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2 FTSE 250 bargains I’d buy for my ISA in February!

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I’m searching for the best FTSE 250 stocks to buy this month. I think these two could be among the best value shares out there.

Spire Healthcare

As the crisis engulfing the NHS increases, I’m considering buying more shares in healthcare provider Spire Healthcare (LSE:SPI).

Rising stress on the free health service means people are choosing to pay for treatment in increasing numbers. A survey last year showed a whopping 10% of Britons have opted for private treatment, with most citing long NHS waiting lists.

As one of the country’s major private treatment providers, Spire has witnessed a big jump in patient numbers. Latest financials in the six months to June showed revenues rose 7.1% year on year. This was driven by sales from self-pay patients leaping by more than a third.

Studies on the NHS suggest that demand for its services will continue to grow too. Patient waiting lists — which hit record highs of 7.2m in October — may continue to rise until spring 2024, the government has suggested. 

This is why City analysts expect Spire’s earnings to rocket 140% year on year in 2023. They are tipping a 45% bottom line improvement next year too.

As an investor, I’m concerned about how the business will tackle a growing shortage of healthcare staff. The World Health Organisation predicts a global shortage of above 14m by 2030.

But on balance, I think the rewards of owning Spire shares outweigh the risks. And especially at current prices.

Today, the FTSE 250 share trades on a price-to-earnings growth (PEG) ratio of 0.2. As a rule of thumb, a ratio below 1 indicates a stock is undervalued.


ITV (LSE:ITV) is another cheap stock on my radar this month. It trades on a forward price-to-earnings (P/E) ratio of 9 times, well below the FTSE 250 average of 12 times.

The media giant also carries a 6.1% dividend yield, more than double the 3% index average.

Advertising revenues are the lifeblood of commercial broadcasters. This, in part, explains the low valuation that ITV currently commands. As the UK economy splutters, companies are likely to be more careful with marketing spend.

Yet free-to-air specialists like this might also enjoy a boost over the short-to-medium term. I’m talking about improved viewing figures as people stop paying for streaming services such as Netflix. Kantar Worldpanel says that 12% of Britons plan to cancel one subscription or more between January and March.

I’d buy ITV shares because of its own excellent streaming proposition. The broadcaster has a strong track record here and the launch of its new ITVX service in December is highly encouraging. Streaming hours at the broadcaster jumped 55% year on year in its first month of operation.

I’m also impressed by the continued progress at its ITV Studios production division. Revenues continue to grow ahead of the market and leapt 16% in the nine months to September.

The post 2 FTSE 250 bargains I’d buy for my ISA in February! appeared first on The Motley Fool UK.

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Royston Wild has positions in Spire Healthcare Group Plc. The Motley Fool UK has recommended ITV. 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.