As world stock markets crashed last week, the UK’s top index, the FTSE 100, slumped 11.1%. The mid-cap FTSE 250 fared no better, falling in step, with a drop of 11.2%.
In an article earlier today, I looked at the FTSE 100’s 10 biggest fallers. I asked if we should be greedy contrarians, and look to buy these stocks in anticipation of high returns in the longer term. I certainly felt there were some bargain buys in the top index. Here it’s the turn of the FTSE 250.
Falls of up to 28%
The table below shows the 10 biggest fallers, their sectors and current share prices. It also shows their forward price-to-earnings (P/E) ratios and dividend yields.
|
Company |
Sector |
Share price fall (%) |
Current share price (p) |
P/E |
Yield (%) |
|
Playtech
|
Leisure goods |
-28.0 |
250 |
6.0 |
6.9 |
|
SIG |
Construction & materials |
-27.0 |
63 |
13.9 |
4.4 |
|
Premier Oil |
Oil & gas |
-24.4 |
78 |
6.5 |
0.0 |
|
SSP |
Travel & leisure |
-23.9 |
507 |
16.4 |
2.5 |
|
Jupiter Fund Management |
Asset management |
-23.2 |
300 |
11.3 |
7.7 |
|
William Hill
|
Travel & leisure |
-22.6 |
149 |
12.0 |
5.4 |
|
Wizz Air |
Travel & leisure |
-22.5 |
3,415 |
11.1 |
0.0 |
|
Frasers Group |
Retail |
-22.0 |
384 |
13.8 |
0.0 |
|
IWG |
Business support services |
-20.9 |
352 |
30.3 |
2.1 |
|
Hochschild Mining |
Mining |
-20.6 |
160 |
15.4 |
2.1 |
Repeat theme
Big hits to travel & leisure stocks were a big theme of the FTSE 100 fallers. As you can see, we have the same theme in the FTSE 250.
Budget airline Wizz Air was hammered, like its larger Footsie carrier peers. Worldwide operator of food and beverage travel concessions SSP Group was another heavy faller.
Despite the near-term impact of the coronavirus on travel, I like Wizz Air’s balance sheet, margins and longer-term growth prospects. I rate it a ‘buy’ today, and see an opportunity to start building a stake in the company.
SSP told the market on Wednesday it’s seen a sharp fall in sales in China and across the Asia Pacific region. Covering the update, my colleague Paul Summers concluded that “this is one stock firmly on my watchlist as a potential long-term buy.”
Gamble
William Hill made no reference to the coronavirus in its results last week, unlike gambling software firm Playtech that said the outbreak is significantly affecting two of its largest markets, and warned 2020 results are likely to be below the City’s current expectations.
Due to regulatory risk, I’m not sure about gambling stocks right now. However, covering last week’s results, my colleague Kevin Godbold concluded William Hill “could make a decent recovery play.”
Fund manager falls
FTSE 100 asset managers took a beating last week, as crashing markets aren’t generally helpful for them. I’m not surprised Jupiter Fund Management has also fallen heavily. I’ve long felt this one was overvalued against its assets under management. And I’m not sure the valuation is yet attractive enough to interest me.
Mixed bag
Gold and silver prices beat a retreat last week, as did the shares of precious metals miner Hochschild. I think it’s a solid business, and the stock looks very buyable to me at the current level. Natural resources bargain-hunters may also have Premier Oil on their radar.
Elsewhere, serviced offices group IWG still looks richly valued to my eye, Mike Ashley’s Frasers Group isn’t among my favoured retail picks, while an update from construction & materials firm SIG last week was somewhat unsettling. It said both its chief executive and chief financial officer are leaving with immediate effect.
Happy hunting, if you’re in the market for discount stocks!
