Down 10% or more, I think these FTSE 250 shares are brilliant bargains!

Looking for cheap stocks to buy following recent stock market volatility? Here are two FTSE 250 value shares I think are worth close inspection.

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Despite recent volatility, the FTSE 250 index of shares has risen 1.6% in the past three months. This takes total gains in the year to date to 7%.

As you’d expect, not every stock has risen in that time. Even a number of top-quality stocks have slumped in value recently.

I’m looking to capitalise on this by buying them for a song today and selling them for much more later down the line. Here are two of my favourites right now.

Should you invest £1,000 in Bank of Georgia right now?

When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets. And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Bank of Georgia made the list?

See the 6 stocks

SSP Group

Created with Highcharts 11.4.3SSP Group PriceZoom1M3M6MYTD1Y5Y10YALL6 Apr 20203 Apr 2025Zoom ▾Jul '20Jan '21Jul '21Jan '22Jul '22Jan '23Jul '23Jan '24Jul '24Jan '252021202120222022202320232024202420252025100150200250300350400www.fool.co.uk

At first glance, SSP Group (LSE:SSPG) doesn’t look like a natural bargain. At 166p per share, the firm — which sells food and drink from outlets in transport hubs, like airports and railway stations — trades on a forward price-to-earnings (P/E) ratio of 16.7 times.

However, SSP’s price-to-earnings growth (PEG) multiple suggests that this is actually a pretty cheap stock. At 0.3, this sits well inside value territory of one and below.

The company’s share price has dropped 19% over the past three months. This is thanks to a mix of problems related to its continental operations, including strike action on France and Germany’s railways, and unfavourable currency movements.

However, most recent financials in July showed sales picking up momentum, as some earlier issues unwound and leisure-related travel picked up. With eurozone growth tipped to accelerate over the next year, I think SSP’s share price could rebound if (as I expect) revenues remain on their impressive trajectory.

The FTSE 250 firm faces high levels of competition. But I’m confident that, over the long haul, it should still grow earnings strongly. It stands to benefit from rising traveller numbers and steps to increase its geographical footprint.

Panmure Liberum analysts expect SSP to spend £160m on acquisitions this year alone.

Bank of Georgia Group

Created with Highcharts 11.4.3Lion Finance Group Plc PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

Bank of Georgia‘s (LSE:BGEO) shares are down 13% during the past three months. In fact, they’ve declined sharply from April’s record peaks as worries over civil unrest and political turbulence in the Eurasian country have grown.

Such concerns can be typical of emerging markets stocks like these. Yet on balance, I think the threat that these developments pose to the bank’s earnings are more than reflected by its rock-bottom valuation.

For 2024, Bank of Georgia’s shares trade on a forward P/E ratio of 3.4 times. Furthermore, they also deal on a corresponding PEG multiple of 0.1, based on their market value of £40.85.

At these prices, I’m tempted to think that the benefits of buying the banking giant outweigh the risks. Demand for financial services products in Georgia is soaring thanks to rising wealth levels. And given low product penetration levels, there remains plenty of scope for market growth.

Latest financials from industry rival TBC Bank underlined the banking sector’s rapid growth. Operating income and pre-tax profit there leapt 16% and 12%, respectively, in the second quarter.

As an added sweetener, the prospective dividend yield on Bank of Georgia shares stands at a gigantic 7%. I think it could be one of the best cheap shares on the FTSE 250 to consider today.

Should you invest £1,000 in Bank of Georgia right now?

When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Bank of Georgia made the list?

See the 6 stocks

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.

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended SSP Group. 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.

Like buying £1 for 51p

This seems ridiculous, but we almost never see shares looking this cheap. Yet this recent ‘Best Buy Now’ has a price/book ratio of 0.51. In plain English, this means that investors effectively get in on a business that holds £1 of assets for every 51p they invest!

Of course, this is the stock market where money is always at risk — these valuations can change and there are no guarantees. But some risks are a LOT more interesting than others, and at The Motley Fool we believe this company is amongst them.

What’s more, it currently boasts a stellar dividend yield of around 8.5%, and right now it’s possible for investors to jump aboard at near-historic lows. Want to get the name for yourself?

See the full investment case

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