Planning for the next bull market isn’t easy when economic confidence is low. But this is exactly why returns can be so great when stability comes back. With this in mind, here are three FTSE 250 stocks that could eventually soar in value and might be worth considering now.
The worst might be over
Burberry‘s (LSE: BRBY) woes aren’t a secret. A cost-of-living crisis brought on by high inflation has crushed sales, particularly in key regions such as Asia. Subsequent profit warnings have led to a management shake-up and the suspension of dividends.
Naturally, this sort of form was never going to be good news for the share price. As I type on 23 April, the stock has lost nearly 40% of value in the last 12 months. But spare a thought for anyone buying at the peak in April 2023. They will have seen their stake drop by roughly 75%!
As stomach-churning as these numbers are, Burberry’s troubles reflect a broader global slowdown in the luxury sector. Even French giant LVMH is having a torrid time. But companies reliant on discretionary spending are just the sort to bounce high when consumer confidence returns.
A recovery won’t come overnight. There’s certainly no guarantee that new(ish) CEO Joshua Schulman’s plan to re-focus on heritage products such as outerwear and scarves will pay off either.
But I don’t see how an iconic survivor brand like this can remain in the doldrums forever.
Time to ‘buy the dip’?
For a bit of diversification, Allianz Technology Trust (LSE:ATT) also looks interesting. Its shares are down 20% in 2025 so far.
Again, this drop isn’t unwarranted. President Trump’s on/off approach to tariffs has hit some of the trust’s major holdings — Apple, Nvidia and Meta Platforms — particularly hard. A disappointing US earnings season and ongoing concerns that the world’s largest economy faces a recession could push the shares even lower.
Then again, this trust has a track record of recovering strongly once sentiment shifts. The shares dived to near 200p a pop at the beginning of 2023 as interest rates rose and the appeal of glitzy growth shares sank. Fast-forward to February this year and they sat around the 450p mark.
Will history repeat itself? No one knows for sure. But I suspect our desire for progress and convenience will mean that technology continues to dominate our lives, even if the major players chop and change.
We’ve been here before
A final mid-cap that’s been battered of late is Domino’s Pizza (LSE: DOM). The shift in consumer spending has led to a slowdown in orders, sending the share price downwards. Cost pressures have only compounded matters.
Somewhat unsurprisingly, the company now features near the top of the list when it comes to the most shorted stocks on the UK market.
On a more optimistic note, expectations are arguably so low that it might only take a small earnings surprise to bring out the buyers. Meanwhile, Domino’s has been improving its digital platform and looking to increase its store count significantly over the next few years. There’s a dividend yield of 4.2% too.
This is another stock that previously burst back to form as inflation began to retreat. If/when evidence shows that purse strings are being loosened, the shares might fly again.
