If I had a spare £5,000 to invest right now, there are quite a few FTSE 100 shares I would happily buy. But I am also seeing some bargains in the FTSE 250 index of small- and medium-sized companies. If I wanted to invest £5,000 in FTSE 250 shares at the moment, I would split the money evenly five ways, as follows.
ITV
Broadcaster and production company ITV needs little introduction. It has been a familiar name in British households for decades.
The decline of terrestrial television could change that, with advertising revenues falling. But I think it is here for a while yet. The company’s growing digital footprint shows it is moving with the times.
Meanwhile, the studios and production business is a growth driver. With a price-to-earnings (P/E) ratio of 8 and dividend yield north of 6%, I find the valuation attractive.
Assura
Healthcare landlord Assura has fallen out of favour in the City. The FTSE 250 share has shed 24% of its value in the past year.
I do think rising interest rates pose a threat to profitability at the property firm. That could ultimately threaten the dividend.
But I also see the current price as good value for a company with high market demand, reliable tenants that pay their bills on time and a 6% dividend yield.
Howden Joinery
I almost bought back into Howden Joinery this week, but with limited funds decided not to. If I had a spare £5,000 to invest now though, it would definitely make my shopping list.
The company has a well-established branch network and effective marketing strategy focused on big-spending trade customers.
A housing market downturn could hurt revenues, but in the long term I expect strong demand for building products and think Howden will benefit. A P/E ratio of just 10 looks cheap to me for a business of this quality.
Computacenter
I would also be happy to invest in IT services provider Computacenter. Like Howden, I think its sales may suffer in an economically hard time.
But IT is key to running a business these days. It needs to be maintained and upgraded. Computacenter has a large user base and a well-trusted name in the industry. I expect it to do well for decades to come.
This FTSE 250 share has risen 84% over the past five years. But I think a 19% fall in the past 12 months offers me a potential buying opportunity.
Safestore
Like Assura, rising interest rates pose a risk to profits at self-storage specialist Safestore. But the company’s proven business model, strong market position and growing demand for self-storage all work in its favour.
The company’s first quarter saw revenues rise 9.4% year-on-year. Meanwhile, two directors dipped into their own pockets last month to buy Safestore shares.
If I had spare cash to invest today, I would do the same.
The post I’d spend £5,000 snapping up these 5 FTSE 250 shares appeared first on The Motley Fool UK.
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C Ruane has positions in ITV and Safestore Plc. The Motley Fool UK has recommended Howden Joinery Group Plc, ITV, and Safestore Plc. 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.