buy FTSE 250 stock. The reason is simple. I think the FTSE 250 shares will benefit more from the UK economic recovery. Therefore, investors may see better returns.
With that in mind, here are some of the mid-cap stocks we buy for our portfolio:
The first on my list is High Street Baker Greggs.. The company has adapted well to the business environment for the past 16 months. We are currently taking advantage of resumption based on this progress.
According to the latest trading updateSimilar sales growth for company-managed shops increased between 1% and 3% against 2019 levels at the end of June. This growth is stronger than management expected,Substantially positive impactIs stated in the financial results for the year.
Two headwinds that can hinder Greggs’ recovery are rising costs and another wave of coronavirus. Any of these can hurt growth and profitability.
In the same field, I would like to play recovery Greencore.. This convenience food maker is having a hard time adapting to new conditions. But now that the economy is back on track, management is optimistic. In the 13 weeks leading up to June 25, Group revenues increased 53.1% year-on-year, just 2.8% below pre-Covid levels.
These numbers show how far your business has progressed. And as the economy resumes, companies should be able to build on this progress.
Unfortunately, last year Greencore had to ow a lot of debt to survive the crisis and stay in the light. That’s what I’m paying attention to, as this borrowing can weigh heavily on the recovery of the group.
Elsewhere, we also buy the FTSE250 Construction Group Balfour Beatty..As a government Increase spending on infrastructure Nationally, I think the construction industry should benefit. As one of the sector’s leading players, Balfour is my number one choice.
After a year of turmoil, the latest information on the latest transactions shows that the group is back on a solid foundation. Management is beginning to return cash to investors by buying back shares. I will buy stock as the company continues to grow.
However, it should be pointed out that construction can be a very cyclical and low-margin industry. As a result, Balfour is not suitable for all investors.
The last FTSE250 stock I will invest in is a buy-to-let lender. OSB.. Real estate is the UK’s leading market, and over the past year, investors and individual buyers have sought new real estate.
This trend seems to continue and there is always a special place for niche lenders like OSB. By offering customers custom-made products, the company can offer products that major banks cannot offer.
Two risks that businesses may face are low interest rates and competition. These challenges can reduce profit margins and returns if interest rates remain sluggish.
Rupert Hargreaves does not have a position in any of the listed shares. Motley Fool UK recommends Greencore. The views expressed about the companies 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 exploring different insights, Better investors than us.
I will invest £ 3000 in these FTSE250 shares
https://www.fool.co.uk/investing/2021/07/29/id-invest-3k-in-these-ftse-250-stocks/ I will invest £ 3000 in these FTSE250 shares