By - Sreenivas D Ajankar
Highlights
- FTSE 250 index constitutes stocks with a slightly lower market cap but still has the potential to grow and be part of the FTSE100 index.
- The index, also known as the mid-cap index, has given a total year to date return of 15.18% as of 09 December 2021 market closing.
Stock markets across the globe usually have different indices according to the market cap of the companies. In the UK, FTSE 100 index covers the top 100 companies by market cap, while FTSE 250 index has the next 250 stocks as part of the index. FTSE 250 index, also known as a mid-cap index, has given a total year to date return of 15.18% as of 09 December 2021 market closing.
FTSE 250 index constitutes stocks with a slightly lower market cap but still has the potential to grow and be part of the FTSE100 index. Many investors prefer to invest in mid-cap stocks as these stocks have the ability to grow and give a high return on investment compared to blue-chip stocks. However, not all stocks offer similar returns, so researching the company’s business model and economy before selecting the stocks for investment is advisable.
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Let us look at top FTSE listed mid-cap stocks and explore their investment prospects:
The company operates in the industrial segment offering various products and services to its clients in the UK and other European countries. The business reported a solid organic growth with a 46% revenue surge at £787.4 million for the financial year ended 30 September 2021. The company’s adjusted operating profit stood at £148.7 million, a rise of 71%. The company management has a positive outlook for the new financial year and expects 10% revenue growth and a margin of 18% to 19%.
Diploma Plc’s current market cap stands at £4,184.6 million. In the last one year, the stock has given a 54.04% return to its shareholders.
The ancillary services provider to the shipping industry has operations in 23 countries. It offers broking, financial and research services to its clients. The revival in the shipping industry after the Covid-19 pandemic has benefitted the company. During the first six months of 2021, the company reported £190.1 million in revenue with an underlying profit before tax of £27.5 million. In the second half of the financial year, the company continues to witness a strong trading environment. It anticipates a profit before tax of not less than £65 million for the entire year.
Clarkson Plc’s current market cap stands at £1,174.8 million. In the last one year, the stock has given a 49.2% return to its shareholders.
The company operates in the commercial real estate segment. It provides workspace to different businesses in Germany. For the six months ended 30 September 2021, the company reported total revenue of €88.4 million, while its profit before tax rose by 25.7% to €78.2 million. The economic revival after the Covid-19 pandemic may boost demand for office space hence benefiting the company’s business.
Sirius Real Estate’s current market cap stands at £1,662.9 million. In the last one year, the stock has given a 48.90% return to its shareholders.
The veterinary product manufacturer has business operations in European countries and North America. The company reported strong business growth in the US market and outperformed the sector. The animal market continues to outshine, reporting solid business growth. For the financial year ended 30 June 2021, the company reported a 21% rise in revenue at £608 million.
Dechra Pharmaceuticals Plc’s current market cap stands at £5,471.4 million. In the last one year, the stock has given a 55.9% return to its shareholders.
The company operates in the recruitment consultancy business offering executive search and recruitment services to the organisation. It has operations in the UK and the rest of Europe. The company’s business has witnessed positive momentum in 2021 because of economic revival and strong demand for a skilled workforce. The group business reported growth of 16% in October 2021 and 26% in November 2021 on constant currencies basis. As a result, the company expects full-year operating profit to be about £165 million.
PageGroup Plc’s current market cap stands at £2,172.1 million. In the last one year, the stock has given a 51.40% return to its shareholders.