I think some of the best-growing stocks in the market can be found on the FTSE 250. In this case, I have been combing through the index recently, looking for companies that can add their stocks to my portfolio and have attractive growth prospects.
Today I will buy the following three companies for my portfolio.
FTSE 250 builder
The first company on my list is a house builder Bellevue (London Stock Exchange: WHO).
The UK housing construction industry is currently benefiting from a strong tailwind, and Bellway is taking advantage of this growth. According to the intermediate results, The team set a record There were 5,656 accommodations in the first half of the year. Due to record production and higher selling prices, revenue during the period increased by 11.6% year-on-year.
I think low interest rates, easy credit and high demand for new properties will lead to continued growth of Bellway. This is why I want to buy this FTSE 250 company.
Some of the risks faced by companies include higher costs. These have already had an impact. The group’s gross profit margin in the first fiscal quarter fell from 23.1% to 20.8%. If this trend continues, profits may come under further pressure.
The other company I want to add to the FTSE 250 growth stock portfolio is Clarkson (London Stock Exchange (LSE: CKN)).
I believe that this leading global provider of integrated services and investment banking functions for the global shipping market should record increasing profits as the economy grows.
Indeed, due to rising global freight rates, strong demand and signs of declining supply, the company has already made a “Encouraging startTo this year. The management believes that the activity will continue to increase throughout the year and expects significant improvement in the second half of the year.
I will buy Clarkson as a growth company, but I also plan to keep the company’s weaknesses in mind. A sudden decline in economic activity may cause freight rates to plummet and may cause losses. Usually, industries such as shipping will first feel pain when the economy is down.
The booming 5G market
The pandemic has indeed accelerated the global demand for efficient communication technology, which may drive the increase in demand for 5G connections.One company that can benefit from it is Spirent Communications (LSE: SPT).
Spirent produces and develops for Telecommunications network. It is an expert in 5G equipment and has recently reported growing interest in its features.
In the company’s latest transaction update, management reports that the business “With the development of 5G technology and networks, we continue to win in 5G.In the first quarter, it signed 180 5G transactions with more than 80 customers.
Nevertheless, although Spirent seems to be searching around today, the competition in the technology field is incredibly incredible. Therefore, the company will need to stay at the forefront of 5G technology to maintain its market share. This is the most significant risk facing companies today. If it does not catch up with its competitors, it may lose customers quickly.
Even with this risk in mind, I still use Spirent for my FTSE 250 growth stock portfolio.
Rupert Hargreaves has no position in any of the shares mentioned. Motley Fool UK has no position in any of the aforementioned shares. The views expressed by the companies mentioned in this article are only those of the author, and therefore may differ from the formal recommendations we made in subscription services such as Share Advisor, Hidden Winners and Pro.At The Motley Fool, we believe that taking into account a variety of insights can make We are better investors.