FTSE 250 stocks offer investors a great way to gain exposure to some of the UK’s most exciting companies.
So, with some spare cash, should I be buying these two?
easyJet
It’s been a far from easy journey for easyJet (LSE: EZJ) shareholders in recent times. The stock took a massive hit during the pandemic, with its operations heavily restricted. And while its regained an impressive 32% in the last 12 months, its price is nowhere near the levels it was at pre-2020.
The business recently released an encouraging trading update, which forecasted pre-tax profit of between £440m and £460m. Of this, £120m is expected to be generated from its growing easyJet Holidays business.
On top of that, the company announced it has agreed on a proposal with Airbus to buy more than 150 new short-haul aircraft for delivery from 2029, in addition to purchase rights for a further 100.
As a potential investor, what’s also encouraging to see is that the company is set to reinstate its dividend payments. In terms of making progress, this is a stellar sign.
While the outlook for easyJet looks positive, inflation is still a risk. Consumers looking to cut down spending may decide to skip plans for a holiday. With oil prices steadily creeping up, this will also eat away at the business’s bottom line as fuel costs rise.
However, at its current price, I could be tempted into buying some shares. easyJet has momentum. And despite multiple challenges, its recovery highlights its strength. With its share price down nearly 10% this week, I think now is a chance to buy. If I had some cash, I’d be willing to open a position.
Safestore
It was only recently that I decided to add Safestore (LSE: SAFE) to my portfolio. But I’m already considering buying some more shares.
It’s been a torrid year for the stock, falling by over 25%. In the last 12 months, it’s down by around 10%. However, despite this poor performance, I’m not too fussed. I sense value.
Overall, I think there’s plenty to like about Safestore. Firstly, I think the stock looks undervalued, with a price-to-earnings ratio of just 5.5.
In addition, I also like the passive income opportunity it offers. Generating passive income is a great way for investors to make extra cash with minimal effort. And with a dividend yield of over 4%, Safestore is a great option. With the last few years seeing its dividend grow by over 400%, this further shows the potential the stock has.
Of course, I do have my concerns. Heavy debt could be an issue. Interest rates will remain high for the foreseeable future, and this could impact the business as it finances these liabilities. Attached to this, high interest rates impacting the price of property could also effect the business.
However, with plans for European expansion, I think for the long run the stock could be a smart buy. In the weeks ahead I’ll be looking to add to my position with any spare cash I have.
