The FTSE 250 index of mid-cap shares is up a healthy 6.2% so far in 2025. That’s pretty good considering the severe headwinds facing the UK and global economies. But not all of the indice’s members have enjoyed stellar price gains.
For various reasons, the following FTSE 250 stocks have dropped a quarter in value or more in the year to date. I think this represents an attractive dip-buying opportunity that savvy investors may wish to research further.
Bloomsbury: top buying opportunity?
Powered by the Harry Potter franchise, Bloomsbury Publishing (LSE:BMY) shares have risen strongly over time. But signs of weakness more recently have pulled the publisher sharply lower — it’s down 27.7% since 1 January alone.
The chief problem I see is weakness at its academic publishing division. It’s facing two issues: “current UK and US budgetary pressures and the accelerated shift from print to digital”, as the firm described in May’s full-year update. These pressures pushed academic organic sales 10% lower in the 12 months to February.
Risks remain, but I believe Bloomsbury’s powerhouse consumer unit — and more specifically its fantasy and science fiction catalogue — makes it a great stock to consider. Harry Potter remains a colossal money spinner decades after its release. Genre heavyweight Sarah J Maas has roughly half a dozen more books to come too, boosting the company’s packed pipeline of new titles.
I think Bloomsbury’s recent performance is a rare bump, and I’m confident a busier release schedule following a disappointing last year will help it turn things around. Investment in artificial intelligence (AI) could also revive academic demand.
Today, it trades on a forward-looking price-to-earnings (P/E) ratio of 12.7 times. That’s well below the five-year average of 17.4 times and I think makes it a brilliant recovery stock to think about.
Greggs: shares too cheap to ignore?
Without doubt, buying Greggs’ (LSE:GRG) shares has proven a disaster for me. Since opening a position in late November, the baker has fallen a whopping 40.8% in value.
A series of underwhelming trading statements continuing into 2025 means it’s dropped 43.4% this year too. Consequently, the company’s valuation has toppled — a forward P/E ratio of 12.1 times today is significantly below the 10-year average of 22-23 times.
Greggs could face further turbulence as the cost-of-living crisis endures and consumers cut back. Latest financials showed like-for-like sales growth cooled to just 2.6% between January and June, while operating profit dropped 7.1%, reflecting large expansion costs.
However, I believe Greggs shares are now so cheap that they merit a close look. To my mind, the business still has enormous growth potential as it builds its store network to 3,000 outlets over the next few years, up from 2,649 today.
Focusing this strategy on high footfall transport hubs, as well as plans to increase the number of especially profitable franchise stores on its books, is especially encouraging to me. Greater evening trading, and rising investment in digital and delivery, also bodes well for its recovery.
Indeed, I’m optimistic Greggs’ share price will rebound strongly over time, and that my long-term investing strategy will pay off. With a sharply revised valuation, the baker’s worth serious consideration, in my book.
