2 FTSE 250 bargain shares to consider in July

The FTSE 250 index of shares remains packed with brilliant bargains despite recent strength. Here are two Royston Wild has his eye on.

| More on:
Businesswoman calculating finances in an office

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.

sdf

The FTSE 250 index of shares rose 10% between April and June. This represented its best quarterly performance for four years. At 21,590 points, its now up almost 5% since the start of the year.

Demand for British mid-cap growth shares continues to soar as investors around the world search for cheap shares after years of underperformance

Here are two FTSE 250 shares I think offer great value, despite already punching strong gains in 2025.

Hit the target

Property stock Supermarket Income REIT (LSE:SUPR) has risen almost a quarter in value this year. It’s risen on hopes of sustained interest rate cuts that will lower its borrowing costs and boost net asset values (NAVs).

Yet despite this rise, it still offers a brilliant, market-beating 7.3% forward dividend yield. Investors are naturally drawn to real estate investment trusts (REITs) for their dividend potential — under sector rules, at least 90% of annual earnings must be paid out.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice.

The company enjoys reliable cash flows that have made it a dependable pick for dividend investors. Not only does it operate in a highly robust sector (food retail). It also lets out its properties to the industry’s largest chains, which all but eliminates occupancy and rent collection issues.

Indeed, almost three-quarters (73.5%, to be exact) of total rent rolls come from FTSE 100 members Tesco and Sainsbury‘s, the UK’s biggest and second-largest grocers, respectively. Supermarket Income REIT’s other blue-chip tenants include Morrisons, Asda, Aldi, and Carrefour in France, which provides it with a little international diversification.

This isn’t to say that threats don’t remain, of course. All the signs point to further interest rate cuts, but any inflationary pick-up (for instance, on an oil price shock) could limit further action by the Bank of England. In this event the trust’s share price could do a dramatic about-turn.

But on balance, I think it’s a top passive income stock to consider. One final thing: it still trades at a near-5% discount to its NAV per share of 89p.

Hear it roar

Worries over the geopolitical landscape in Eastern Europe and Eurasia persist. The upheaval in Ukraine since Russia’s invasion of 2022 shows that investors should be careful before investing in often-volatile emerging regions.

Yet these tensions haven’t stopped Lion Finance (LSE:BGEO) from printing stunning price gains in 2025. The firm — which changed its name from Bank of Georgia earlier this year — has risen 47% in value since 1 January.

These substantial gains could be explained by the FTSE 250 stock’s extremely low valuation that attracted bargain chasers. Even today, the bank trades on a forward price-to-earnings (P/E) ratio of just 5.3 times.

Adding an extra sweetener, Lion Finance’s corresponding dividend yield is an index-beating 4.2%.

At these prices, I think the bank deserves serious consideration despite those aforementioned threats. Georgia’s banking sector is rapidly expanding as the economy there balloons. And as one of the country’s big two operators (alongside TBC Bank), Lion Finance is watching profits explode.

Latest financials showed its loan book grew 23.2% in the first quarter. This in turn drove pre-tax profit 40.7% higher.

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 J Sainsbury Plc and Tesco 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

A pastel colored growing graph with rising rocket.
Investing Articles

Here’s how long it’s taken £1k of Nvidia stock to turn into £10k today!

Our writer explains how money invested in Nvidia stock less than three years ago has grown in value over tenfold…

Read more »

Thoughtful man using his phone while riding on a train and looking through the window
US Stock

3 red flags I’m seeing right now for the S&P 500

Jon Smith points out some concerns he has with the S&P 500 at current levels and picks one stock he's…

Read more »

UK financial background: share prices and stock graph overlaid on an image of the Union Jack
Investing Articles

UK dividend shares are outperforming US tech stocks!

UK dividend shares aren’t just for passive income investors. Over the last 12 months, they’ve been outperforming their US tech…

Read more »

DIVIDEND YIELD text written on a notebook with chart
US Stock

Here’s how much passive income an investor could make with £2k in Meta stock

Jon Smith looks at Meta stock from a different angle to normal, considering it as an option for an investor's…

Read more »

Young black colleagues high-fiving each other at work
Investing Articles

1 of my top UK shares is up 15% in a day! Is it still a buy for me?

Celebrus shares are soaring after strong full-year results. At a P/E ratio below 13, is it one of the best…

Read more »

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

£10,000 invested in Jet2 shares 2 years ago is now worth…

Jet2 shares have surged in recent months and finally appear to be pushing towards fair value. Dr James Fox shares…

Read more »

piggy bank, searching with binoculars
Investing Articles

This FTSE 100 blue-chip could rise 26% in 12 months, according to brokers

While this FTSE 100 dividend stock has put investors through the wringer in recent years, some analysts see brighter skies…

Read more »

Businessman hand stacking money coins with virtual percentage icons
Investing Articles

A 3-step passive income strategy to target major wealth

Want to invest in the stock market to build up a passive income stream? There's no fiendlishly complex multi-step mystique…

Read more »