The Motley Fool

5 FTSE 250 shares to buy today

Image source: Getty Images

As the UK economy rebuilds after the coronavirus crisis, I’ve been looking for FTSE 250 stocks to add to my portfolio. Here are five companies I’d buy right now. 

FTSE 250 shares to buy

The first stock on my list is drinks business Britvic. This company owns some of the most recognisable drinks brands in the UK. Therefore, I think its profits should return to growth as the UK economy reopens and consumer confidence improves.

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...

The one major challenge the group could face as we advance is higher costs. These may hurt its growth in the next few months, and possibly years. However, it should be able to raise prices to offset higher costs.

As such, I would buy the company for my portfolio of FTSE 250 stocks.

Another recovery play I would buy in the FTSE 250 is Cineworld. When cinemas are eventually allowed to reopen at full capacity, this company should experience a recovery in profits and sales.

That said, this stock might not be suitable for all investors. The company has built up a tremendous amount of debt throughout the crisis, and it could be some time before profits return to 2019 levels. Nonetheless, I’d buy the stock for its recovery potential.

I’d also buy shares in FTSE 250 airline easyJet for the same reason. The company is a high-risk, high-reward investment. It could be years before the airline returns to 2019 levels of profitability. During that time, there’s no telling what could happen to the business.

Still, as a recovery play, I think easyJet’s well-known brand and reputation for low-cost, no-frills air travel will work in its favour. These are the primary reasons why I’d buy the stock for my portfolio today. 

Growth investments 

Domino’s Pizza is one company that seems to have prospered in the pandemic. Despite the economic lockdowns, the group’s underlying profit before tax rose to £101m last year, up from £99m in 2019.

I’ve always been impressed by its business model, which has helped the firm expand revenues by 40% in the past five years.

Past performance should never be used as a guide to future potential, but I think the group can maintain its growth trajectory. That’s why I’d buy the company for my portfolio of FTSE 250 stocks.

However, Domino’s is facing more and more competition, making it harder for the business to grow. I think that’s the main challenge facing the company today. 

The final company I’d buy is Morgan Sindall. I think this construction business should benefit from increased economic activity in the UK, as well as the government’s massive infrastructure spending plans.

The main challenge it faces is the potential for higher costs, which could hit profit margins.

Construction is also a low-margin business, so any slowdown in sales could have a big effect on the group’s bottom line. However, despite these risks, I think the company is one of the best FTSE 250 stocks to play the UK economic recovery.

FREE REPORT: Why this £5 stock could be set to surge

Are you on the lookout for UK growth stocks?

If so, get this FREE no-strings report now.

While it’s available: you'll discover what we think is a top growth stock for the decade ahead.

And the performance of this company really is stunning.

In 2019, it returned £150million to shareholders through buybacks and dividends.

We believe its financial position is about as solid as anything we’ve seen.

  • Since 2016, annual revenues increased 31%
  • In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259
  • Operating cash flow is up 47%. (Even its operating margins are rising every year!)

Quite simply, we believe it’s a fantastic Foolish growth pick.

What’s more, it deserves your attention today.

So please don’t wait another moment.

Get the full details on this £5 stock now – while your report is free.

Rupert Hargreaves owns no share mentioned. The Motley Fool UK has recommended Britvic and Dominos Pizza. 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

Renowned stock-picker Mark Rogers and his 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 click below to discover how you can take advantage of this.