The FTSE 250 has tanked recently as a result of coronavirus uncertainty. Back in February, the index was up near the 22,000 points mark. Today, however, it’s under 16,000 points – nearly 30% lower.
In the near term, stock market volatility is likely to remain high. We don’t know what’s going to happen tomorrow, or next week. However, in the long run, the FTSE 250 should recover. With that in mind, here’s a look at three FTSE 250 stocks I believe are worth buying today.
FTSE 250 online shopping play
One of those I think looks attractive right now is Tritax Big Box REIT (LSE: BBOX). It’s a real estate company that owns a large portfolio of modern, sophisticated logistics warehouses. Its share price has fallen about 21% this year.
I believe BBOX is well positioned to navigate the near-term uncertainty associated with the coronavirus. For a start, the group’s main tenants are major corporations, such as Amazon (13% of rent). Secondly, around 50% of its rent is generated from defensive sectors, such as food retail.
In the long run, the growth potential here is significant. With online sales in the UK growing every year, demand for logistics space is increasing. And, as the group recently pointed out, this crisis is demonstrating the need for retailers to operate in prime, well-located buildings.
Overall, there’s a lot I like about BBOX. I’d buy the shares now and hold for the long term.
Another FTSE 250 stock I like the look of right now is Avast (LSE: AVST). It’s a technology company that specialises in cybersecurity solutions. Worldwide, it has over 400m users. Year-to-date, its share price is down about 14%.
My view is the coronavirus pandemic could potentially boost demand for Avast’s cybersecurity solutions. With employees across the world working remotely, cyberattack numbers are likely to rise. Indeed, according to Dave Waterson, CEO at security protection software company SentryBay, we’re likely to see a 30%-40% increase in cyberattacks during the coronavirus pandemic.
The long-term story looks attractive too. The cybersecurity market is predicted to grow at over 10% annually and worth around $250bn by 2025. This means there’s significant long-term growth potential.
All things considered, I’m bullish on Avast.
Finally, I also like FTSE 250 firm Computercenter (LSE: CCC). It’s a leading provider of technology solutions to businesses. Its share price has fallen about 13% this year.
I last covered CCC on 23 March when stock markets were in meltdown. At the time, the stock was trading for about 1,060p. I said the risk/reward proposition was “attractive.” Fast forward to today, and CCC’s share price is 1,540p. That means the stock is up over 40% in just a few weeks.
I still see value here. I say this because, while digital transformation has been on the agenda for many companies for years now, the Covid-19 pandemic is pushing firms to embrace it wholeheartedly. Now, more than ever, a digital business is an absolute necessity.
Technology has been one of the best performing sectors globally over the last decade. I expect it to continue outperforming in the years ahead. I see this FTSE 250 company as a good way to capitalise on the growth story.
Edward Sheldon owns shares in Tritax Big Box REIT. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK owns shares of and has recommended Amazon. The Motley Fool UK has recommended Tritax Big Box REIT and recommends the following options: short January 2022 $1940 calls on Amazon and long January 2022 $1920 calls on Amazon. 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.