Today I’m discussing five FTSE 250 (INDEXFTSE: MCX) stars offering unmissable value.
Package up a fortune
With business booming in Western and South-Eastern Europe — helped in no small part by bright acquisition activity and a commitment to innovation — I’m convinced box-builder DS Smith (LSE: SMDS) will be a lucrative investment for years to come.
City forecasts of a 14% earnings rise in the year to April 2017 results in a P/E rating of just 12.7 times, sailing below the benchmark of 15 times that indicates reasonable value. And the multiple slips to 11.6 times for 2018 thanks to a predicted 9% earnings rise.
Meanwhile, dividend yields of 3.6% and 3.8% for 2017 and 2018, respectively, both beat the big-cap forward average of 3.5%.
Support star
The essential and diversified nature of Mitie Group’s (LSE: MTO) products make it a great pick for defensively-minded investors, particularly given its proven track record of relationship-building with a broad range of blue chip customers.
The number crunchers have pencilled-in earnings growth of 1% and 5% for the periods to March 2017 and 2018, respectively, creating P/E ratings of just 10.9 times and 10.3 times.
And dividend yields of 4.6% for 2017 and 4.8% for 2018 should keep income chasers more than happy.
Drive away a bargain
Supported by a robust UK economy, I expect car sales at Inchcape (LSE: INCH) to keep heading higher well into the future. Indeed, latest Society of Motor Manufacturers and Traders data showed vehicle demand climbed 2.5% year-on-year in May, to 203,585 units.
Against this backdrop, the City expects Inchcape to keep its great growth story rolling with earnings rises of 6% in both 2016 and 2017, producing mega-low P/E readings of 12.1 times and 11.3 times.
And chunky dividend yields of 3.4% and 3.7% for this year and next seal the investment case, in my opinion.
Pub powerhouse
A steady stream of new pub openings continues to power revenues at Marston’s (LSE: MARS) through the roof. But this isn’t the only reason to be cheerful, as demand for the firm’s own-brewed ales like Hobgoblin Gold also continues to surge.
The drinking hole provider is predicted to enjoy earnings rises of 6% and 7% in the years to September 2016 and 2017. These numbers result in ultra-low P/E ratings of 10.8 times and 10 times.
And income-chasers should be impressed by market-mashing dividend yields of 5% and 5.2% for these periods.
Sit up and take notice
Sofa star DFS Furniture (LSE: DFS) is also in great shape to deliver stunning shareholder gains in the years ahead, I believe, helped by steady expansion in Europe and huge investment in its UK distribution network to support domestic sales growth.
The City expects the firm to deliver earnings growth of 3% in the year to July 2016, and a further 14% advance is anticipated for the following period. Consequently DFS sports P/E ratings of 12.7 times and 11.3 times for these years.
And dividend yields of 3.7% and 4.2% for 2016 and 2017 makes the furniture flogger a great pick for income investors too.
