Image source: Getty Images
After years of being overshadowed by their FTSE 100 counterparts, FTSE 250 shares are starting to look interesting again. As interest rates begin to fall and the economic outlook gradually improves, investors are beginning to reappraise the UK’s mid-cap index.
The FTSE 250’s home to many companies with strong fundamentals and room to grow, but whose share prices remain well below pre-pandemic highs. For long-term investors, this could be a rare opportunity to pick up quality businesses at a discount.
Here are two FTSE 250 stocks I think are worth a closer look.
An undervalued income stock with niche appeal
OSB Group‘s (LSE: OSB) a specialist lender focused on buy-to-let and residential mortgages, as well as development finance. While most high street banks serve the mass market, OSB targets underserved segments with bespoke lending solutions. This gives it an edge in terms of pricing and customer loyalty, but it also invites competition from bigger banks with deeper pockets.
At the time of writing, the stock trades on a price-to-earnings (P/E) ratio of just 6.59, making it look seriously undervalued compared to many of its peers. On top of that, it offers a generous dividend yield of 6.73%, which is well-covered by earnings and supported by a strong balance sheet.
The bank has consistently delivered solid profits and maintained a healthy loan book. That said, interest rate volatility and changes in property demand could affect margins. Competition in the mortgage space is also fierce, and any misstep could threaten its profits.
Still, for those seeking a mix of value, income, and niche exposure, this FTSE 250 stock looks promising. I’ve held shares in the bank for some time now and still think it’s a top stock to consider in 2025.
The comeback king of the high street
Currys (LSE: CURY) isn’t usually the first name investors think of when it comes to growth. Yet over the past year, the consumer electronics retailer has seen its market-cap surge 58.4%. It’s quietly fighting back against e-commerce rivals and seems to be winning more battles than expected.
Despite continued pressure on the traditional retail sector, Currys has trimmed costs, improved margins and focused on customer service. Its omnichannel model, combining physical stores with a strong online presence, allows it to compete on convenience as well as price. Crucially, it’s doing this while maintaining growth, as shown by its astonishingly low P/E growth (PEG) ratio of just 0.02. This suggests the market hasn’t yet priced in its earnings potential.
However, the path ahead isn’t without risk. Consumer confidence remains fragile and competition from Amazon and other online retailers is relentless. A misstep on pricing, logistics or tech could eat into margins.
Still, if Currys continues to execute well, there seems to be a lot of room for even more growth. I’m glad I bought some shares a few months back and I think investors would be wise to consider doing the same today.
Locking in future value
The FTSE 250 has long been a fertile hunting ground for investors willing to look beyond the big names. Both OSB Group and Currys have enjoyed strong price performance lately but still look undervalued.
While risks remain, the reward potential looks increasingly attractive – especially for those prepared to invest ahead of the curve.
