3 FTSE 250 bargain shares I’d buy with £3,000!
I have some spare cash that I’m looking to invest in UK shares. Right now I’m scouring the FTSE 250 stocks for the best cheap shares that money can buy.
Here are three on my radar today. They trade on low price-to-earnings (P/E) ratios and carry dividend yields north of the 3% FTSE 250 average.
Bank of Georgia Group
Emerging market firm Bank of Georgia trades on a forward earnings multiple of 4.3 times and carries a juicy 8.6% dividend yield. This is the sort of irresistible all-round value I’m looking for.
Banks like this one face a tough time if the global economy keeps cooling. In this kind of environment, bad loans can spiral and it can be difficult to grow revenues
That said, I don’t think Bank of Georgia’s low valuation fairly reflects its huge long-term earnings potential. Low financial product penetration in Georgia and soaring GDP growth means demand for its retail banking services is tipped to boom. Adjusted pre-tax profit here rocketed almost 60% year on year in 2022.
The Renewables Infrastructure Group
I’m considering building my existing stake in green energy investor The Renewables Infrastructure Group, too. It trades on a forward P/E ratio of just 11.2 times and carries an 5.5% dividend yield.
The cost of constructing and maintaining wind and solar farms can be colossal. And this can take a big bite out of earnings. But over the long term, I’m still expecting profits here to soar as cleaner energy sources take over from dirty fossil fuels.
I also like this real estate investment trust (REIT) because of its growing exposure to battery storage assets. The volatile nature of renewable energy generation means the use of energy-storage devices is also set to soar in the coming decades.
Traditional broadcasters like Scotland’s STV Group (LSE:STVG) face immense competition on a number of fronts. Streaming giants like Netflix and Amazon have eaten into their audience shares in recent years. They also face competition for views from other media like video games and the internet.
Yet I still think this FTSE 250 share is packed with investment potential. I’m predominantly attracted by its success in the fast-growing streaming segment where the number of registered users of its STV Player platform has just barged through the 5m barrier. This was a full year ahead of schedule.
Viewing figures for free-to-air specialists like STV could receive a boost in the short term, too, as people cut back on paid-for subscriptions. An autumn study from ScotPulse showed that 64% of Scots have either cut back, or intend to cut back, on video-on-demand (VOD) spending as the cost-of-living crisis endures.
The company trades on a P/E ratio of 8.8 times for 2023. It carries a 3.6% dividend yield as well. I think these numbers make it a brilliant value stock to buy right now.
The post 3 FTSE 250 bargain shares I’d buy with £3,000! appeared first on The Motley Fool UK.
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Royston Wild has positions in Renewables Infrastructure Group. The Motley Fool UK has recommended Amazon.com. 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.
Motley Fool UK 2023