2 FTSE 250 stocks I’d buy and hold to 2035

Our writer Royston Wild believes these FTSE 250 growth shares could deliver spectacular returns during the next decade. Here’s why.

| 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.

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.

View of Tower Bridge in Autumn

Image source: Getty Images

There’s no definitive timeframe for how long FTSE 250 investors should hold onto their shares before they consider selling.

The exact period depends on an investor’s personal goals. It’s also subject to a stock’s evolving fortunes over time. A rock-solid company today can transform into a basket case over a few years for a variety of inside and outside factors.

That said, I always buy shares with a view to holding them for at least a decade. This way I can lessen the impact of market volatility on my eventual returns.

Here are two top FTSE 250 shares I’d buy today to hold until the middle of the 2030s, if I had the cash to spare.

Chemring Group

Investing in defence shares could be a secure pick for long-term investors. Lumpy contract timings, supply chain problems, and cost issues can threaten earnings forecasts at times. But improving industry conditions suggest they could enjoy a bright decade ahead.

Take Chemring Group (LSE:CHG), for instance. This business manufactures countermeasures, sensors, and energetics products for military applications. And it has an ambitious plan to double annual revenues to £1bn by 2030.

Defence spending’s risen strongly following Russia’s invasion of Ukraine in 2022. And since then, worries over Chinese expansionism have grown and geopolitical conditions in the Middle East have deteriorated, pushing budgets higher.

Against this tragic backdrop, Chemring says it’s seen “continued strong order intake“, rising to £638m in the year to September, up from £604m a year before. This pushed its closing order book to £1.1bn from £869m previously, with record order books reported across the business.

The number of NATO members hitting defence spending targets has risen fourfold between 2021 and 2024. The number sits at an all-time high of 23 and is poised to keep growing in response to rapid Chinese and Russian rearmament.

And so City analysts expect Chemring’s earnings growth to accelerate over the next two years, at least. Expansion of 6% and 12% is forecast for financial 2025 and 2026 respectively.

NCC Group

NCC Group‘s (LSE:NCC) also tipped to grow earnings rapidly over the next few years. As a supplier of cybersecurity products, it stands to gain from increased global digitalisation and a subsequent rise in hacking and similar attacks.

City analysts think earnings will swell 120% this fiscal year (to May 2025). Rises of 25% and 21% are predicted for financial 2026 and 2027 respectively as well.

Profits here are highly cyclical, with businesses reducing spending on items like software when economic conditions worsen. NCC has suffered in recent years from weakness in North America’s technology sector.

But business is picking up again and could continue as interest rates fall. Revenues of £104m during the four months to September were up 4% year on year.

Fortune Business Insights believes the online security market will expand at a compound annualised rate of 14.3% through to 2032. If accurate, profits at NCC Group could — despite the threat of intense competition — blast through the roof.

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

Calendar showing the date of 5th April on desk in a house
Investing Articles

Investors are rushing to buy these before the Stocks and Shares ISA deadline. Should we join in?

Despite geopolitical troubles causing so much pain in the world, Stocks and Shares ISA investors in the UK are keeping…

Read more »

Mature friends at a dinner party
Investing Articles

How much do you need in a Stocks and Shares ISA for a £10,000 second income?

Ben McPoland highlights a FTSE 100 dividend stock yielding 7% that could contribute nicely to an ISA generating a second…

Read more »

Close-up of a woman holding modern polymer ten, twenty and fifty pound notes.
Investing Articles

How big a Stocks and Shares ISA is needed to target £500 of monthly passive income?

Christopher Ruane explains how a Stocks and Shares ISA could potentially earn someone thousands of pounds in dividends per year.

Read more »

British pound data
Investing Articles

With the stock market down, here are 2 potential ISA bargains to consider right now

When the stock market dips, investors looking at long-term prospects should seek out cheap shares, right? I have my eye…

Read more »

Mature black woman at home texting on her cell phone while sitting on the couch
Investing Articles

Want a £1m Stocks and Shares ISA? Step 1 starts before 5 April

Dr James Fox explains why the Stocks and Shares ISA is an incredible vehicle, and why investors may want to…

Read more »

Happy woman commuting on a train and checking her mobile phone while using headphones
Investing Articles

2 dirt-cheap stocks to consider buying for an ISA portfolio in April

This pair of UK shares are down by double digits in recent months. Ben McPoland sees both as stocks to…

Read more »

Front view photo of a woman using digital tablet in London
Growth Shares

I think this undervalued penny stock has serious potential to outperform

Jon Smith points out a penny stock that's started to rise as the company pushes ahead with a transformation that…

Read more »

Close-up of children holding a planet at the beach
Investing Articles

2 dividend-paying investment trusts to consider for a Stocks and Shares ISA

These two London-listed funds source their dividends globally, offering income investors diversification inside an ISA portfolio.

Read more »