The Motley Fool

2 fast rising FTSE 250 growth stocks I’d buy today

Often, investors are less inclined to buy shares that have generated high returns in recent months. After all, their valuations will inevitably be higher than they were, and this can mean less upside potential for new investors.

However, just because a company is popular among investors doesn’t necessarily mean it’s worth avoiding. It may have improving forecasts, or still offer a wide margin of safety. With that in mind, here are two FTSE 250 shares which have risen sharply in recent months and could continue to do so in the long run.

5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!

According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…

And if you click here we’ll show you something that could be key to unlocking 5G’s full potential...

Improving performance

Releasing a production report for the first half of the year on Wednesday was gold and silver miner Hochschild (LSE: HOC). The company’s share price gained 4.5% on the day, taking its rise since the start of the year to 27%.

Production in the first half has been in line with expectations. The company has produced 8.9m ounces of silver and 121,430 ounces of gold. It’s on target to deliver its overall 2017 production target of 37m silver equivalent ounces. This is due to be done at an all-in sustaining cost per silver equivalent ounce of between $12.20 and $12.70. This is in line with guidance and shows that the company continues to keep costs low in a competitive environment.

Looking ahead, Hochschild is forecast to report a rise in its bottom line of 89% for the next financial year. This puts its shares on a price-to-earnings growth (PEG) ratio of just 0.2, which suggests they are grossly undervalued even after their gain since the start of the year. As such, now could be the perfect time to buy the company for the long term.

Continued turnaround

Also offering capital growth potential is fellow mining company KAZ Minerals (LSE: KAZ). It experienced a difficult period in and around 2014, with the company reporting a red bottom line in that year. Since then, it has embarked on a major turnaround which has coincided with improving production. The company is now profitable and is expected to record a rise in its bottom line of 81% in the current year, followed by further growth of 35% next year.

This high rate of growth puts the company on a PEG ratio of just 0.2. Given its potential to deliver even higher levels of profit, this seems to be difficult to justify. As such, and despite a share price rise of 63% since the start of the year, more capital growth could be ahead.

In terms of its sustainability, KAZ Minerals appears to have confidence in its future. It’s forecast to recommence dividends next year after a five-year hiatus. This could suggest to investors that the company has a sound financial position and is confident regarding future profitability. This may boost investor sentiment and push the company’s shares to higher highs. Therefore, there may still be a buying opportunity at present.

5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!

According to one leading industry firm, the 5G boom could create a global industry worth US $12.3 TRILLION out of thin air…

And if you click here, we’ll show you something that could be key to unlocking 5G’s full potential...

It’s just ONE innovation from a little-known US company that has quietly spent years preparing for this exact moment…

But you need to get in before the crowd catches onto this ‘sleeping giant’.

Click here to learn more.

Peter Stephens owns shares of KAZ Minerals. The Motley Fool UK has no position in any of the shares mentioned. 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.

Our 6 'Best Buys Now' Shares

The renowned analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.

So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee.

Simply enter your email address below to discover how you can take advantage of this.

I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement.