Have £1k to invest today? I’d buy these FTSE 250 growth stocks in a Stocks and Shares ISA

These two FTSE 250 (INDEXFTSE:MCX) shares could deliver strong growth in my opinion.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

While the FTSE 250’s performance in the last few years may have been somewhat disappointing, the mid-cap index continues to offer long-term growth potential.

In fact, its 2% annualised growth since 2015 could indicate that it is now undervalued relative to other major indices. That’s especially the case since it has a dividend yield of 3.2%, which is historically high for the index.

5 Stocks For Trying To Build Wealth After 50

One notable billionaire made 99% of his current wealth after his 50th birthday. And here at The Motley Fool, we believe it is NEVER too late to start trying to build your fortune in the stock market. Our expert Motley Fool analyst team have shortlisted 5 companies that they believe could be a great fit for investors aged 50+ trying to build long-term, diversified portfolios.

Click here to claim your free copy now!

With that in mind, here are two FTSE 250 shares that could be worth buying now within a Stocks and Shares ISA.


International energy services company Hunting (LSE: HTG) released an encouraging trading update on Thursday for the first half of its financial year. It has traded in line with management expectations, with the US onshore completions market showing signs of improvement during the period. There have also been increased activity levels in the North Sea and Middle East, which suggests that improved operating and financial performance may be ahead.

The company expects to report a rise in revenue versus the same period of the previous year, with EBITDA (earnings before interest, tax, depreciation and amortisation) also due to be up on the comparable figure from the prior year.

Although the energy services industry faces an uncertain period, Hunting appears to have an improving outlook. The company is forecast to post a rise in earnings of 23% in the next financial year. Since it trades on a price-to-earnings growth (PEG) ratio of just 0.5, it seems to offer a wide margin of safety. As such, it could be worth buying on a long-term outlook, with there being the potential for volatility due to it being an uncertain period for the oil price.

Tullow Oil

A volatile oil price could also affect the financial prospects for Tullow Oil (LSE: TLW). The company’s recent operational update showed that it is making significant progress in Kenya as it prepares to reach a Final Investment Decision (FID). It is also expecting to commence its drilling campaign in Guyana later in the month, with the spud of the first of three wells planned for 2019.

It remains on track to produce between 90,000 and 98,000 barrels of oil per day (bopd) for the full year. It expects free cash flow to be $550m for the full year, which could help to reduce debt and strengthen its balance sheet.

Of course, should the oil price come under pressure, the company’s financial outlook is likely to suffer. However, at the present time, Tullow Oil is expected to report a rise in earnings of 9% in the next financial year. Since it trades on a PEG ratio of 1.2, it appears to be fairly priced.

As with all oil and gas companies, Tullow Oil is susceptible to a rapidly changing operating environment. But with strong recent performance and a low valuation, its risk/reward ratio could be enticing.

Is this little-known company the next ‘Monster’ IPO?

Right now, this ‘screaming BUY’ stock is trading at a steep discount from its IPO price, but it looks like the sky is the limit in the years ahead.

Because this North American company is the clear leader in its field which is estimated to be worth US$261 BILLION by 2025.

The Motley Fool UK analyst team has just published a comprehensive report that shows you exactly why we believe it has so much upside potential.

But I warn you, you’ll need to act quickly, given how fast this ‘Monster IPO’ is already moving.

Click here to see how you can get a copy of this report for yourself today

Peter Stephens has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

Passive income text with pin graph chart on business table
Investing Articles

These 2 cheap shares dived last week. I’d buy 1 today

Although global stock markets rebounded hard this week, these two cheap shares were left behind in this surge. But I…

Read more »

Female friends enjoying their dessert together at a mall
Investing Articles

Down 40% in 2022, should I buy this 6.3% yield for my Stocks and Shares ISA?

Royal Mail shares have sold off aggressively due to lower parcel volumes and higher-than-expected inflation. Time to add them to…

Read more »

A person holding onto a fan of twenty pound notes
Investing Articles

3 cheap shares with dividend yields of up to 9%

These three cheap FTSE 250 shares all offer market-thrashing dividend yields of up to 8.7% a year. But which would…

Read more »

Twenty pound notes in back pocket of jeans
Investing Articles

3 passive income ideas I’m using today

Our writer shares three passive income ideas he's already using. They're dividend shares -- and he'd consider buying more of…

Read more »

Close-up of British bank notes
Investing Articles

Is now a good time to buy dividend shares?

As economic pressures increase, concerns are growing over dividend shares. Here's why I think it's right to buy now, not…

Read more »

Middle age senior woman sitting at the table at home working using computer laptop clueless and confused expression with arms and hands raised.
Investing Articles

Is now a good time to buy UK stocks?

Markets remain volatile but this Fool doesn't care. He's busy buying great UK stocks on the cheap.

Read more »

Hand flipping wooden cubes for change wording" Panic " to " Calm".
Investing Articles

A top-quality growth stock to buy on the dip

Growth stocks have sunk this year, with inflationary pressures being the primary reason. Here's one that looks unfairly beaten-down.

Read more »

Gold bullion on a chart
Investing Articles

How I’m protecting my portfolio from a stock market crash in 2022

I am investing in this asset class to protect my portfolio from high inflation, slower growth, or a stock market…

Read more »