With the markets having sold-off in recent months, there may be a number of bargains out there. As such, I’ve searched through every index to find potential value investments. I think I’ve found two such opportunities in the FTSE 250, so let’s take a closer look.
The return of the high street?
One of the most recognisable high street names is Greggs (LSE:GRG). The bakery firm is looking to expand following impressive results.
Despite this, its share price has fallen 28.5% in the past six months. It’s currently trading at 1,880p.
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The business recently released results for the 13 weeks to 1 October. The report showed that sales were up 14.6%, year on year.
Additionally, the company opened 90 new shops on a net basis. This is an indication that the firm has recovered to a position where it can once again focus on expansion, following a difficult period during the pandemic.
What’s more, it declared an interim dividend of 15p per share. This is consistent with last year, and it’s good to know that I could derive income from my investment.
That said, I know this dividend policy may be subject to change in the future.
Greggs is facing inflationary pressures and expects inflation for the whole of 2022 to come in at 9%. However, the real number may be significantly higher.
Although this may be a problem, the business sought to act early and has forward purchased much of its food and energy. This gives me hope that it may not get hit too hard by rising costs.
Emerging markets recovery?
The second company that may be good value for my portfolio is Ashmore (LSE:ASHM). I already own shares in this emerging markets asset manager, but I suspect now may be a good time to add to my position.
The shares are down nearly 12% in the past six months and trade just above the £2 level.
The riskier emerging markets sector has been hit hardest by economic developments, like higher interest rates.
It’s therefore no surprise that Ashmore reported a 32% decline in assets under management for the year ended 30 June.
Furthermore, over the same period, operating profit fell from £192.9m to £119.2m.
While this may seem disappointing, I always remember that Ashmore invests with a long-term mindset.
With a diverse portfolio, including exposure to many up and coming Asian economies, I think the business could produce improved results as the economic shock of the pandemic passes.
It also has an attractive dividend yield of 8.11%, which is one of the highest on the market. I have already benefited from dividend payments as an existing shareholder.
Overall, both of these companies could be in strong positions to grow over the long term. Although Ashmore’s share price has fallen far below my entry level, I will buy more shares soon to reduce my average weighted price. In addition, I’ll buy Greggs shares to gain exposure to the recovering high street.
