2 terrifically cheap FTSE 250 stocks to consider this October!

Royston Wild reckons these rebounding FTSE 250 shares still look cheap at current prices. Here’s why bargain hunters should give them a close look.

| More on:

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.

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 think these FTSE 250 stocks could be too cheap to miss today. Here’s why.

Home comforts

Housebuilders like Bellway (LSE:BWY) have surged in value in 2024, with falling interest rates and improving buyer confidence helping home sales rebound from recent troughs.

Encouragingly this upward trend remains in tact. According to Halifax today (7 October), the UK average house price reached £293,399 in September. This was just below the record peak of £293,507 struck before the housing market slumped around two years ago.

Should you invest £1,000 in B&M 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 B&M made the list?

See the 6 stocks

Prices are flying again due to dropping mortgage costs and good wage growth. With the Bank of England (BoE) expected to keep cutting interest rates through the next 12-18 months, too, housebuilders should go from strength to strength.

Created with Highcharts 11.4.3Bellway P.l.c. PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

Bellway’s share price is up 22% since the start of the year. I think it could spike further when full-year results are released next week (15 October), too, when the company advises of the current state of the market. At its last update in August, it said its weekly private reservation rate per outlet was up 10.9% in the 12 months to June.

There are risks here, of course. A sudden pick-up in inflation could prompt the BoE to dial back its plans for interest rates, hitting home sales in the process. Rising build costs also remains a significant threat across the construction industry.

Still, I think Bellway remains an attractive value stock to buy right now. It trades on a forward price-to-earnings growth (PEG) ratio of 0.8. Any sub-1 reading suggests a stock is undervalued.

Playing a China recovery

Investing in stocks that have a high dependence on China has been a miserable experience for many. My decision to buy Asia-focused Prudential‘s shares in 2020 has spectacularly failed to pay off so far.

But market sentiment seems to be shifting in favour of companies with large Chinese exposure, as Prudential’s recovering share price shows. For investors looking for recovery stocks, now could be a good time to consider stocks like these.

The Fidelity China Special Situations (LSE:FCSS) investment trust is one FTSE 250 asset on my watchlist. Like The Pru, it’s also rebounded strongly in price recently, as the chart shows.

Created with Highcharts 11.4.3Fidelity China Special Situations Plc + Prudential Plc PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

However, at 247.5p per share, it still trades at a meaty 10.7% discount to its net asset value (NAV) per share of 277.1p.

Trusts like this spread capital across a wide range of companies, giving them access to many growth opportunities while allowing them to manage risk. In total, it has holdings in around 100 large, medium, and small Chinese firms, including familiar names like Tencent Holdings, Ping An Insurance, and HiSense.

Look, there’s no guarantee that China’s economy is past the worst. Indeed, data from the Asian powerhouse remains frustratingly patchy. However, with lawmakers accelerating stimulus measures to revive growth, things could be looking up in the emerging market, and therefore for Fidelity’s trust.

Indeed, with China’s rising middle class driving domestic consumption, and technological innovation steadily improving, the long-term outlook there is pretty bright in my opinion.

Should you buy B&M shares today?

Before you decide, please take a moment to review this first.

Because my colleague Mark Rogers – The Motley Fool UK’s Director of Investing – has released this special report.

It’s called ‘5 Stocks for Trying to Build Wealth After 50’.

And it’s yours, free.

Of course, the decade ahead looks hazardous. What with inflation recently hitting 40-year highs, a ‘cost of living crisis’ and threat of a new Cold War, knowing where to invest has never been trickier.

And yet, despite the UK stock market recently hitting a new all-time high, Mark and his team think many shares still trade at a substantial discount, offering savvy investors plenty of potential opportunities to strike.

That’s why now could be an ideal time to secure this valuable investment research.

Mark’s ‘Foolish’ analysts have scoured the markets low and high.

This special report reveals 5 of his favourite long-term ‘Buys’.

Please, don’t make any big decisions before seeing them.

Claim your free copy now

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 positions in Prudential Plc. The Motley Fool UK has recommended Prudential 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

artificial intelligence investing algorithms
Investing Articles

Up 272% in just a year, is Palantir stock just getting started?

This writer recognises that Palantir has grown its business very well -- but does the stock price offer him an…

Read more »

Runner standing at the starting point with 2025 year for starting in new year 2025 to achieve business planing and success concept.
Investing Articles

Up 50%? The Aston Martin share price forecast is mind-blowing! 

If analysts are right, the Aston Aston Martin share price could absolutely rocket in the year ahead. Harvey Jones says…

Read more »

Investing Articles

As the S&P 500 drops, here are 2 Stocks and Shares ISA holdings I’m watching

Our writer has different views on how President Trump's tariffs might affect these two US holdings in his Stocks and…

Read more »

Surprised Black girl holding teddy bear toy on Christmas
Investing Articles

£10,000 invested in Tesla stock at Christmas is now worth…

Tesla stock has been one of best-performing investments of the past decade. But things haven't gone to plan for investors…

Read more »

Investing Articles

Up 279% in 5 years, could Meta stock keep soaring?

Meta stock has more than tripled in five years. This writer sees lots to like about the business but also…

Read more »

Pink 3D image of the numbers '2025' growing in size
Investing Articles

25% total return in a year? Is now the perfect time to buy BP shares?

BP shares are on the front line of today's global economic and political uncertainty but analysts think they can still…

Read more »

Affectionate Asian senior mother and daughter using smartphone together at home, smiling joyfully
Investing Articles

With Cash ISA changes coming, could now be the time to consider buying shares?

Changes to the Cash ISA could lead to greater investment in the stock market. This could be a good thing…

Read more »

Investing Articles

These FTSE 100 dividend shares just got cheaper, thanks to President Trump!

Investors buying dividend shares can lock in bigger long-term yields when share prices take a tumble. These two just did…

Read more »