The Motley Fool

Forget a cash ISA and Bitcoin! I’d aim to make a million with these 2 FTSE 250 shares

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.

An airplane on a runway
Image source: Getty Images.

Finding a worthwhile balance between risk and reward can be a challenge for investors. Cash ISAs, for example, may have little risk, but also offer limited return. And while Bitcoin could surge higher, it may also decline sharply as it did in 2018.

As such, buying FTSE 250 shares in order to make a million could be a worthwhile move. Certainly, they may come with significant risks during downturns. But as the index’s track record shows, long-term growth appears to be relatively likely – especially for investors who are able to buy shares at discounts to their intrinsic values.

5 Stocks For Trying To Build Wealth After 50

Markets around the world are reeling from the coronavirus pandemic… and with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.

But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be a daunting prospect during such unprecedented times.

Fortunately, The Motley Fool UK analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global upheaval…

We’re sharing the names in a special FREE investing report that you can download today. And if you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio.

Click here to claim your free copy now!

Therefore, now could be the right time to buy these two FTSE 250 stocks while they appear to trade on low valuations.

easyJet

A recent addition to the FTSE 250 following its demotion from the FTSE 100, easyJet (LSE: EZJ) has experienced a torrid time in terms of its share price performance. Due to risks facing the wider airline sector, its shares now trade on a price-to-earnings (P/E) ratio of just 6.9. This suggests that investors may have priced in the weak consumer sentiment that faces airlines and that could mean financial forecasts are subject to downgrades in the near term.

However, with the airline industry being cyclical, now could be the right time to buy shares in easyJet. It has a relatively strong balance sheet and appears to have been less affected by recent difficulties for the industry than many of its sector peers. Furthermore, recent updates from the business have shown that it is on track to meet guidance for the current year.

Therefore, while easyJet’s shares may be unpopular at the present time, their risk/reward ratio suggests that they could help you to build a seven-figure portfolio over the long run.

Bellway

Also unpopular among investors at the present time is FTSE 250-listed housebuilder Bellway (LSE: BWY). As with easyJet, it is experiencing an uncertain outlook, with Brexit-related risks in particular causing investors to become increasingly cautious about the housebuilding sector.

Bellway, though, has reported resilient trading conditions in its recent updates. And while interest rates are expected to rise over the coming years, housing affordability may remain high due to the Bank of England being forecast to adopt a generally dovish stance towards interest rates.

Since Bellway trades on a P/E ratio of 7.2, it seems to offer good value for money at the present time compared to the wider FTSE 250. The shortage of housing that faces a growing UK population means the wider housebuilding industry may enjoy more positive trading conditions than the stock market is pricing in at the present time.

As such, this could make the stock a highly appealing purchase for the long run, with its risk/reward ratio appearing to offer a favourable investment opportunity.

One Killer Stock For The Cybersecurity Surge

Cybersecurity is surging, with experts predicting that the cybersecurity market will reach US$366 billion by 2028more than double what it is today!

And with that kind of growth, this North American company stands to be the biggest winner.

Because their patented “self-repairing” technology is changing the cybersecurity landscape as we know it…

We think it has the potential to become the next famous tech success story.

In fact, we think it could become as big… or even BIGGER than Shopify.

Click here to see how you can uncover the name of this North American stock that’s taking over Silicon Valley, one device at a time…

Peter Stephens owns shares of easyJet. 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.

Our 6 'Best Buys Now' Shares

Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.

So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee.

Simply click below to discover how you can take advantage of this.