Looking for the best value FTSE 250 shares to buy in the New Year? Here are three I think merit serious attention from savvy investors.
Bank of Georgia
Much will depend on the turbulent political landscape in Georgia. But if the Eurasian country can avoid descending into chaos, Bank of Georgia (LSE:BGEO) should keep delivering ripping earnings growth over time.
At the moment, City analysts are maintaining their bullish forecasts. They think profits will surge 10% in 2025.
This leaves the bank on a forward price-to-earnings (P/E) ratio of 3.6 times, one of the lowest ratings among all of London’s listed banks.
Allied with a 6.8% dividend yield for 2025, the bank offers really decent value in my opinion.
Bank of Georgia’s powerhouse brand and move into digital banking continues to push earnings through the roof. Adjusted profit (excluding its Armenian operations) leapt 17.3% in the third quarter.
A blend of low market penetration and strong economic growth means things look good for the FTSE 250 firm next year.
ITV
Commercial broadcasters like ITV (LSE:ITV) are highly sensitive to economic conditions. If the UK economy continues to struggle, advertising revenues may remain under pressure.
However, there are reasons to be optimistic for the Love Island maker in the New Year. A likely fall in interest rates should bolster advertising sales, which were up 6% in the nine months to September.
Strike action that dogged performance at ITV Studios is also in the rear windscreen. And the popularity of its ITVX streaming platform continues to impress.
Total streaming hours here leapt 14% between January and September, pushing digital advertising revenues 15% higher.
Brokers think ITV’s annual earnings will rise 5% in 2025, meaning it trades on a forward P/E ratio of 7.7 times.
They’re also tipping modest dividend growth that drives the broadcaster’s yield to 9%.
H&T Group
Investors seeking cheap growth and dividend shares should also pay close attention to pawnbroker H&T Group (LSE:HAT).
Earnings here have risen strongly in recent years due to the cost-of-living crisis. City analysts are tipping this trend to continue with an 8% bottom-line rise in the New Year.
This leaves the firm dealing on a corresponding P/E ratio of 6.8 times. It also supports predictions of further dividend growth, resulting in a 5.3% dividend yield.
That yield’s not a showstopper like those of ITV and Bank of Georgia. But it’s still significantly better than the 3.4% average for FTSE 250 shares.
A bright outlook for gold prices, allied with ongoing pressure on consumers’ wallets, suggests revenues should remain robust. Ongoing expansion should also boost earnings growth (it had 281 shops operating as of August, up from 273 a year earlier).
Pawnbrokers like H&T operate in a highly regulated environment. So future profits are at the mercy of changes to lending rules in the UK.
But looking ahead — and certainly for 2025 — I think things are looking rosy for the company.
