The FTSE 250‘s fallen sharply in recent weeks, leaving many top stocks looking dirt cheap. Dozens of the index’s great growth shares now offer great value based on expected earnings. But that’s not all — many dividend-paying stocks now offer excellent dividend yields.
With a fresh £20,000 allowance now available for Stocks and Shares ISA investors, here are four FTSE 250 bargain shares to consider.
Bellway
Bellway (LSE:BWY) shares have plunged 20% over the past month. A slight markdown to profits forecasts in late March hasn’t helped the housebuilder’s cause. But what’s really sent it lower is the Iran war and its potential impact on inflation and interest rates.
Things could remain bumpy for the whole housebuilding sector. But could now be a dip buying opportunity to consider? I think so. Bellway’s price-to-earnings-to-growth (PEG) ratio has plunged to 0.3 for this financial year (to July 2027). It remains below the value watermark of one through to financial 2029, too.
I expect the builder’s shares to bounce back over time, propelled by rising newbuild demand as the UK population grows. The government reckons 300,000 new homes are needed every year to meet this demographic challenge.
Ibstock
This enormous structural opportunity should also help brickmaker Ibstock‘s shares recover. They’ve dropped 6% over one month, reflecting worries over a cooling housing market.
It’s not just the prospect of a new housebuilding revolution I’m excited by. As an investor in this FTSE 250 share myself, there’s also considerable revenues potential from the rental, maintenance, and improvement market (RMI).
How so? The UK’s housing stock is one of the oldest in Europe. So Ibstock’s services should experience high demand as homeowners and landlords invest to renew their properties.
Ibstock shares trade on a forward PEG of 0.1.
ITV
ITV‘s share price has slipped 9% over the last month. As the Iran war escalates, the threat of weaker advertising revenues for commercial broadcasters is growing.
Yet I think the Love Island maker is worth a close look from dip buyers. Its forward price-to-earnings (P/E) ratio has dropped to 9.8 times.
In my view, the long-term outlook here is pretty exciting. Viewership of the firm’s ITVX platform continues to boom — in fact, it’s the UK’s fastest-growing streaming service. What’s more, I’m expecting profits to soar at the ITV Studios production division, as demand for content heats up among global platforms.
Lion Finance
Lion Finance shares have also dropped 9% over the past month. It’s a decline that leaves the stock looking attractively priced in terms of expected growth and dividends.
The Georgian bank’s forward P/E is 5.9 times, while the dividend yield is a FTSE 250-beating 3.7%.
Rising inflation could boost Lion Finance if it leads to margin-boosting interest rate hikes. The problem is, it could also lead to significant turbulence by capping economic growth, hitting financial services demand, and pushing up credit impairments.
Still, the longer-term picture for the bank remains robust given the underlying strength of Georgia’s economy. And at current prices I think it deserves serious consideration.
