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These 3 FTSE 250 stars are too cheap to miss!

A bona-fide bargain

Whilst still dealing at a considerable discount to their pre-referendum price, shares in Bellway (LSE: BWAY) have bounced higher in recent sessions as concerns over the strength of the housing market have eased somewhat.

Having said that, I believe the company is still a bona-fide bargain at current prices. Indeed, Bellway certainly remains bullish over its earnings prospects despite the uncertainty created by the Brexit vote.

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The firm noted last month that “[our] long term outlook continues to be positive, supported by strong customer demand, a substantial forward order book and favourable trading conditions across all areas of the country where Bellway operates.” And it noted that trading has “remained resilient” following June’s referendum.

The City certainly expects the bottom line to keep swelling at the Newcastle-based builder, and it has pencilled in a 4% earnings rise for the period to July 2017. This results in a P/E ratio of just 7.4 times.

And to add to Bellway’s allure, the firm also sports a market-topping forward dividend yield of 4.3%. I believe the company is far too good to overlook at current prices.

Budget beauty

Greetings card specialist Card Factory (LSE: CARD) has emerged as one of the FTSE 250’s biggest losers in 2016, the firm shedding more than a third of its value and striking two-year troughs just last week.

However, I am convinced that the market is missing a trick here. While the British high street is likely to come under attack from rising inflation next year, an environment of pressurised consumer spending power is likely to play into the hands of ‘budget’ retailers like Card Factory, forcing shoppers to switch down from the more expensive wares of Clinton Cards and WH Smith, for example.

A 2% earnings dip is predicted by the Square Mile for the year to January 2017, although I fully expect sales growth to pick up again further out and drive earnings higher. Card Factory already noted this month that trading has improved since the start of October. And the retailer’s store expansion scheme should help propel revenues higher, too — the firm is aiming to open 50 new outlets per year.

I reckon a P/E ratio of just 13 times, combined with a chunky 3.7% dividend yield, makes Card Factory a steal at the current time.

A pukka pubs play

Like Card Factory, pub operator Greene King (LSE: GNK) has also endured heavy bouts of selling pressure recently, the stock diving to its cheapest since April 2013 just today. But I reckon this represents a hot buying opportunity.

The City certainly sees no room for panic, and have pencilled in a 3% earnings rise for the period to April 2017 as the firm’s brand improvement measures keep driving the top line — like-for-like sales rose 1.7% during the 18 weeks to 4 September.

This results in a P/E ratio of just 9.9 times, representing brilliant value in my opinion. And the booze behemoth also carries a 4.8% dividend yield for the current period.

Be brave and keep buying

So Britain is about to tumble out of the EU. So what?!

With volatility comes opportunity!

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Royston Wild has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.