By - Sreenivas D Ajankar
Highlights
- FTSE 250 index constituent mid-cap stocks attract many investors as these stocks can outperform and give a high investment return.
- Investors prefer investing in mid-cap companies as they have growth potential and can be part of a large-cap category.
FTSE 250 index constitutes the mid-cap stocks whose market capitalisation is lower than the large-cap companies. These companies are majorly domestically focused and present a better picture of the economy. Many investors are attracted to these stocks and prefer investing in mid-cap stocks as historically these stocks have outperformed and given high returns compared to the blue-chip index, FTSE100.
Also, investors prefer investing in mid-cap companies as they still have the potential to grow and can be part of a large-cap category which can only be possible through a rise in the market cap of the company’s stock.
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Let us explore ten FTSE listed mid-cap stocks and their investment prospects:
The biotechnology company operates in an animal genetics business through its various subsidiaries. It provides embryos and semen to breed livestock like pigs and also provides other technical services to farmers. The company continues to witness strong demand and the addition of new clients for its porcine and bovine genetics, which improve animal protein production and reduce the use of energy and water during production stages. It reported revenue of £574.3 million, while its profit before tax was £84.8 million for six months ended 30 June 2021.
Genus Plc’s current market cap stands at £3,630.36 million. In the last one year, the stock has given a 35.14% return to its shareholders as of 27 October 2021.
The company operates in the housebuilding segment offering houses of various sizes and selling its inventory under different brand names. The company has witnessed high growth in its revenue and profits primarily due to increased customer demand for new houses after the pandemic. During the first six months of 2021, it delivered 5,351 homes to buyers and reported adjusted revenue of £1,259 million, while its operating profit was £175.5 million. The company’s revenue and profit growth are expected to continue, signalled by a strong forward sales position of £3 billion.
Vistry Group Plc’s current market cap stands at £2,649.77 million. In the last one year, the stock has given a 101.61% return to its shareholders as of 27 October 2021.
The company operates in the technology sector, offering its clients networking, software licensing and cloud services. For the financial year ended 31 July 2021, it reported strong organic growth with reported revenue at £1,156.7 million, a rise of 7.4%, while its gross profit rose by 17.2% at £276.4 million. As a result of good performance, the company has declared a final dividend of 14.4p per share and a special dividend of 20.5p per share. The company has a positive outlook for the new financial year and expects double-digit growth in gross profits for 2022.
Softcat Plc’s current market cap stands at £3,957.04 million. In the last one year, the stock has given a 75.09% return to its shareholders as of 27 October 2021.
The company provides ventilation products to residential and commercial buildings. Its products include extractor fans, radiators, fan coils and heat recovery units. The company reported a 25.8% rise in revenue at £272.6 million, while its operating profit rose by 68.8% at £56.9 million in the financial year ended 31 July 2021. High revenue was contributed by growth in its core business, while the company also reported inorganic growth by completing three acquisitions in the year.
Volution Group Plc’s current market cap stands at £971.81 million. In the last one year, the stock has given a 127.06% return to its shareholders as of 27 October 2021.
The company manages a network of retail chains for luxury goods dealing in timepieces and luxury jewellers. It operates in the UK and the US market. The company reported revenue of £297.5 million in the first quarter ended 1 August 2021. The UK market contributes a major part of the revenue at £221.7 million, while the US sales were at £75.8 million. Higher-income was mainly due to products mix, multi-channel strategy and high demand in the domestic market. The company has a strong outlook for the rest of the year and plans to open new stores in the US and the UK market.
Watches of Switzerland Group Plc’s current market cap stands at £2,729.79 million. In the last one year, the stock has given a 175.30% return to its shareholders as of 27 October 2021.
The company is engaged in the media business offering content through newspapers and digital platforms in the UK and other countries. The company’s stock was included in the FTSE250 index in August 2021 following a consistent rise in the stock price this year. The company reported revenue of £302.3 million, while its operating profit was at £68.9 million during the 26 weeks to 27 June 2021. Its digital revenue reported significant growth and added 6.7 million customer registrations. In addition, the company is confident of achieving its target of 10 million registrations by the end of 2022.
Reach Plc’s current market cap stands at £1,049.25 million. In the last one year, the stock has given a 201.62% return to its shareholders as of 27 October 2021.
The company operates in the food retailing segment offering a range of bakery products at its shops and franchisee stores. It reported a 3.5% rise in third-quarter revenue despite facing multiple issues like staff shortage, supply chain disruption and food inflation. The company has over 2100 outlets in the UK and plans to open 100+ stores in the upcoming quarters. The company expects a high growth margin from its range of vegan foods and drinks, and it has kept an ambitious target to double its revenue to £2.4 billion by 2026 and open at least 3000 shops.
Greggs Plc’s current market cap stands at £3,147.73 million. In the last one year, the stock has given a 123.52% return to its shareholders as of 27 October 2021.
The company manages retail stores across diversified categories like clothing, food, supermarket. The company’s underlying business reported recovery in sales and profit following ease in the lockdown restrictions. Overall group revenue was up by 29.1% in the 19 weeks to 14 August. High pent-up demand and increased footfall in stores continue to benefit the company’s revenue. As a result, the company expects its profit before tax in the range of £300-350 million for the full financial year.
Marks and Spencer Group Plc’s current market cap stands at £3,640.60 million. In the last one year, the stock has given a 93.98% return to its shareholders as of 27 October 2021.
The industrial service company offers various technical products and services in the UK and European markets. All business divisions of the company reported excellent growth in the six months ended 31 March 2021. Its revenue was up by 29% at £365.2 million, while its operating profit was £66.6 million. Cost savings, restructuring and outstanding performance by the acquisition contributed to higher revenue.
Diploma Plc’s current market cap stands at £3,759.33 million. In the last one year, the stock has given a 33.48% return to its shareholders as of 27 October 2021.
The financial sector company offers insurance, protection, and other related products in the UK market. The company witnessed higher new business profit in the first six months of 2021. It reported an adjusted operating profit of £90 million. The company has a positive outlook and expects to deliver sustainable and profitable growth across its different financial products.
Just Group Plc’s current market cap stands at £970.82 million. In the last one year, the stock has given a 102.34% return to its shareholders.