The Motley Fool

These 5 FTSE 250 stocks are up 50%+ this year! Here’s what I’d do now

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.

Chart displaying growth
Image source: Getty Images.

While the FTSE 100 gets most of the attention, investors shouldn’t overlook FTSE 250 stocks, with the index hitting an all-time high of 22,204.89 last week.

Over the last 12 months, FTSE 250 stocks are up by 38%, double the growth of the FTSE 100. Danni Hewson, financial analyst at AJ Bell, says it has benefited from the UK’s “supercharged vaccine rollout.” Some have benefited more than others.

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!

Best performing FTSE 250 stock this year is GameSys Group, up a thumping 70.1%. This sizzling performance has been driven by takeover talk. US firm Bally’s is sizing up the business for £2bn, equivalent to £18.50 a share.

The top performing index

The stock jumped almost 20% on the news and now trades at £19.24, as investors gamble on a rival bid pushing the price higher. Given the thin gains if that happens and large potential drop if the bid falls, I’m steering clear.

Next best-performing FTSE 250 stock is Tullow Oil, up a whopping 68.9%. I’m glad to see it powering upwards after a long dismal run. A decade ago, Tullow traded at around 1,250p a share. Despite the rebound, it still trades below 50p today.

Tullow was hammered by last year’s plunging oil price, with profits down 47% to $403m. It’s now benefiting from the rebound. Sentiment was also lifted by a new $1.7bn facility negotiated in February, while selling its Equatorial Guinea and Dussafu assets to Panoro Energy has trimmed debt. It has embarked on a multi-year, multi-well-drilling programme in Ghana.

While I’m glad to see Tullow bounce back, the oil exploration game is too risky for me. Especially since the oil price could be becalmed from here, with Morgan Stanley predicting it’ll be stuck in the $60 range all summer.

Here’s an even more dramatic recovery play. Cineworld Group is the third best-performing stock on the FTSE 250, up 64.7%, AJ Bell figures show. Measured over six months, it’s up 248%. Investors who chanced all on the bombed-out leisure and entertainment sector have been amply rewarded. Sadly, I decided it was too risky for me and just have to accept that I missed the boat on this one. Cineworld’s future is still far from secure.

I’d consider these two FTSE 250 stocks

Facilities management firm Mitie Group is fourth best performer, up 59.3%. It started the year well, reporting a 6.7% rise in Q3 organic revenues to £573.9m, plus a slew of new contract wins. Management fuelled investor optimism by predicting the second half of the year will be better than the first.

Mitie dropped last year’s dividend as aviation and financial services customers struggled, and office occupancy fell. That may reverse, but slowly. One to watch if the recovery beds in. 

In fifth place, financial services company Just Group is up 50.4%. I tipped this stock last year so I was glad to see full-year total revenues jump 21% to £4.64bn. Just had to build its capital coverage to meet stricter regulatory demands on equity release mortgages, and is now enjoying the fruits of its labours.

Financial services is a competitive sector. The Just share price may be due a breather after recent success. It remains one of my favourite FTSE 250 stocks though.

For fast share price growth, I'd check this out.

The high-calibre small-cap stock flying under the City’s radar

Adventurous investors like you won’t want to miss out on what could be a truly astonishing opportunity…

You see, over the past three years, this AIM-listed company has been quietly powering ahead… rewarding its shareholders with generous share price growth thanks to a carefully orchestrated ‘buy and build’ strategy.

And with a first-class management team at the helm, a proven, well-executed business model, plus market-leading positions in high-margin, niche products… our analysts believe there’s still plenty more potential growth in the pipeline.

Here’s your chance to discover exactly what has got our Motley Fool UK investment team all hot-under-the-collar about this tiny £350+ million enterprise… inside a specially prepared free investment report.

But here’s the really exciting part… right now, we believe many UK investors have quite simply never heard of this company before!

Click here to claim your copy of this special investment report — and we’ll tell you the name of this Top Small-Cap Stock… free of charge!

Harvey Jones 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.

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.