2 Cheap FTSE 250 Stocks to Consider Buying in July!

THE FTSE250 has performed quite poorly in the post-pandemic period. At around 20,294 points, it is now trading 16% below the record highs reached in August 2021.

Political and economic turmoil in Britain weighed on the UK’s second-largest stock market index. This is no surprise: just over half of its cumulative revenue comes from these shores.

But as a long-term investor, I think taking a share of the FTSE 250 today could be a good idea. Since its inception in 1992, it has generated an average annual return of 11%.

Buy cheap stocks

Past performance does not guarantee future returns. But this impressive return implies that getting exposure – by buying individual stocks, an index fund, or both – could be a wise investment strategy.

A smart way to do this could be to focus on buying cheap FTSE 250 shares. The theory is that undervalued companies can generate market-beating returns when investors eventually realize their valuation errors and push them higher. It’s a strategy that has proven to be lucrative for investors time and time again.

With that in mind, here are two very cheap stocks that I would consider buying in the coming days.

NCC Group

The rush into U.S. tech stocks means many local competitors still look extremely cheap. This is the case CCN Group (LSE:NCC), even after recent substantial share price gains.

City analysts estimate that profits will increase by 54% this financial year (through May 2025). The company therefore trades on a forward price-to-earnings growth (PEG) ratio of 0.4.

A quick reminder: any value below one suggests that a stock is undervalued.

NCC, which makes cybersecurity products, has suffered from tough economic conditions that have prompted tech companies to cut spending. However, sales rebounded by 6% at constant exchange rates in the second half of last year, following a 9.4% decline in the first half.

Could the company be at the start of a strong and lasting recovery? I think the chances are high, given our increasingly digitalized lifestyles and the growing threat from cybercriminals. Buying its shares at current low prices could be a masterstroke.

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Bank of Georgia

Investing in emerging markets can often involve great risks. This is certainly the case for Bank of Georgia Group (LSE:BGEO) today. Rising civil unrest and political turmoil in Georgia pose a risk to the earnings of cyclical companies like this one.

But as with any stock, I have to weigh the potential rewards of owning Bank of Georgia against its risks. And overall, I think the stock has considerable investment potential, driven by growing demand for banking products.

The most recent financial data showed adjusted pre-tax profit rising 22.5% between January and March. The combination of low product penetration in Georgia and a strong economy means it’s also possible that profits will continue to soar.

Additionally, I think the bank’s rock-bottom valuation largely reflects the current unrest in the country. The company trades on a forward price-to-earnings (P/E) ratio of 3.5 times, which in my opinion provides a wide margin for error.

With investors also offering a dividend yield of 7.1%, I think Bank of Georgia could be one of the best bargains on the FTSE 250.

The article 2 Very Cheap FTSE 250 Stocks to Consider Buying in July! appeared first on The Motley Fool UK.

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Royston Wild has no position in any of the stocks mentioned. The Motley Fool UK has no position in any of the stocks mentioned. The opinions expressed about companies mentioned in this article are those of the author and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. At The Motley Fool, we believe that considering a broad range of information makes us better investors.

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