Picture supply: Getty Photographs
I’m hoping for a return to progress for the FTSE 250 in 2025 after a disappointing few years. However which shares do I feel may lead the mid-cap index? My eyes have fallen on these three.
Healthcare earnings
I feel 2025 might be the 12 months when a few of the FTSE 250’s undervalued actual property funding trusts (REITs) may make a comeback. Major Well being Properties (LSE: PHP) is one, after its share value ended 2024 on a little bit of a slide.
Please observe that tax therapy is determined by the person circumstances of every shopper and could also be topic to vary in future. The content material on this article is offered for info functions solely. It’s not supposed to be, neither does it represent, any type of tax recommendation.
The corporate owns healthcare amenities that it rents out largely to GPs, many within the NHS. With comparatively dependable rental earnings, success doesn’t depend upon property valuations.
Unsure valuation
I feel its belongings look good anyway. On the 2024 interim, adjusted web tangible belongings per share stood at 105p. The share value is simply 89p on the time of writing.
That’s a non-standard accounting measure, and property valuations have been unstable, so there’s threat there.
However with robust earnings progress forecast for 2025, and a ahead dividend yield of 8.2%, I feel this belief may deserve a better ranking in 2025.
Low-cost TV
The primary half of 2024 made it seem to be an ITV (LSE: ITV) restoration was on, although it cooled off. We’re a good 12-month achieve of 17%, however I nonetheless suppose the shares might be too low-cost.
The robust economic system is placing the squeeze on promoting spend. However we simply heard that December inflation was down, which hopefully bodes nicely.
The agency’s Q3 replace spoke of income being impacted by the phasing of deliveries and the 2023 writers’ and actors’ strike within the US. And that gave the share value successful on the day.
Ahead, not again
ITV nonetheless mentioned “We stay on observe to ship at the very least £750 million of digital revenues in 2026“. And it sees solely a small fall in 2024 ITVX streaming income.
We’ve a ahead dividend yield of seven%, with an anticipated FY 2024 price-to-earnings (P/E) ratio of simply 9.
There’s an earnings fall forecast for 2025, which may preserve the shares down. But when we see early indicators of the expansion predicted for 2026, I feel ITV may beat the FTSE 250 this 12 months.
Plastic, improbable
At polymer specialist Victrex (LSE: VCT), seeing a five-year share value fall of 57% and a trailing P/E of fifty made me pause for breath.
Wanting nearer although, I see issues I like, together with a forecast 6.8% dividend yield.
After a couple of years of falling earnings, forecasts present a return to progress beginning with a lift in 2025. They put the ahead P/E at 17, dropping as little as 11 by 2027.
Protecting moat
On these valuation measures, I feel we may have strong progress traits. However I wish to see a aggressive benefit to again that up.
Victrex makes high-performance polymers for safety-critical makes use of, and a variety of them are patented merchandise. That appears like a security moat.
The largest threat for me personally is that I haven’t researched the corporate correctly but. However I feel buyers on the lookout for 2025 winners ought to take into account doing so.
