I think these 3 cheap FTSE 250 stocks could start climbing in April

If 2024 is the year the FTSE 250 storms ahead, can these three stocks lead the way? There’s news from all of them coming our way soon.

| More on:

Image source: Getty Images

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

I’m seeing signs that the FTSE 250 might be set for a new growth spell, ahead of the FTSE 100. And there are also some updates coming our way from stocks I like the look of.


While an improving outlook for defence stocks has helped send Rolls-Royce Holdings into orbit, QinetiQ (LSE: QQ.) is up just 12% in the past 12 months.

A price-to-earnings (P/E) ratio of 15 might not look screaming cheap. But it could drop to 12 by 2026 if earnings grow as predicted.

A 2.1% forward dividend yield also seems mediocre, but that could reach 2.5% in the same time. And we’re looking at very strong cover by earnings of around three times.

I think the main risk is that we might have a few short years of boosted business. But once the West’s armouries are full, a few dry years might follow.

But I’m definitely considering it. There’s a Q4 trading update due on 16 April, ahead of FY results on 23 May.


We should have a full-year trading update from Currys (LSE: CURY) on 5 May. But I’m including it here as February’s buyout bid should keep it in investors’ minds in April.

The electronics retailer saw its shares leap in response to the bid. And when it didn’t pan out, the price only fell back part of the way.

A bid means at least someone thinks the stock is cheap enough to try to get hold of it all.

And I think the Currys share price is too low too. Forecasts show a profit in 2024, followed by a 70% earnings rise by 2026. The City also sees the dividend coming back, and reaching 3.3% in that time.

There’s talk of a possible bidding war now, with China’s JD.com in the running. I wouldn’t buy on such hopes, but I might buy on Currys’ trading outlook.

The stock could fall back if no more bids show up, and could even resume its long-term fall. But it might boost the long-term attraction.


What better way to profit from a property market recovery than the humble brick? I’m talking of brick maker Ibstock (LSE: IBST), with a Q1 update due on 25 April.

The share price has picked up a bit in the past six months, but it’s still well down over five years.

The firm saw profits fall in 2023, which is no surprise. And it sees further pressure in 2024. But year-end net debt of £101m looks fine to me.

And CEO Joe Hudson expects Ibstock to get back to growth in the medium term.

My main fear is that a forward P/E of 29 might be a bit too high, and it only drops to 16 on 2025 forecasts.

A forecast dividend yield of 4% by 2025 might not be enough to justify that valuation, even if it’s well covered by earnings.

But if we’re in for a new decade of growth once interest rates come down, I think this could be a buy candidate for long-term investors.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Alan Oscroft has no position in any of the shares mentioned. The Motley Fool UK has recommended Ibstock Plc, QinetiQ Group Plc, and Rolls-Royce Plc. 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.

More on Investing Articles

Young Black man sat in front of laptop while wearing headphones
Investing Articles

Investing just £10 a day in UK stocks could bag me a passive income stream of £267 a week!

This Fool explains how investing in UK stocks rather than buying a couple of takeaway coffees a day could help…

Read more »

Investing Articles

A cheap stock to consider buying as the FTSE 100 hits all-time highs

Roland Head explains why the FTSE 100 probably isn’t expensive and highlights a cheap dividend share to consider buying today.

Read more »

Investing Articles

If I were retiring tomorrow, I’d snap up these 3 passive income stocks!

Our writer was recently asked which passive income stocks she’d be happy to buy if she were to retire tomorrow.…

Read more »

Investing Articles

As the FTSE 100 hits an all-time high, are the days of cheap shares coming to an end?

The signs suggest that confidence and optimism are finally getting the FTSE 100 back on track, as the index hits…

Read more »

Investing Articles

Which FTSE 100 stocks could benefit after the UK’s premier index reaches all-time highs?

As the FTSE 100 hit all-time highs yesterday, our writer details which stocks could be primed to climb upwards.

Read more »

Investing Articles

Down massively in 2024 so far, is there worse to come for Tesla stock?

Tesla stock has been been stuck in reverse gear. Will the latest earnings announcement see the share price continue to…

Read more »

Young Caucasian woman with pink her studying from her laptop screen
Dividend Shares

These 2 dividend stocks are getting way too cheap

Jon Smith looks at different financial metrics to prove that some dividend stocks are undervalued at the moment and could…

Read more »

Investing Articles

Is the JD Sports share price set to explode?

Christopher Ruane considers why the JD Sports share price has done little over the past five years, even though sales…

Read more »