Are These The 5 Best Stocks In The FTSE 250?

Should you buy John Wood Group PLC (LON:WG), Laird PLC (LON:LRD), Redrow plc (LON:RDW), Tate & Lyle PLC (LON:TATE) and RPC Group plc (LON:RPC)?

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Wood Group

While Wood Group’s (LSE: WG) share price has fallen by 16% during the course of the last year, the company’s bottom line continues to outperform most of its sector peers. For example, while a lower oil price has caused many oil stocks to post severe declines in profitability, Wood Group is all set to report an increase in its bottom line for 2014 of 21%.

And, while 2015’s forecast decline of 2% is somewhat disappointing, it would still represent a relatively good performance. Furthermore, with Wood Group trading on a price to earnings (P/E) ratio of just 9.1, it seems to be extremely cheap and, although its bottom line may be somewhat volatile moving forward, it seems to be a great buy at the present time.

Laird

Although ARM dominates the UK tech scene, sector peer Laird (LSE: LRD) seems to have a very bright future ahead of it. For example, it is forecast to increase its bottom line by 16% in the current year, followed by growth of 11% next year. This, when combined with a P/E ratio of 16.5, equates to a price to earnings growth (PEG) ratio of just 0.9, which indicates that Laird offers growth at a reasonable price.

Should you invest £1,000 in Burberry Group Plc right now?

When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets. And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Burberry Group Plc made the list?

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And, unlike many of its sector peers, Laird has a top notch yield, too. It currently yields 4%, which makes it highly appealing for income investors as well as for growth investors, too.

Redrow

With there being a consensus among the major political parties regarding house building, now could be a good time to buy house builders such as Redrow (LSE: RDW). Certainly, more houses are required than are currently being built, and this is helping Redrow to increase its bottom line by a forecast 23% next year, and a further 20% in the year after that.

Despite this excellent growth rate, Redrow trades on a P/E ratio of just 9.8. This seems to be unjustifiably cheap when the company’s growth prospects are taken into account and, as such, it could be a top performer moving forward.

Tate & Lyle

While shares in Tate & Lyle (LSE: TATE) have disappointed in the last year, being down 13%, the future could be much brighter for the sugar producer. That’s because it is forecast to make a comeback from a challenging 2015 financial year (when it is forecast to have posted a decline in earnings of 31%) by increasing its bottom line by 18% next year.

And, while Tate & Lyle trades on a relatively high P/E ratio of 17, this strong growth rate means that it has an appealing PEG of 0.9. Furthermore, with a yield of 4.3%, its total return could be somewhat impressive moving forward.

RPC

Packaging company RPC (LSE: RPC) has increased its bottom line in four of the last five years, with it averaging growth of 26% per annum. While this rate of growth is not forecast to continue over the next couple of years, RPC offers relative reliability when it comes to earnings growth and this could appeal to investors during an uncertain period.

In addition, RPC also seems to offer growth at a very reasonable price, with it having a PEG ratio of just 1. And, with RPC having a well-covered yield of 2.9% that is forecast to grow to as much as 3.5% next year, it could prove to be a winning investment over the medium term.

Should you invest £1,000 in Burberry Group Plc right now?

When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Burberry Group Plc made the list?

See the 6 stocks

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Peter Stephens owns shares of Laird and Tate & Lyle. The Motley Fool UK has recommended Laird and RPC Group. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

Like buying £1 for 51p

This seems ridiculous, but we almost never see shares looking this cheap. Yet this recent ‘Best Buy Now’ has a price/book ratio of 0.51. In plain English, this means that investors effectively get in on a business that holds £1 of assets for every 51p they invest!

Of course, this is the stock market where money is always at risk — these valuations can change and there are no guarantees. But some risks are a LOT more interesting than others, and at The Motley Fool we believe this company is amongst them.

What’s more, it currently boasts a stellar dividend yield of around 8.5%, and right now it’s possible for investors to jump aboard at near-historic lows. Want to get the name for yourself?

See the full investment case

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