FTSE 250 stocks have been on a roll over the last six months, rising by over 10% since October 2022. Sadly, this upward momentum has seemingly disappeared part-way through the first quarter of 2023.
The index is down by just over 3% since the start of the year. But the same can’t be said for all its constituents. So, let’s look at the biggest winners and losers over the last three months.
The stragglers
While the FTSE 250 may be relatively flat overall, quite a few companies across multiple industries aren’t as lucky.
FTSE 250 Stock
Industry
2023 Q1 Performance
12-Month Performance
888 Holdings
Consumer Discretionary
-36.8%
-70.8%
Direct Line Insurance
Insurance
-34.6%
-48.7%
Ferrexpo
Mining
-34.3%
-32.9%
Spirent Communications
Telecommunications
-32.8%
-26.8%
Hunting
Industrials
-29.8%
-24.6%
The worst-performing stock in the FTSE 250 so far this year is 888 Holdings. The gaming company has steadily lost almost 90% of its market cap since late 2021 on the back of a major fine from the UK Gambling Commission. Needless to say, news of money laundering isn’t exactly good for business. And while the firm is in the process of getting its house in order under new leadership, the jury is still out on whether its reputation can recover.
As for Direct Line, the insurance business is suffering inflation costs on car repairs for its automotive insurance business. So much so that profits dropped back into the red from a gain of £446m in 2021 to a loss of £45.1m in 2022. Pairing that with dividends being suspended, shareholders quickly ran to the exits in January.
Like many mining stocks, Ferrexpo is suffering from the wind down in iron ore prices. But a more concerning problem is that most of its operations lie within Ukraine and the war continues to rage. With its performance unlikely to recover until after the war ends, its share price remains depressed.
Meanwhile, macroeconomic conditions are driving down demand for Spirent Communications testing and assurance services, causing sales to stagnate. And while Hunting posted stellar full-year results for 2022, the recent collapse of natural gas prices has many investors concerned that this momentum won’t continue into 2023.
Winning FTSE 250 stocks
Of course, not all British businesses were in the gutter this quarter.
FTSE 250 Stock
Industry
2023 Q1 Performance
12-Month Performance
J D Wetherspoon
Restaurants
+49.8%
-16.5%
John Wood Group
Industrials
+49.6%
+21.3%
ASOS
Consumer Discretionary
+44.7%
-53.3%
Aston Martin Lagonda
Automotive
+43.2%
-38.3%
easyJet
Travel & Leisure
+37.5%
-12.7%
Many people are finding refuge in the pub from the cost-of-living crisis helping J D Weatherspoon bounce back from its pandemic woes. The engineering company, John Wood, has received several cash offers sending shares surging. And the ASOS fashion brand is making headway in its turnaround plan after its pandemic tailwinds evolved into headwinds.
What about Aston Martin? The luxury car maker seems to be successfully passing on rising costs to its richest clientele while simultaneously boosting volume. The firm’s debt continues to pose problems. But the firm is making a valiant effort in its comeback that investors seemingly like.
And lastly, for easyJet, the continued recovery within the travel industry is boding well for its bottom line. The low-cost carrier is still in the red by £133m. But that’s an £80m improvement compared to a year ago.
The post FTSE 250 stocks: winners and losers in Q1 2023 appeared first on The Motley Fool UK.
We think earning passive income has never been easier
Do you like the idea of dividend income?
The prospect of investing in a company just once, then sitting back and watching as it potentially pays a dividend out over and over?
If you’re excited by the thought of regular passive income payments, as well as the potential for significant growth on your initial investment…
Then we think you’ll want to see this report inside Motley Fool Share Advisor — ‘5 Essential Stocks For Passive Income Seekers’.
What’s more, today we’re giving away one of these stock picks, absolutely free!
Get your free passive income stock pick
setButtonColorDefaults(“#5FA85D”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43A24A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#FFFFFF”, ‘color’, ‘#FFFFFF’);
})()
More reading
Up 76% in 2023, is Tesla stock now fairly valued?
FTSE 100 stocks: winners and losers in Q1 2023
I’d start generating lifelong extra income by putting aside £50 a week
The Legal & General share price screams value
The FTSE has fallen but this growth stock is surging!
Zaven Boyrazian has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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.