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.

In response to media speculation, the company told us it doesn’t think its market cap fully reflect its underlying value. The board confirmed it’s “commenced a process to hold discussions with a number of parties in relation to a range of potential options“.

Those options “may include … a potential sale of the company“. But the announcement stressed it’s all “highly preliminary and no decision has been made regarding whether any such option will be pursued at this stage“.

Time to buy?

What should potential investors do now? Some might buy in the hope the company is sold and they can bag a quick profit. In fact, the price rise suggests some already have. That’s always a gamble, and could well result in a loss should there be no sale. I’d never buy in the hope of a sale myself.

But if the company is considering so drastic an action because it thinks the stock is undervalued, I want to take a look. And my first step is to dig out the broker forecasts and check the valuation.

My first impression is… I like what I see from a long-term perspective. But I’m not sure I see a screaming undervaluation that would justify seeking a buyout.

We’re looking at a forecast price-to-earnings (P/E) multiple of 27 for the current year. Analysts expect earnings per share to then more than double between 2025 and 2027. And that could drop the 2027 P/E to around 12.5. Providing there’s further growth forecast by then, I could definitely see that being too cheap.

Recent profit

But we have to remember one key thing. Spire Healthcare was posting losses per share before 2022. And that year’s modest profit meant a P/E up at 109. In the next two years, earnings rises brought that multiple down to a trailing 36.5 by 2024.

To me, this seems like the expected transition between losses and profits. And it can take a few years for a consensus to build regarding the long-term value of a stock like this.

In the announcement, Spire pinned its undervaluation judgment partly on its “freehold property and a well invested asset base“. I see a forecast price-to-book ratio (PBR) of 1.3 times here. And while that’s modest, I don’t see an urgent need to unlock value on this basis.

This desire to release the stock’s valuation potential so speedily seems maybe a bit premature to me. And I expect a lot of shareholders would be happy to just hold while they see those healthy forecasts.

Bottom line

I like what I see in this company. And it really has me thinking about it. A shortfall in NHS services means more business is going Spire’s way. But there also has to be political risk with the government funding private healthcare.

I think investors should consider buying. And if I buy, it’ll be for the long term — and I’ll be hoping there’s no sale.

The post This FTSE 250 stock posted a big jump in September. Time to buy before it’s too late? appeared first on The Motley Fool UK.

My research has unearthed the following bargain-basement growth heroes:

As you can see, both of these FTSE 250 stocks are tipped to deliver double-digit earnings growth in the current financial year.

They also trade on a rock-bottom price-to-earnings growth (PEG) multiple below the value marker of one.

Here’s why I think they’re worth serious consideration from shrewd ISA investors.

Chemring

Chemring — which manufactures countermeasures and sensors for the defence industry — is thriving as arms spending accelerates in the West.

Its latest contract win last month was £26m, a multi-year agreement with “a major US prime contractor” to supply radar technology.

It follows news that revenues rose 8% in Chemring’s last financial year (to October 2024). Its order book also leapt to record highs of £1.04bn in the last fiscal period.

WIth geopolitical tensions rising and NATO budgets increasing, the FTSE 250 firm looks in good shape to win lots more business in the future. This should be supported by capacity increases for its countermeasures operations in the US and UK, and potential expansion in Norway (which it is currently exploring).

I’m also excited by Chemring’s improving presence in rapidly growing areas of artificial intelligence (AI), cyber warfare, and electronic security. These phenomena drove sales at its Roke unit 13% higher in financial 2024.

Supply chain issues in the defence industry remain a threat. And on the sales side, demand from the US could be adversely affected by spending reviews from Elon Musk’s Department of Government Efficiency (DOGE).

Yet on balance, I think Chemring’s a top stock for growth investors to consider. And particularly at today’s price.

Spire Healthcare

With its large footprint of 39 hospitals and 50 clinics (and other facilities), Spire is one of the UK’s largest private medical services providers. As a result, sales and profits are soaring as severe pressure on the National Health Service (NHS) drags on.

The reasons for this trading boom are twofold. NHS-related business is growing as the government pays private healthcare providers to clear patient backlogs. Revenues from this source rose 5.2% in the six months to June.

Trade is also booming as people sidestep long NHS waiting lists and fund their own treatments. Spire’s private revenues (through self-pay and private medical insurance) grew 5.1% between January and June 2024.

At the moment, there are 7.5m people waiting for NHS treatment. This will take a long time to clear, giving Spire excellent earnings visibility.

As Britain’s elderly population grows, healthcare businesses like this have significant profits potential over the longer term too. The Office for National Statistics believes one in four Brits will be aged 65 and older by 2050.

I think Spire’s a top stock to consider, even though medical staff shortages (and their impact on costs) remain a threat.

The post 2 cheap FTSE 250 growth shares for ISA investors to consider! appeared first on The Motley Fool UK.

However, I revisited the stock recently and noticed… the share price is still going sideways! Nonetheless, it does look like a more interesting prospect to consider today purely because of its incredible earnings forecast.

Big earnings potential

Spire Healthcare is currently trading at 34.3 times earnings for the last reported year, 2023. However, the company’s earnings for 2024 — to be released in March — are set to be around 50% higher than the previous year. This trend continues throughout the forecasting period through to 2026. As such, the company would now be trading at 23.3 times forward earnings, and then 15.6 times earnings for 2025 and 11.3 times projected earnings for 2026.

This will be driven, according to analysts, by surging revenues, which jump from £1.3bn in 2023 to £1.7bn in 2026. In the meantime, the business is expected to maintain control over costs and reduce debt. What’s more, the dividend yield is also expected to expand, reaching 2.25% by 2026, based on the current stock price. All of this is very encouraging.

Why is this happening?

Spire Healthcare is poised for strong performance due to several key factors. The company has seen significant growth in private revenue, driven by a surge in private medical insurance adoption among working-age individuals. This trend is particularly strong in corporate sectors, leading to increased outpatient activity and higher-margin inpatient treatments.

Additionally, Spire’s partnerships with the NHS have expanded, with rising revenue supported by higher commissioning volumes and patients choosing Spire facilities to reduce waiting times. Its NHS revenue increased 5.2% in H1 of 2024.

Operationally, it has implemented a £15m efficiency programme, focusing on digitalisation, automation, and process improvements. This initiative aims to boost hospital EBITDA margins beyond 21% by 2027. The company’s financial performance reflects these efforts, with adjusted EBITDA increasing by 10.8% in the first half of 2024, driven by improved hospital margins and optimised pricing strategies.

An opportunity worth considering

Of course, many UK investors will be put off by the current earnings multiple. After all, if Spire fails to deliver on its promised growth, the stock could fall. In fact, the March results really could be a make or break moment for the business. Expensive stocks that don’t meet earnings targets can slump.

Moreover, investors should weigh whether the business is becoming overly reliant on the NHS and consider whether labour shortages could negatively impact both the top and bottom line. It’s also worth noting that debt is relatively high compared to earnings, although the company is relatively asset rich.

However, the broader trends are very much in the company’s favour. The population is ageing, fewer of us trust the NHS and are taking private healthcare options, and Labour may be more inclined to invest in reducing NHS waiting lists. This is also reflected in the stock’s average price target of £3.07, which is 34% higher than the current price. All eight analysts covering the stock have a positive rating.

The post This boring FTSE 250 stock has an incredible earnings forecast! appeared first on The Motley Fool UK.

Aviva CEO Amanada Blanc said: “We’ve seen individuals looking at the NHS and saying: ‘I can afford to buy health cover, so I will do that.’ So we’ve definitely seen a take-up in individual policies. We’ve also seen small businesses take advantage of the opportunity to protect their employees.”

That’s a reference, of course, to the NHS’s massive backlog of cases. In June, the waiting list reached 7.62m, with the median waiting time for treatment at 14.3 weeks (almost double the pre-pandemic wait).

The new government has called the NHS a “broken” system (though not “beaten“) following years of underinvestment. Things aren’t expected to improve anytime soon, especially with budget pressures and a rapidly rising (and ageing) population.

So the steady growth of private healthcare, which is carrying out more outsourced work for the NHS, seems almost certain. Here’s one FTSE 250 stock that offers investors direct exposure to the trend.

Booming demand

Spire Healthcare Group‘s (LSE: SPI) the second-largest provider of private healthcare in the UK. It runs 38 hospitals and over 50 clinics, medical centres and consulting rooms.

The share price is up 84% in five years, giving the firm a £903m market-cap.

The company’s carrying out more work for the NHS and benefitting from both people and businesses paying to avoid long waiting lists. In 2023, revenue rose 13.4% to £1.35bn, while adjusted pre-tax profit rocketed 175% to £38.8m. Free cash flow increased 71.4% to £48m.

This strong performance continued into the first half of 2024. Spire’s revenue rose 12.7% to £762.5m, and adjusted pre-tax profit jumped 20.2% to £26.8m. Growth was boosted by the acquisition of Vita Health Group, a leading provider of mental and physical health services.

NHS revenue increased 5.2%, and the average revenue per case rose 4.7% to £3,495.

For the full year, revenue’s set to jump around 12.3% to £1.53bn. And the firm’s now fully staffed at almost all sites, which should help reduce the need for expensive agency staff. 

CEO Justin Ash said: “Spire stands ready to work with the new government to help address NHS waiting lists.”

Valuation

Looking further ahead, forecasts show steady if unspectacular growth through to 2026.

One risk here would be a government U-turn on using the private sector to bring down NHS waiting lists. This doesn’t look likely to me, but it can’t be ruled out.

Another issue is that the stock looks expensive, trading at 26 times trailing earnings. However, analysts see profits growing much faster than revenue, resulting in a cheap forward earnings multiple of 11 for 2026.

There’s also a dividend set to grow rapidly, though the yield‘s currently tiny at just under 1%.

Pure-play stock

According to Spire, more young people than ever are opting for private health insurance. This suggests going private could become the norm for a new generation, even after NHS waiting lists are reduced.

If I wanted pureplay exposure to this theme in my portfolio and had the cash, I’d consider buying shares of Spire Healthcare.

The post 1 FTSE 250 stock I’d consider buying for the boom in private healthcare! appeared first on The Motley Fool UK.

Airtel Africa

What it does: Airtel Africa operates mobile phone networks and a mobile money business across multiple markets in east and west Africa.

By Christopher Ruane. In March, shares in Airtel Africa (LSE: AAF) were selling for pennies. Within three months they had shot up in price over 33%. The long-term picture is solid too, with a five-year price gain of 69%.

I continue to see large potential here. The company has a well-established business and sizeable customer base in markets where I see ongoing growth opportunities thanks to demographic and economic changes. The mobile money offering could be set for particularly strong growth in my view.

But a key risk – currency devaluation in emerging markets – continues to dog the firm. Last year saw revenues in the reporting currency (US dollars) fall, while a $750m profit the prior year gave way to an $89m loss.

The company has done well battling a chaotic currency situation in Nigeria and I still believe in its long-term potential. But I decided to act on the price rise and take some risk out of my portfolio.

Christopher Ruane does not own shares in Airtel Africa.

dotDigital 

What it does: dotDigital is a technology company that offers digital marketing software. 

By Edward Sheldon, CFA. Recently, I had a bit of a portfolio cleanout and dotDigital (LSE: DOTD) was one stock I offloaded. 

Why did I choose to sell this particular stock? Well, there were a few reasons. 

The main reason was simply that it had become a really small position (less than 1%) in my portfolio. So, it wasn’t likely to have much of an impact on my overall returns going forward. 

Of course, I could have added to my position. But I decided that it was no longer one of my best ideas, so my view was that I was better off selling it and freeing up some cash for other investment opportunities. 

As for why it’s no longer one of my best ideas, I’m a little concerned that generative artificial intelligence (AI) could disrupt the company’s business model. This wasn’t a major risk when I first bought the stock around a decade ago. 

Now, knowing my luck, the shares will soar from here. I still think they have plenty of potential. The company could even be a takeover target. 

I’m seeing a lot of other exciting opportunities in the market, however. So, the cash from this sale is likely to come in handy in the months ahead. 

Edward Sheldon has no position in any shares mentioned.

Nike

What it does: Nike is the world’s largest sportswear brand.   

By Ben McPoland. I sold my shares in Nike (NYSE: NKE) earlier this summer. Thankfully it was before the firm’s fiscal fourth-quarter results, which sent the stock down 20% – its biggest ever one-day drop.

The company is suffering from slowing sales due to weak consumer demand. For FY25 (which has just started), it’s forecasting a mid-single-digit decline in revenue. Its China business remains tepid while sales of its Converse brand slumped 18% during the quarter.

My fear here is that Nike’s best days may be in the rear-view mirror. A lack of product innovation suggests it’s not the same beast that saw off the challenges of Under Armour and others in years gone by. A whole raft of competitors, from Lululemon to Hoka and New Balance, are appealing to consumers and stealing market share.

Nike is rolling out new $100-and-under trainers around the world to try and get sales back on track, so perhaps this can help. However, there seems very little to be excited about, while the stock isn’t particularly cheap at 23 times forward earnings.

I see more attractive opportunities elsewhere.

Ben McPoland does not own shares of any company mentioned.

Nvidia

What it does: Nvidia is an artificial intelligence company best known for producing graphics processing units.

By Charlie Keough. I recently felt it was the right time to lock in some of the profits I’d made from Nvidia (NASDAQ: NVDA).

Although I still own some shares, after rising 160.1% in the last 12 months, I’m cautious that the stock could be overvalued right now.

Firstly, it currently trades on 70.7 times earnings, way above the S&P 500 average of 23. Furthermore, its price-to-sales ratio is 39.5.

Those sorts of readings could prompt a share price correction. While the stock has been soaring, I’m worried we could see its share price recoil at the first sign of a slowdown in growth.

I’m in no rush to offload the remaining shares I own. I’m bullish on Nvidia for the long run. The artificial intelligence sector will continue to expand and Nvidia is a major player in the space.

But I think it’s a smart move to take some of the money I’ve made and reinvest it elsewhere. If its share price takes a tumble, maybe at that point I’ll reconsider buying some more stock at a cheaper price.

Charlie Keough owns shares in Nvidia.

Spire Healthcare Group

What it does: Spire Healthcare Group runs 39 hospitals and over 50 clinics, medical centres and consulting rooms in the UK.

Private healthcare group Spire Healthcare Group’s (LSE:SPI) has fallen sharply since 22 May. On this date, Conservative prime minister Rishi Sunak shocked the nation by announcing a general election in early July.

Why was this significant? At that time, Labour had a gigantic lead in the polls, one which it maintained up to polling day. So expectations of Keir Starmer imminently entering Downing Street and shaking up the NHS spooked investors.

Strain on the public healthcare system has driven revenues sharply higher at Spire in recent years. They rose 13.4% in 2023 as patients used private medical insurance or self-paid to sidestep long NHS waiting times.

Look, there’s no guarantee that the NHS will improve immeasurably following Labour’s victory. Parties often break manifesto pledges. What’s more, overall NHS service levels may remain poor as the UK’s elderly population rapidly grows. Either scenario could continue to support the private healthcare sector.

However, I sold just over half of my Spire Healthcare shares (which I’d held since mid-2022) in response to this fresh risk. And I’ve subsequently reinvested my profits elsewhere to rebalance my portfolio.

Royston Wild owns shares in Spire Healthcare Group.

The post 5 shares that Fools have been selling appeared first on The Motley Fool UK.

Here’s why I’d be willing to buy some shares when I next have some investable cash.

Private healthcare

Spire is a private healthcare firm with 40 private hospitals and eight clinics. The business caters to those individuals with private medical insurance, as well as others willing to pay as a one-off to have private medical care. Interestingly, it also helps the NHS with some services as the ailing state-backed provider continues to struggle with backlogs.

Spire shares have been rising in recent years. Over a 12-month period they’re up 11% from 215p at this time last year, to current levels of 239p. Going back even further, an impressive rise of 75% from 136p to current levels is hard to ignore.

My investment case

The current state of the NHS is where my belief that further growth is on the cards. Waiting lists are only rising, and many are turning to the private sector for help — those who can, at least.

Furthermore, with resources stretched, the NHS is already turning to providers like Spire to lend a hand. As the population is growing, and ageing, this reliance could also grow. Both aspects could help boost Spire’s performance and returns.

There are two issues that worry me for Spire. One is that of the debt levels on its balance sheet. They’re probably a bit higher than I’d like, and this is a worry. Sometimes paying down debt can take precedence over returns, and can hurt investor sentiment too.

The other issue I have is an overhaul of the NHS could mean the government could end outsourcing operations to private firms. At present, Spire’s NHS revenues are growing nicely and contributing to the firm’s growth. If this were to end, performance and returns could be dented.

Back to the bull case then, I can’t see the NHS radically changing overnight. Such an endeavour can take years, if not decades, especially with the current economic climate as it is. Spire’s recent results have only shown performance growth, and I’m confident this trend will continue.

Next, Spire shares offer a small dividend yield of just under 1%. I can see this level of return growing if performance continues on an upward trajectory. Although, I do understand that dividends are never guaranteed.

Finally, based on analyst forecasts, the shares look cheap on a forward price-to-earnings growth ratio of 0.8. Any reading below one can indicate a share is undervalued. However, I do understand forecasts don’t always come to fruition.

Final thoughts

I only see the NHS’ reliance on private firms, and people looking to go private for medical treatment, spiking in the years to come. This could benefit Spire, if you ask me.

Overall, solid growth prospects, an enticing valuation, and potentially growing returns help my investment case.

The post Up 75% in 5 years, I reckon this FTSE 250 still has lots to give! appeared first on The Motley Fool UK.

I plan on buying shares in these three companies before their prices take off.

A fledgling pharma firm on the rise

Belfast-based diagnostics and testing company Diaceutics (LSE:DXRX) serves 20 of the 30 largest pharmaceutical companies worldwide. Its products help streamline the development and launch of specialised medicines.

Despite many high-profile clients, it’s essentially a penny stock with an £88m market cap and 104p share price. Besides a brief surge in 2020, the share price has traded around 100p for the past five years.

Earnings have been declining at an average annual rate of 17.7% and profit margins are down to 0.03% from 0.8% last year. With a price-to-sales (P/S) ratio of 4, it’s on par with the industry average.

So why do I think it’s got potential?

For one, a significant number of insiders recently started buying the shares. This is usually a good indicator that the company is expected to profit soon. Approximately 33,564 shares were bought by insiders recently, while it’s been over nine months since any were sold.

And it hasn’t gone unnoticed. Consensus from several analysts forecast a price rise of 60% on average over the next 12 months. Using a discounted cash flow model, analysts estimate the shares to be undervalued by 78%.

The booming mid-cap pharma stock

Spire Healthcare Group (LSE:SPI) is the second-largest provider of private healthcare in the UK. The FTSE 250 stock shot up after Covid and has been doing well since. It gained 10% this past year and is up 75% in the past five years. 

Despite the growth, future cash flows estimate the share price to be 65.8% below fair value. Checking analyst’s forecasts, there’s a good consensus that the price could rise 26% in the next 12 months.

So what’s the catch?

Spire has a fair amount of debt and limited operating income to cover the interest payments. Its interest coverage ratio is only 1.4, so even a small decline in income could reduce its ability to service debt. Although it’s doing well, the private healthcare market is highly competitive so it must stay ahead of the curve to avoid defaulting on debt.

The FTSE 100 pharma giant with promise

Hikma Pharmaceuticals (LSE:HIK) has had lacklustre performance over the past five years, up only 1.6%. Now at £17.88, the share price crashed hard in 2022 and has struggled to break back above £20 since. 

What’s more, some of its biggest-selling generic drugs are coming off patent soon, so it’s at risk of losing that market share to competitors.

So why do I think it’s got potential?

The firm has been expanding rapidly, acquiring new business and building new facilities. Its injectable and generic drug businesses are in high demand and it has the resources to meet this need. Future cash flow estimates indicate the share price could be trading at almost 30% below fair value. Based on consensus from several analysts, the price rise is expected to grow 28% in the next 12 months.

The post I’m considering these 3 undervalued pharma stocks to buy for my portfolio in April appeared first on The Motley Fool UK.

Spire Healthcare Group

The poor state of the National Health Service (NHS) makes Spire Healthcare Group (LSE:SPI) an attractive investment today. Demand for private healthcare is likely to continue rising as patients seek to avoid long waiting lists.

Fresh Office for National Statistics research shows that almost 10m people are either waiting for a hospital appointment or to begin receiving NHS treatment. This backlog will likely take years to cut substantially, a challenge made all the more difficult by the growing healthcare needs of an ageing population.

It’s why I expect demand for Spire’s services from both self-pay patients and those using private medical insurance to keep soaring. Private revenues jumped 9.5% year on year in 2023, to £959.7m which, in turn, pushed operating profit almost a third higher, to £126.2m.

Spire can also expect further business from the NHS to help cut those massive waiting lists. NHS-related revenues leapt 15.5% in 2023, to £341.1m. And Spire has advised that “there could be increased commissioning” further down the line.

Reflecting this bright outlook, City analysts expect annual earnings growth here to average 34% through to 2026. This leaves the FTSE 250 firm trading on a forward price-to-earnings growth (PEG) ratio of 0.8.

Any reading below 1 indicates that a stock is undervalued. Despite the threat of potential staffing shortages, I’m considering adding more Spire shares to my portfolio.

Antofagasta

I also think getting exposure to copper could be a good idea today. Prices of the essential metal just struck 14-month highs of $9,300 a tonne on mounting supply risks. And bets of further rises are growing on hopes of recovering Chinese demand.

Analysts at Citi, for instance, expect copper values to hit $12,000 within the next two years.

Purchasing a copper-backed exchange-traded fund (ETF) could allow me to exploit any further price rises. But I’d rather buy shares in a dividend-paying mining stock. This strategy would also provide me with an income.

Antofagasta (LSE:ANTO) is one such stock to consider buying today. For this year the Chile-focused miner carries a dividend yield of 1.2%, a figure that rises steadily through to 2026.

While some other copper stocks offer larger yields, Antofagasta has one large advantage: a string of world-class assets that could help it deliver sector-beating returns. This includes the Los Pelambres mine where it is steadily ramping up production.

The FTSE 100 firm now trades on a price-to-earnings (P/E) ratio of 35.6 times. A high figure such as this could cause a share price correction if news suddenly worsens. Yet on balance, I still believe it’s a top stock to consider owning for the next several years.

The post 2 FTSE 100 and FTSE 250 shares I’d consider buying to hold for 5 years! appeared first on The Motley Fool UK.

The best we can do as investors is to research as much as possible before buying, and then to quickly react if/when things change.

As things stand, I believe this UK blue-chip share will deliver impressive shareholder returns. It’s why I hold it in my Stocks and Shares ISA right now.

Here’s why I believe Spire Healthcare (LSE:SPI) is a top pick for me, especially at current prices.

Soaring sales

Years of underinvestment in the National Health Service (NHS) have decimated service levels and pushed waiting lists to record highs. According to researcher British Social Attitudes, fewer than one in four Britons are now satisfied with the service. This is the lowest figure since records began 41 years ago.

It’s no coincidence that, at the same time, demand for private healthcare — either through self-pay or private medical insurance — is rocketing. FTSE 250-quoted Spire is one big winner from this boom.

It’s one of the UK’s largest independent healthcare groups, with 39 hospitals in its portfolio and dozens more clinics and medical centres. Last year, it saw revenues soar 13.1% from 2022 levels, while operating profit jumped 32.3% year on year.

Cheap as chips

Changes to NHS funding could significantly curtail Spire’s profits potential. But as things stand, future governments (regardless of party) are still likely to struggle to improve the service as the UK’s rapidly ageing population balloons. So demand for private healthcare providers like this should remain robust.

This is why, despite the threat of medical staff shortages, City analysts expect Spire’s earnings to keep soaring through to 2026 at least. This can be seen in the graphic above.

These predictions also leave Spire shares trading on a price-to-earnings growth (PEG) ratio below the value watermark of 1.

Dividend growth too

Spire is more than just an exciting value and growth stock too. Dividends here have rebounded strongly since the end of the Covid-19 crisis. And City analysts expect them to continue rapidly rising.

On the downside, the healthcare giant doesn’t offer especially large dividend yields at current prices of 231.5p per share. For 2024, the reading comes in at just 1.1%.

But this isn’t a dealbreaker to me. As a long-term investor, I’m also seeking companies that can grow the dividend over time to offset the impact of inflation. And Spire could be in great shape to grow cash rewards rapidly for the reasons I mention.

Indeed, its dividend yield marches to an improved 2% for 2026, almost double this year’s level.

I believe Spire could be one of the best all-rounders on the FTSE 250 today.

The post A cheap FTSE 250 share I’d love to own forever! appeared first on The Motley Fool UK.