2 FTSE 250 growth stocks to buy and hold until 2030

These FTSE 250 growth stocks have the qualities required to outperform over the next 10 years, argues this Fool.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

A young woman sitting on a couch looking at a book in a quiet library space.

Image source: Getty Images

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

Key points

  • Some FTSE 250 growth stocks have more potential than others
  • These companies have unique competitive advantages
  • They could report substantial growth over the next decade

Recently, I have been looking for FTSE 250 growth stocks to add to my portfolio. I am looking for companies with fantastic growth potential over the next decade and a robust competitive advantage to help them achieve their aims. 

Here are two companies I would buy, considering their growth targets for the next couple of years. 

FTSE 250 growth stocks 

The first on my list is Trustpilot (LSE: TRST). As the world becomes more digital, service providers need to show their customers they are trustworthy. Customers also want to know the enterprise they are buying from is not a scam. 

Trustpilot fulfils this niche in the market. The company has built a brand that is well trusted by consumers and businesses alike. This is a tremendous competitive advantage. The group has developed this trusting relationship over the years.

The longer it is able to maintain the relation with users, the more significant the advantage will become. Indeed, I think it would take years and a vast amount of capital for a competitor to achieve the same stakeholder trust and awareness level. 

Of course, this does not guarantee that the business will never face any competition. I think there will always be challenges to its dominance. The company also needs to ensure that it maintains the quality of reviews. If it lets its guard down, the trust between stakeholders will quickly vanish. 

Despite these risks and challenges, I would be happy to buy the stock for my portfolio of FTSE 250 growth shares today, considering its substantial competitive advantages. 

Defensive market

In my opinion, the food industry is one of the most defensive. Humans will always need to eat and drink, so it seems likely there will always be a market for these products. 

That is why I think Premier Foods (LSE: PFD) also deserves a position in my long-term growth portfolio. The owner of the Mr Kipling brand, among others, is coming out of a decade-long slump, which began during the financial crisis. 

However, over the past couple of years, the company has made substantial progress reducing debt, cutting pension liabilities, and freeing up cash to invest in marketing

Now it has removed these chains from around its neck, I think the group is primed for growth over the next decade. It is planning to hike marketing and investment spending further and increase shareholder returns. 

While the food industry is defensive, it is also incredibly competitive. And competition is probably the biggest challenge the group will have to deal with over the next few years. 

Despite this headwind, considering its long-term potential, I am excited about the outlook for the FTSE 250 company. 

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.

Rupert Hargreaves has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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.

More on Investing Articles

Investing Articles

2 cheap shares I’ll consider buying for my ISA in 2025

Harvey Jones will be on the hunt for cheap shares for his ISA in 2025 and these two unsung FTSE…

Read more »

Investing Articles

I am backing the Glencore share price — at a 3-year low — to bounce back in 2025

The Glencore share price has been falling for some time, but Andrew Mackie argues demand for metals will reverse that…

Read more »

Road trip. Father and son travelling together by car
Investing Articles

A 10% dividend yield? There could be significant potential here to earn a second income

Mark Hartley delves into the finances and performance of one of the top-earning dividend stocks in his second income portfolio.

Read more »

happy senior couple using a laptop in their living room to look at their financial budgets
Investing Articles

Charlie Munger recommended shares in this growth company back in 2022. Here’s what’s happened since

One of Charlie Munger’s key insights is that a high P/E ratio shouldn’t put investors off buying shares if the…

Read more »

Investing Articles

What might 2025 have in store for the Aviva share price? Let’s ask the experts

After a rocky five years, the Aviva share price has inched up in 2024. And City forecasters reckon we could…

Read more »

Hand of person putting wood cube block with word VALUE on wooden table
Investing Articles

Trading around an 11-year high, is Tesco’s share price still significantly undervalued?

Although Tesco’s share price has risen a lot in the past few years, it could still have significant value left…

Read more »

Passive income text with pin graph chart on business table
Investing Articles

£11,000 in savings? Investors could consider targeting £5,979 a year of passive income with this FTSE 250 high-yield gem!

This FTSE 250 firm currently delivers a yield of more than double the index’s average, which could generate very sizeable…

Read more »

Young Caucasian woman with pink her studying from her laptop screen
Investing Articles

Does a 9.7% yield and a P/E under 10 make the Legal & General share price a no-brainer?

With a very high dividend yield and a falling P/E forecast, could the Legal & General share price really be…

Read more »