FTSE 250 stocks have been on a roll over the last six months, rising by over 10% since October 2022. Sadly, this upward momentum has seemingly disappeared part-way through the first quarter of 2023.
The index is down by just over 3% since the start of the year. But the same can’t be said for all its constituents. So, let’s look at the biggest winners and losers over the last three months.
The stragglers
While the FTSE 250 may be relatively flat overall, quite a few companies across multiple industries aren’t as lucky.
| FTSE 250 Stock | Industry | 2023 Q1 Performance | 12-Month Performance |
|---|---|---|---|
| 888 Holdings | Consumer Discretionary | -36.8% | -70.8% |
| Direct Line Insurance | Insurance | -34.6% | -48.7% |
| Ferrexpo | Mining | -34.3% | -32.9% |
| Spirent Communications | Telecommunications | -32.8% | -26.8% |
| Hunting | Industrials | -29.8% | -24.6% |
The worst-performing stock in the FTSE 250 so far this year is 888 Holdings. The gaming company has steadily lost almost 90% of its market cap since late 2021 on the back of a major fine from the UK Gambling Commission. Needless to say, news of money laundering isn’t exactly good for business. And while the firm is in the process of getting its house in order under new leadership, the jury is still out on whether its reputation can recover.
As for Direct Line, the insurance business is suffering inflation costs on car repairs for its automotive insurance business. So much so that profits dropped back into the red from a gain of £446m in 2021 to a loss of £45.1m in 2022. Pairing that with dividends being suspended, shareholders quickly ran to the exits in January.
Like many mining stocks, Ferrexpo is suffering from the wind down in iron ore prices. But a more concerning problem is that most of its operations lie within Ukraine and the war continues to rage. With its performance unlikely to recover until after the war ends, its share price remains depressed.
Meanwhile, macroeconomic conditions are driving down demand for Spirent Communications testing and assurance services, causing sales to stagnate. And while Hunting posted stellar full-year results for 2022, the recent collapse of natural gas prices has many investors concerned that this momentum won’t continue into 2023.
Winning FTSE 250 stocks
Of course, not all British businesses were in the gutter this quarter.
| FTSE 250 Stock | Industry | 2023 Q1 Performance | 12-Month Performance |
|---|---|---|---|
| J D Wetherspoon | Restaurants | +49.8% | -16.5% |
| John Wood Group | Industrials | +49.6% | +21.3% |
| ASOS | Consumer Discretionary | +44.7% | -53.3% |
| Aston Martin Lagonda | Automotive | +43.2% | -38.3% |
| easyJet | Travel & Leisure | +37.5% | -12.7% |
Many people are finding refuge in the pub from the cost-of-living crisis helping J D Weatherspoon bounce back from its pandemic woes. The engineering company, John Wood, has received several cash offers sending shares surging. And the ASOS fashion brand is making headway in its turnaround plan after its pandemic tailwinds evolved into headwinds.
What about Aston Martin? The luxury car maker seems to be successfully passing on rising costs to its richest clientele while simultaneously boosting volume. The firm’s debt continues to pose problems. But the firm is making a valiant effort in its comeback that investors seemingly like.
And lastly, for easyJet, the continued recovery within the travel industry is boding well for its bottom line. The low-cost carrier is still in the red by £133m. But that’s an £80m improvement compared to a year ago.
