With a few days until the cutoff, I’m building a list of stocks to buy. I don’t have to actually purchase any shares to utilise what remains of my yearly allowance — just depositing my cash is enough to lock in that tax-free allowance. But I don’t see any reason to delay.

Why? Well recent stock market volatility means a lot of quality stocks are now trading at bargain-basement prices. They may fall in value again. Yet there’s also the chance that I’ll lose a top dip buying opportunity if I don’t jump in today.

Here are two cheap stocks I’m considering before that ISA deadline.

Forterra

Forterra (LSE:FORT) could face turbulence if the Middle East conflict rumbles on. A period of rising inflation and interest rates could have significant ramifications for its construction markets.

But at current prices of 157p, I think the brickmaker could be worth a nibble. This is because, at 0.4, its forward price-to-earnings-to-growth (PEG) ratio is well inside bargain territory of one and below.

Though there’s clear near-term risk, the outlook over a longer time horizon is a compelling one. In particular, the UK government’s plans to build 300,000 new homes a year this decade could supercharge Forterra’s profits. Following recent expansion, it has the scale to fully maximise this opportunity too (its Desford site is the largest brick factory in Europe with annual capacity of 180m clay blocks).

Forterra’s chunky 4.2% dividend yield offers an added sweetener for value investors.

Softcat

Softcat (LSE:SCT) shares have outperformed the broader stock market in recent weeks. This may come as a surprise, given the potential inpact the Middle East war could have on inflation and growth, and by extension cyclical sectors like technology.

So why has Softcat’s share price picked up steam? One reason seems to be that investors are confident the firm can successfully navigate the worst of any downturn. Despite tougher-than-usual conditions, the business lifted profit forecasts for this financial year after reporting a 33% rise in gross invoiced income. This bodes well looking ahead.

The company’s broad IT expertise is still delivering robust sales and earnings growth. But there’s another reason why the FTSE 250 share continues to rise.

Despite its recent uptick, previous price weakness means Softcat’s shares remain eye-poppingly cheap. At £12.15, the forward price-to-earnings (P/E) ratio of 16.7 times is well below the long-term average of 27-28. Could this continue to attract interest from value investors? I think so.

Full disclosure: I already hold this tech in my portfolio. However, its incredible cheapness means I’m considering increasing my own stake before the ISA deadline.

The post Looking for last minute ISA buys? Here are 2 on my radar appeared first on The Motley Fool UK.

Over 12 months, Softcat’s share price is down 24%. But I remain optimistic it will be a brilliant buy over the long term. In fact, I’m hoping the recovery could have started — it’s up 8% today (18 March) after releasing excellent half-year numbers.

Is it time for value investors to look closely at the stock?

Forecasts lifted

Softcat offers a wide range of solutions to businesses including cybersecurity, networking, cloud computing and AI. This way, it can provide integrated end-to-end IT services, which makes it a one-stop-shop that strengthens customer relationships.

On Wednesday it illustrated the strength of this model even during tougher market downturns. How? It lifted its full-year profit forecasts after announcing an “exceptional first half performance.”

Gross invoiced income leapt 33% during the six months to January, coming in at £2bn. Underlying operating profit grew 27% as a result to £93.8m. Both came in ahead of estimates.

Softcat said the result reflected “strong, broad-based performance and the contribution from larger solutions projects,” combined with “a pull forward of some customer orders due to memory shortages.”

As a consequence, the firm now expects “high single-digit growth in underlying operating profit” for the full year. It had previously tipped growth of low single-digits.

AI boost

What’s especially interesting is that Softcat seems to be effectively harnessing the AI boom rather than suffering from it. CEO Graham Charlton commented today that AI actually “opens up significant business model transformation opportunities.”

He added that “these trends play directly to our strengths, with AI increasing customer demand across storage and compute, through the network and onto devices, as well as creating the need for greater security and governance.”

The tech specialist‘s acquisition of Oakland last April has significantly boosted its expertise and opportunities in this area. With its exceptional cash generation, Softcat has the chance to boost its position here with further acquisitions and investment in staff (headcount jumped 10.5% in the first half).

Are Softcat shares worth a look?

Even after today’s recovery, Softcat’s share price still offers excellent value. Its price-to-earnings (P/E) ratio sits at 16.6, well below the 10-year average of 27–28.

The share still faces danger given the uncertain economic outlook and signs of rising inflation. It’s also important to remember we’re at the early stages of AI. Who will be the beneficiaries and who will be victims of this new frontier still remains largely unknown.

But Softcat’s strong start and strength elsewhere suggests it’s still a top stock to consider. And especially at today’s knock-down price.

The post Down 23%, consider this FTSE 250 share that’s boosted profit forecasts! appeared first on The Motley Fool UK.

After this drop, I think there could be an investment opportunity to consider here. Because right now, this stock appears to offer the winning combination of growth, dividends, and value.

AI demand is fueling growth

Softcat – which helps organisations with IT – posted its results for the six-month period ended 31 January 2026 this morning (18 March) and they were strong.

For the period, gross profit (its primary measure of income) was up 22.6% year on year to £269.9m. Meanwhile, underlying basic earnings per share was up 25.8% to 36.1p.

Driving this growth was high demand for AI infrastructure from customers. “AI is reshaping customer priorities at pace, and organisations of all sizes are now prioritising the building of the data, infrastructure and security foundations needed to deploy it effectively and at scale,” wrote CEO Graham Charlton in the results.

In terms of guidance, this was better than expected. Looking ahead, the company now expects high single-digit growth in underlying operating profit in FY2026, up from low single-digit growth previously.

It’s worth noting that the company said we’re still only in the early stages of the AI adoption cycle. It believes AI could create significant long-term opportunities for the group.

Rising dividends

On the back of this strong H1 performance, Softcat raised its half-year dividend by 11.2% to 9.9p per share. For the full year, analysts expect a total payout of about 50p per share.

Now, this dividend forecast could turn out to be too high. However, if the company was to declare that level of dividend income, investors would be looking at a yield of about 4% at today’s share price.

Value on offer

Zooming in on the valuation, it looks very reasonable to me after the recent share price dip. Currently, analysts are expecting earnings per share of approximately 71p for the financial year ending 31 July and 78p for the following financial year.

That puts the forward-looking price-to-earnings (P/E) ratio at around 17, falling to 16 using next year’s earnings forecast. These aren’t high multiples considering the growth being generated.

Attractive risk/reward proposition

As for risks, there are a few to be aware of. One is that growth here can be a little bit lumpy.

Recent performance, for example, has been boosted by larger projects and the pull forward of memory orders (there are shortages in the memory market right now). Looking ahead, growth may not be as strong.

Another issue is that despite recent international expansion, the company is still very UK-focused. This means it’s vulnerable to an economic slowdown in this country (which is a possibility).

Overall though, I like the risk/reward proposition at today’s share price. I believe Softcat shares are worth a look right now.

The post Softcat: a FTSE 250 tech stock offering growth, dividends and value appeared first on The Motley Fool UK.

With dividends included, investors in an index tracker fund on 1 January 2025 would have enjoyed a total return of 12.2%. With an average dividend yield of 3.2%, the FTSE 250 offered even better passive income potential than the FTSE 100, an incredible turn of events.

Impressive as that was, what really matters now to investors is what comes next. So the question is: can the index keep providing stunning shareholder profits?

Huge returns

Last year’s excellent total return comfortably exceeded the 8%-10% long-term range that stock markets typically deliver. If the FTSE 250 was able to repeat the trick over 25 years, someone investing £500 a month in an index tracker would eventually have £973,409 to show for it, give or take a few pence.

But be warned: last year’s returns were well above what investors have typically seen. Over a 10-year horizon, the index has delivered a far lower 5.5% annual return.

That’s less than half what the FTSE 250 achieved last year. If things revert to normal, a £500 investment here over 25 years would instead deliver a much lower £321,019. That’s not bad. But it’s unlikely to make most share investors feel ‘wealthy’.

A better strategy?

Past performance isn’t always a reliable guarantee of future returns, however. It’s possible 2025 represented a turning point as global investors piled into value shares. Yet despite last year’s gains, FTSE 250 shares still look dirt cheap to me, especially compared with US tech stocks. This could encourage further buying.

It could also move higher as the Bank of England cuts interest rates, giving the British economy a welcome boost. A large proportion of index companies’ earnings still come from these shores (roughly 50%).

But rather than buying an index tracker, I think a better wealth-building strategy could be to buy individual stocks. Softcat (LSE:SCT) is one such stock to consider that I think could be a far more lucrative option than a FTSE 250 tracker.

A FTSE 250 winner

I’ve actually put my money where my mouth is and bought Softcat shares for my own portfolio. Over the past decade, it’s provided an average annual return of 16.8%.

Okay, its share price has disappointed more recently as broader worries over the tech sector have grown. At £14.05, it’s dropped 8.2% in value over the last year. Problems like weak sales could emerge if British businesses keep the taps turned down on IT spending. Almost all revenues are generated from the UK.

But the long-term outlook here is rock solid, in my view. Companies need to digitalise to remain competitive, playing into Softcat’s hands. With expertise across IT segments including digital infrastructure, cybersecurity, networking and data storage, it has a wide range of growth possibilities over the next decade.

Today Softcat shares trade on a forward price-to-earnings (P/E) ratio of 19.5 times. That’s below the 10-year average of around 26 times, and could support a share price rebound sooner rather than later.

The post Will buying FTSE 250 stocks in 2026 make you richer? appeared first on The Motley Fool UK.

Some of these drops can be understood, but plenty of UK shares have also fallen beyond what is warranted. I’ve sought to find some of these cheap stocks and explain why now could be a great time to invest.

In some cases, I didn’t have to look very far. Here are three FTSE 250 shares I own that look dirt cheap right now.

Softcat

Tough market conditions have seen Softcat (LSE:SCT) shares dropped sharply since last summer. As a consequence, its forward price-to-earnings (P/E) ratio has tumbled to 19.6 times.

That might not look low on paper. But compared to the European IT sector’s average of 34 to 35, it suggests a possible bargain to be had.

Things are more difficult than usual as companies pause tech spending. However, Softcat continues to deliver impressive growth — profits rose by double-digits for the twentieth straight year in the 12 months to June. The firm’s expertise across multiple fast-growing tech trends suggests to me it should continue outperforming. It’s why I opened a position in the company this month.

City analysts largely think this reflects an attractive buying opportunity. Of the 13 who rate the stock, nine give it a Strong Buy. Three consider it a Hold. One has slapped a Strong Sell on Softcat.

Ibstock

Ibstock (LSE:IBST) is the UK’s largest brick manufacturer by volume. And it’s fallen sharply as hopes over a sustained improvement in housebuilding have dwindled.

But has the market overreacted? I think so. Key housing data has picked up since the start of 2026, and with interest rates falling the market could accelerate. Looking beyond this year, the brickmaker should benefit as planning red tape is slashed to boost build rates.

Brokers aren’t exactly bowled over by Ibstock’s investing case today. Four of the 10 who rate the company consider it a Buy. The remainder think it’s a Hold.

However, at current prices it’s worth serious attention, in my view. The FTSE 250 firm’s P/E-to-growth (PEG) ratio is 0.5. Any reading below one suggests a share trading below value.

Spire Healthcare

Spire Healthcare (LSE:SPI) is one of the largest private hospital groups in the UK. Its shares slumped in December as it warned of lower NHS-related work due to government budget restrictions.

Yet it’s started to rebound in 2026, and I’m confident it will recover even if a touted takeover fails to materialise. Demand from self-pay patients is still rising strongly, and should carry on as long NHS waiting lists endure, pulling profits (and Spire’s share price) higher.

Analysts are unanimous in their positive view of the company today. Six currently have ratings on the business. Five consider it a Strong Buy, with the other slapping a standard Buy on the healthcare giant.

For 2026, Spire trades on a PEG ratio of 0.4.

Final word

I’m not saying investors won’t be able to pick these UK stocks up more cheaply in the future. However, each offers brilliant value for money at current prices as I’ve shown. And so they demand serious consideration from savvy investors.

The post A once-in-a-decade chance to buy these 3 UK stocks on the cheap? appeared first on The Motley Fool UK.

But ‘catching a falling knife’ can be risky, and an exciting dip-buying opportunity can turn into a nightmare. With this FTSE 250 stock facing cost and competition challenges, have I set myself up for a fall?

Double-digit growth

First of all, let’s consider why Softcat’s share price has plummeted since the summer. It’s certainly not because trading’s fallen off a cliff. The tech specialist — which has delivered double-digit annual profit growth for 20 years — has continued to pump out forecast-beating numbers.

Gross profit rose 18.3% in the 12 months to July, driven by a 26.8% improvement in gross invoiced income. It followed October’s blowout statement a month later by reporting further double-digit profit growth for the Q1 of this year.

What could go wrong?

Things haven’t been perfect for the FTSE 250 firm though. Costs have risen rapidly (up 19% in the last financial year), and tough market conditions today are slowing bottom-line growth. Looking ahead, competition’s rising that could hamper future contract wins.

Yet Softcat, in my view, has what it takes to overcome these problem and grow profits, as its impressive earnings record shows. Its expertise spans cloud computing, cybersecurity, infrastructure and AI, giving it multiple ways to capture the ongoing digital revolution.

It has a strong balance sheet too to help it capitalise on this opportunity. It put this to good use by acquiring AI specialist Oakland in April, and further M&As are a possibility.

28% price rise?

Of the 12 analysts with ratings on Softcat shares, eight have slapped a Buy or Outperform rating on the company. Two consider it a Hold, and the same number a Sell.

Encouragingly, the average 12-month price target among this group is £18.27 too, representing a 28% increase from today’s levels.

I’m not the only one who’s seen a possible bargain here. Softcat’s chief financial officer Katy Mecklenburgh has also been snapping up shares, purchasing almost £300,000 worth of stock on 8 December. That’s quite the vote of confidence in Softcat’s future prospects. And she bought shares at £14.60 and £14.57 too, higher than the £14.12 I just bought in at.

Bottom line

While Softcat faces challenges, I believe the company’s share price correction since July more than reflects this. My view is that its reduced valuation reflects its lower growth prospects for the near term, and represented an attractive entry point for me to open a position. Its forward P/E ratio’s now at multi-year lows.

Only time will tell if I’ve made a mistake. But for investors seeking potential recovery shares in 2026, I think this growth stock’s worth serious consideration.

The post Down 20%, I’ve just bought this battered growth stock! Have I messed up? appeared first on The Motley Fool UK.

I see a growth stock basically as a firm with strong potential for above-average revenue and earnings expansion.

I already hold several examples, but I was curious to see ChatGPT’s picks.

So, what did it say?

A curveball opener

Its top pick was FTSE 100 miner Fresnillo (LSE: FRES) — a curveball for me. While it mines for several metals, its focus is on silver and gold. I have always regarded both as speculative plays, too close to gambling for my taste.

To be fair, ChatGPT did point out the high risk that comes from precious metals price volatility. But its view leaned on big price gains over the past year, while I am more concerned with future earnings growth.

According to my analysis, Fresnillo’s earnings are forecast to grow 34.7% a year to end-2027. Overall, then, a good earnings growth prospect, but a very risky one in my opinion.

Defence giant next up

ChatGPT’s second pick looked a better all-around choice to me — FTSE 100 defence giant Babcock International Group (LSE: BAB).

The artificial intelligence platform provided some solid – if basic – analysis of key drivers for the business. It said: “Growth is backed by rising defence and engineering demand.”

It also implied an undervaluation to its peers: “Babcock offers a compelling yet still relatively under-the-radar opportunity versus big blue-chips.”

My discounted cash flow valuation for the firm shows it is 17% undervalued. But this margin could vanish in any high market volatility.

ChatGPT also failed to mention any risk in the stock. I think a key one is a fault in any of its key systems, which could dent its earnings growth.

Analysts forecast its earnings growth to be 6.6% a year to end-2027. And this would not make it a legitimate growth stock to me.

IT powerhouse

ChatGPT’s final choice was FTSE 250 IT reseller and IT infrastructure solutions provider Softcat (LSE: SCT).

It cited the firm’s position in the high-growth IT services, cloud, and cybersecurity sector as a key growth driver.

But that was it, aside from saying that as a mid-cap, Softcat is more volatile than large-cap names. This observation is sort of true, but not necessarily – it depends on individual company fundamentals.

A more specific risk for the firm, I think, is the high degree of competition in its sector, which could squeeze earnings.

Talking of which – and ChatGPT did not, again – Softcat’s earnings are forecast to rise by 8.9% a year to end-2027. Like Babcock’s, this is not sufficiently high for me to consider it a major growth stock opportunity.

My take on the picks

Broadly, none of the stocks chosen were outright bad, although one (Fresnillo) was questionable in my view.

More specifically, ChatGPT seemed much more focused on past price gains than on what might power future ones. This should also have included earnings growth forecasts and valuations based on discounted cash flow that factor these in.

I also thought its risk assessment of each was not specific enough.

So, I will stick with my own methodology to pick growth stocks. And I have some excellent candidates in view now.

The post I asked ChatGPT for the 3 best FTSE growth stocks, and here’s what it said… appeared first on The Motley Fool UK.

Could the company be running out of steam though? Strong defence markets and resilience in the global airline industry bode well looking ahead. But I feel these supportive factors may be more than baked into the firm’s valuation, which in turn could limit further price rises.

The average 12-month price target for Rolls-Royce shares is £11.98, up 15% from today’s levels. Given the FTSE stock’s forward price-to-earnings (P/E) ratio of 37 times, I’m not surprised that price action is expected to be more subdued.

I’m looking for more attractively priced growth shares that could outperform Rolls in the near term and beyond. What has my research thrown up?

Softcat

Softcat (LSE:SCT) provides a range of information technology services including cybersecurity, networking, and cloud computing. Its shares have dropped 7.6% over the last 12 months as market confidence has weakened.

City brokers are expecting the FTSE 250 firm to rebound sharply over the next year, however. Their average share price target is £18.10, up 29% from current levels.

I’m not surprised by their bullish opinion. There are risks here, like fears of an AI bubble that could pull all tech shares sharply lower. Softcat also has to beat off significant competition across its service lines.

But I’m confident it can remain an impressive profits grower. Its broad expertise means it continues to defy weak conditions in the tech market — gross invoiced income rose roughly 27% in the 12 months to July. Furthermore, it has a cash-rich balance sheet it can use to capitalise on fast-growing sectors like AI and cloud computing.

City analysts expect Softcat’s long record of earnings growth to continue with a 3% rise this financial year (to July 2026). This leaves it trading on a reasonable P/E ratio of 19.6 times.

Greggs

Greggs (LSE:GRG) has seen its reputation as a top growth stock shredded over the past year. Demand for its desserts, pastries, and drinks has been walloped as consumers have tightened their purse strings.

Ongoing pressures mean the baker’s earnings are tipped for a rare 17% fall in 2025. Trading may remain weaker than usual, too, if the UK economy continues to splutter.

Yet City analysts are confident the bottom-line will rebound from next year. I’m not surprised — new store openings in lucrative destinations like train stations should help turn things around. I’m also hopeful sales will pick up as the minimum wage is hiked for millions of Britons, lifting their disposable income levels.

Forecasts point to a 4% earnings recovery in 2026, and an extra 5% rise the following year. As for Greggs’ share price, the average 12-month price target is £19.31, up 31% from current levels.

I feel Greggs’ undemanding valuation provides scope for its shares to surge again. Its forward P/E ratio is just 12.5 times.

The post Meet the growth stocks tipped to outshine Rolls-Royce’s share price! appeared first on The Motley Fool UK.

Take the following FTSE 250 shares: QinetiQ (LSE:QQ.), Softcat (LSE:SCT), and TBC Bank (LSE:TBCG). Each now trades on a rock-bottom earnings multiple following heavy price falls.

Could they rebound in December?

Defence bargain

UK defence shares like QinetiQ have fallen sharply in recent days. The prospect of peace in Ukraine would be welcome after years of bloodshed. But it could have significant impact on defense sector profits if sales slump afterwards.

News of a ceasefire could cause defence contractors to fall further. However, the chances of a peace deal being struck — or holding out after any ceasefire — remain uncertain. The failure of a US-brokered deal could have the opposite effect and prompt shares to rally.

The low valuation on QinetQ shares in particular may help it to rebound in this event. A 16% share price drop over the last month leaves it on a forward price-to-earnings (P/E) ratio of just 13.7 times. This is one of the lowest multiples across the European defence sector.

QinetiQ’s share price also commands a P/E-to-growth (PEG) ratio of 0.8. A reading below 1 implies a share is going mega cheap.

Tech star

Fears of an AI bubble have spread across the broader tech sector in recent weeks. Information technology provider Softcat has sunk 13% as investors have reduced or closed out positions.

It’s a decline I think merits serious attention from bargain hunters. The business trades on a forward P/E ratio of 19.7 times.

As the chart shows, this is historically a rock-bottom rating for Softcat shares.

My view is that worries over the AI sector have been overblown, as Nvidia‘s blowout results last week showed. I’m backing Softcat to rebound when market sentiment stabilises.

Over the long-term, I’m confident the company could surge in value as increasing digitalisation drives sales. That’s despite the threat of rising costs and competition from US tech shares. Softcat’s share price has rocketed 410% since November 2020.

Bargain bank

TBC Bank has long been one of the most eye-catching FTSE 250 value shares. Having declined 10% over the last month, it’s now a bargain I think merits serious attention from investors.

Its forward P/E ratio is 5.4 times. That makes it the cheapest UK-listed bank share, well behind the likes of Lloyds (11.9 times) and HSBC (9.8 times), for instance.

Furthermore, a 6.6% dividend yield for this year is one of the sector’s highest.

The bank’s shares have dropped after it said full-year profits will undershoot prior forecasts. Current problems include regulatory changes that have introduced a cap on microloans, a key market for the company.

Yet I think the market has overreacted to the news. Trading remains strong, as Georgia’s booming economy drives financial services demand. And the business is accelerating its shift from microloans to areas like SME lending to overcome its recent travails.

I think TBC could spring back as investors wake up to its exceptional all-round value

The post Could these dirt-cheap FTSE 250 shares enjoy a December rebound? appeared first on The Motley Fool UK.

A FTSE 250 tracker fund maybe worth a close look in this climate. However, investors could potentially achieve better returns by purchasing individual shares instead.

With this in mind, here are two top growth shares that are tipped to soar in value.

QinetiQ

Defence shares like QinetiQ (LSE:QQ.) have surged since Russia invaded Ukraine in early 2022. As the world rapidly rearms following the conflict, analysts expect this particular contractor to rise another 27% in value during the next year.

City analysts expect QinetiQ’s earnings to rise 17% this financial year (to March 2026). Further double-digit rises are expected through to financial 2028 as well.

I’m not surprised given the market outlook. In the UK — from which the FTSE 250 company sources two-thirds of sales — defence spending is tipped to rise to £73.5bn by 2027/2028. That’s up from £62.2bn in the current year. Similar upswings are planned across QinetiQ’s other NATO (and NATO-partnered) customers.

The defence sector is famously competitive, meaning contract wins are never guaranteed. Other threats to profits include supply chain disruptions and surging costs.

But the Hampshire company looks well placed to navigate these challenges. It ended the June quarter with a record order book of £5.3bn, and tipped organic sales growth of 3% for the current financial year.

Despite strong share price gains, QinetiQ still look very cheap, with a price-to-earnings growth (PEG) ratio of 0.8. This makes it a great value growth share to consider.

Softcat

IT services provider Softcat‘s (LSE:SCT) had a bumpier ride in recent years but is still worth further research.

Given its more cyclical operations, this is perhaps not a surprise: growth shares with high multiples can struggle during uncertain economic periods. Today, Softcat shares trade on a price-to-earnings (P/E) ratio of 21.8 times.

But City analysts are expecting its share price to jump 24% over the next 12 months.

Forecasters are confident market conditions will improve as interest rates fall, giving Softcat’s profits a steady boost. Earnings are expected to rise 2% in the 12 months to July 2026, before accelerating to 9% in fiscal 2027.

The Buckinghamshire business is a real growth hero, delivering 20 straight years of double-digit gross profit growth. Its wide expertise — which includes cybersecurity, networking and cloud computing — has helped it effectively seize on the 21st century’s digital revolution.

Right now, it’s working to boost its AI capabilities for future growth, and this year purchased data and AI consultancy Oakland. This marked the company’s first ever acquisition.

Softcat’s gross profit rose 18% last financial year, though a 19% rise in underlying costs took the shine off somewhat. Cost pressures remain a notable threat going forwards, while competition from US peers is another possible roadbump.

But on balance, I’m optimistic Softcat’s shares can rise sharply as analysts predict.

The post Prediction: these FTSE 250 growth stocks are set to explode appeared first on The Motley Fool UK.