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Forget Sirius Minerals! 2 FTSE 250 shares I’d buy instead

Sirius Minerals no longer appears to be a sensible investment as the share price continues to plummet. I believe this could be the beginning of the end, and I don’t think that it’s worth the risk. Last week, the share price plunged a shocking 60% after it failed to secure government backing for its North Yorkshire Moors mine.

With only six months to provide fresh funding before running out of money, the future looks extremely bleak for Sirius. Instead, I’d focus on other FTSE 250 risers that could provide investors with much more stable income.

Building a home

Redrow (LSE: RDW) is one of Britain’s largest housebuilders and right now it’s extremely cheap. Its price-to-earnings (P/E) ratio is currently under 7, while its dividend yield is over 5%. These numbers look attractive to me and already make me tempted to invest.

The cherry on top is that the share price has been steadily on the rise as well. Shares are up 18% just in the past month. This is a company that seems to be constantly improving. Furthermore, Redrow reports that revenue jumped 10% for the year ended 30 June.

It seems that Brexit isn’t damaging the stock, and the company’s steady track record eases further concerns. In fact, the company has even recently said that “demand for our homes is strong with reservations running ahead of last year.”

I believe that investors can be confident with this stock, as new-build sales are still through the roof, despite political and economic uncertainty. In my opinion, investors could be seriously missing a trick by overlooking Redrow. The low P/E, high dividend yield and strong performance make this a buy for me.

Continuous success

JD Sports (LSE: JD) has seen shares rise 15% already this month, and it has had a very successful first half of 2019. Despite a harsh climate for UK retail, JD has managed to continuously expand its physical presence. Physical retail represents 80% of its total sales.

JD appears to be focusing its efforts on expanding markets internationally. In the last six months alone, the company has added a total of 31 stores in Europe, Asia and the US. Total revenue is up 47% this year, thanks to the acquisition of Finish Line. The good news keeps coming as the company has also announced it is increasing dividend payouts by 3.7%. The yield may only be 0.25%, but this is a step in the right direction.

One thing to note is that JD stocks are on the expensive side, with a P/E ratio of 26. However, I believe the company is one to invest in, thanks to its huge potential for growth. Management has said that it aims to open many more international stores this year. Research house Global Data predicted that sportswear sales will rise 9% in 2019. All of this leads me to believe that JD has much more room for growth and is a worthy investment.

A Growth Gem

Research into unloved sectors can often unearth fantastic growth opportunities to help boost your wealth – and one of Fool UK’s contributors believes they’ve identified one such winner, which could be a bona-fide bargain at recent levels!

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fional owns shares of JD Sports Fashion. The Motley Fool UK has recommended Redrow. 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.