The FTSE 250 is bursting full of exciting companies that could be great additions to my long-term portfolio. I have been searching the index for the very best growth stocks to buy and hold over a long period of time. Both of these firms, Hochschild Mining (LSE:HOC) and National Express (LSE:NEX), exhibit strong growth and are performing well in the current environment. Why am I adding these two businesses to my portfolio this month? Let’s take a closer look.
Growth stock #1: A FTSE 250 silver miner
Hochschild Mining is a company specialising in the mining and production of silver and gold. It operates across Argentina, Chile, and Peru in South America. Currently trading at 118.8p, it is down nearly 40% in the past year.
Between 2017 and 2021, the firm’s revenue increased from $722m to $811m. What’s more, profit before tax grew markedly from $64m to $137m. It is encouraging that this business is performing for its shareholders year in, year out.
It should be noted, however, that past performance is not necessarily indicative of future performance.
The company is also currently benefiting from higher precious metals prices, driven by global market instability.
However, production fell for the three months to 31 March from 7.3m silver equivalent ounces to 5.8m. This was mainly caused by pandemic-related absences and I think this problem could subside in the near future. Despite this, the firm maintained its annual guidance.
Investment bank Berenberg also increased its price target for Hockschild shares from 130p to 160p, because the stock provides exposure to the strong performance of precious metals.
Growth stock #2: National Express
The second company is National Express, a public transport business operating across the UK, Europe, North America, North Africa, and the Middle East. It currently trades at 250p.
The firm rebounded very strongly from the pandemic. In 2020, it slumped to a £444m loss before tax. By the end of 2021, however, this had narrowed to a £84m loss before tax.
What’s more, revenue climbed from £1.9bn to £2.1bn over the same period.
For the three months to 31 March, the company reported that revenue had hit pre-pandemic levels once again, a 30% increase year on year.
It should be noted, however, that any future Covid variant could have a negative impact on the share price.
Additionally, it stated that fuel was 100% hedged for 2022, with 69% and 33% hedging rates for 2023 and 2024, respectively. This could mean that National Express largely avoids the higher fuel costs that have arisen from surging oil prices.
Despite this, Berenberg lowered its price target from 340p to 300p, because profit margins were difficult to define in advance of National Express’ potential acquisition of Stagecoach.
Overall, these two businesses have worked hard to continue growing. They could be strong additions to my portfolio over the long term and I will buying shares in both this month.
