Have £2,000 to invest this summer? I’d buy these 3 FTSE 250 stocks today

Invest your summer savings in high performers like Games Workshop plc (LON: GAW) this year.

| 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.

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.

Fool readers are likely excited to take in the first few weeks of summer. Hopefully, you have formed and followed good habits in 2019. Some of you may be pleased to find out you have saved £2,000 or more just in time for the sunny season!

It is tempting to spend that extra dough on recreational activities or a luxury item or two. Instead, let’s direct that summer enthusiasm to our portfolios. Today I want to look at three stocks on the FTSE 250 that have rewarded investors handsomely in recent years. This is the best way to treat yourself this summer!

JD Wetherspoon

Remember those recreational activities you were considering? JD Wetherspoon (LSE: JDW) is a company that prides itself on a popular and thirst-quenching recreation. Shares have jumped 40% over the past two years but the stock still boasts a solid price-to-earnings (P/E) ratio of 18 at the time of writing.

JD Wetherspoon has thrived under the leadership of its hands-on founder and chairman, Timothy Martin. Martin routinely visits over a dozen Wetherspoon pub outlets per week. This meticulous approach has contributed to impressive sales and earnings growth over the last half decade. He has predicted that a no-deal Brexit would provide a boon for business in the form of lower prices.

I am bullish on JD Wetherspoon going forward. In addition to its favourable P/E, the stock fell out of technically overbought territory as of close on June 25. An unseasonably warm summer season is in the forecast and should provide another boost to Wetherspoon’s pub traffic.

Games Workshop

Games Workshop (LSE: GAW) deals in recreational activities that don’t carry a summer appeal. This should not deter Foolish investors.

The miniature wargaming manufacturing company has achieved remarkable sales and earnings growth in recent years. Rain or shine, this is a stock and company that is thriving on the back of a massive spike in interest for tabletop games. Don’t come away thinking this is some strange fad or passing trend!

Tabletop games are filling a void that was thought to be left abandoned due to the rise of digital media. Indeed, it is the craving for niche products that offer social interaction and a physical experience that is driving this trend. What Foolish investors lose in mass appeal, they are gaining in betting on a fiercely passionate and still-growing user base.

HomeServe

HomeServe (LSE: HSV) provides emergency, repair, and heating installation services to its broad range of customers. If you are like me and you can barely change a lightbulb, straight-to-home trade services are a godsend.

HomeServe has achieved solid growth providing services to anti-handymen like myself. Its Membership business in North America has performed very well while the company has achieved a solid group retention rate of 82% across all geographies. Revenue to March 2019 rose to a record $1 billion. Solid growth spurred the company to announce a dividend increase of 12%, which represents a 1.8% yield at the time of writing. HomeServe carries even more appeal as it moves into the lucrative North American home warranty market.

HomeServe’s P/E sat at a pricey 36 as of this writing. Shares have dropped out of technically overbought territory in June, which should inspire investors to think about an entry point this summer.

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.

Ambrose has no position in any of the shares mentioned. The Motley Fool UK has recommended Homeserve. 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

US Stock

The Nvidia share price falls! Here’s what I think happens next for the S&P 500

Jon Smith reviews the overnight results from Nvidia and explains why this could stall the S&P 500 performance through to…

Read more »

Investing Articles

Down 15% today, is this FTSE 100 share too cheap for me to miss?

JD Sports' share price has tanked after the FTSE 100 share released another profit warning. Is this the opportunity I've…

Read more »

Investing Articles

Up 8% today, is this FTSE 100 growth stock a slam-dunk buy for me?

Halma's share price is soaring thanks to another headline-grabbing trading update. Is the FTSE 100 stock now too good for…

Read more »

Investing Articles

With a P/E ratio of just 10.5 is now a brilliant time to buy a cut-price FTSE 250 tracker?

Harvey Jones says a recent dip in the FTSE 250 leaves the index trading at bargain levels. One stock in…

Read more »

Warren Buffett at a Berkshire Hathaway AGM
Investing Articles

To build a passive income flow, I’d follow this Warren Buffett approach

Warren Buffett has set up passive income streams most people can only dream about. Our writer sees some practical lessons…

Read more »

Growth Shares

As the boohoo share price falls, could it become a penny stock in 2025?

Jon Smith outlines some of the recent problems involving the boohoo share price and considers if things could get even…

Read more »

Young Asian woman with head in hands at her desk
Investing Articles

Here are the worst-performing FTSE 100 shares over the last 5 years

These five FTSE 100 shares have been complete duds over the last half decade. But is there potential for a…

Read more »

Investing Articles

Nvidia stock has tripled this year! Can it keep rising?

Nvidia's latest sales update showed strong growth and the stock's been on a tear so far in 2024. So is…

Read more »