Two Top FTSE 250 Shares to Watch in 2022

Roberto Rivero

The UK’s FTSE 250 index is comprised of 250 mid-cap companies listed on the London Stock Exchange (LSE). The index is full of a range of diverse stocks which provide investors with both growth and income opportunities.  

In this article, we will examine two of the top FTSE 250 shares that investors should consider adding to their portfolios in 2022. 

What Is the FTSE 250? 

The FTSE 250 is the UK’s second tier stock index, after the FTSE 100. Whilst the FTSE 100 is comprised of the 100 largest companies by market capitalisation listed on the LSE, the FTSE 250 is made up of the next 250 largest companies. 

As such, many of the companies are much smaller than the FTSE 100 constituents, which can offer investors better opportunities for growth.  

Although the FTSE 100 is usually deemed the UK’s benchmark index, many of the companies within it are international corporations which draw the majority of their revenue from overseas. The FTSE 250, on the other hand, is far more domestically focused and, for that reason, is viewed by many as a better gauge for the health of the UK economy. 

If you are interested in learning more about the differences and similarities between the FTSE 100 and the FTSE 250, you can read our other article:  

The FTSE 100 vs FTSE 250 

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Top FTSE 250 Shares to Watch in 2022 

Now we know have a better idea of what the FTSE 250 stock index is, what are the top FTSE 250 shares to watch in 2022? In the next sections, we will be looking closely at the following two companies: 

  • Pets at Home 
  • Tritax Big Box 

Pets at Home 

Perhaps not what you were expecting when you clicked on this article, but Pets at Home is the first of our top FTSE 250 shares to watch and one which could provide long-term value to investors. 

During the Covid-19 pandemic, a remarkable 3.2 million UK households acquired a pet, taking the total number of pet-owning households to 17 million who own a combined 34 million animals between them. That’s a lot of pets.  

Anyone who has ever owned or cared for a pet understands that the bond between pet and owner is often not dissimilar the bond between family members and friends and, sometimes, even stronger. In other words, when it comes to caring for a pet, an owner’s demand for the necessary products is fairly inelastic and, with the recent boon in pet ownership, the level of this demand has risen considerably. 

Pets at Home is somewhat of a rarity in the UK, being a pet store chain which operates nationwide, having taken over other businesses along the way. Across the country the company operates 452 stores and an additional 316 grooming salons. Furthermore, the company also operates 441 veterinary practices on a joint venture basis.  

This nationwide reach positions the company favourably to meet rising demand in pet-related products and services both now and in the future. 

One of the interesting features of the business is their subscription services for various treatments, of which they currently have over one million customers. This customer base is currently only responsible for a small percentage of total revenue, but the customer base is growing and along with it the revenue which it is generating. 

Depicted: Admirals MetaTrader 5Pets at Home Weekly Chart. Date Range: 12 July 2015 – 12 January 2022. Date Captured: 12 January 2022. Past performance is not a reliable indicator of future results. 

 

Tritax Big Box REIT 

Unless you have been living under a rock for the last few months, you will have no doubt heard that inflation is currently on the rise across the world, and the UK is no exception.  

Despite the Bank of England having already taken measures to control rising inflation before it gets out of control, it is fairly safe to assume that the topic of inflation will be a significant theme in 2022. 

Investors will need to consider rising inflation when choosing investments this year, which is what we’re doing with the next of our top FTSE 250 shares, Real Estate Investment Trust (REIT) Tritax Big Box.  

The property sector tends to perform well during periods of high inflation, due to the fact that property prices rise and landlords can increase their rent.  

Tritax Big Box owns a large portfolio of warehouses which it rents out to major businesses, providing the business with a reliable stream of income. Its top five customers are Amazon, Morrisons, Tesco, Howdens and Co-op, which account for around 37% of its total contracted annual rent.  

Focusing on this investment from an inflation perspective, according to its H1 2021 results, 49% of its portfolio has rent reviews which are linked to rises in either consumer or retail prices. 

One of the appealing characteristics of this top FTSE 250 stock is that much of its customer base (63%) operates in resilient sectors, such as e-commerce and food retail, which, in turn, provides Tritax with a certain level of resilience to market uncertainty. Furthermore, being a REIT, the stock is obliged to pay a significant percentage of its profits to shareholders in the form of a dividend. Currently, its dividend yield sits at around 2.7%. 

Depicted: Admirals MetaTrader 5 – Tritax Big Box REIT Weekly Chart. Date Range: 12 July 2015 – 12 January 2022. Date Captured: 12 January 2022. Past performance is not a reliable indicator of future results. 

 

Top Performing FTSE 250 Stocks in 2021

So now we have some ideas of which FTSE 250 stocks to watch in 2022, what happened last year? Here are the five top performing FTSE 250 stocks of 2021: 

Top Performing FTSE 250 Stocks in 2021
Company Percentage Gain in 2021
Watches of Switzerland (WOSG) 145%
Indivior (INDV) 136%
Future (FUTR) 120%
Investec (INVP) 115%
Volution Group (FAN) 98%

Source: London Stock Exchange. Top Performing FTSE 250 Stocks in 2021. Date Captured: 17 January 2022. 

How to Invest in the Top FTSE 250 Shares with Admirals 

If you are interested in buying either of the top FTSE 250 shares we have looked at in this article, you will be pleased to know that you can do so with an Invest.MT5 account from Admirals! 

In order to start investing, follow these steps: 

  1. Open an Invest.MT5 account with Admirals 
  2. Download the MetaTrader 5 trading platform 
  3. Open MetaTrader 5, press Control + U and search for the top FTSE 250 shares you wish to invest in, once located click ‘Show Symbol’ 
Depicted: Admirals MetaTrader 5 – Symbols 

 

  1. Locate the stock in ‘Market Watch’ on the left-hand side of the screen, right click and press ‘Chart Window’ to open a price chart 
  2. Press ‘New Order’ at the top of the screen, select the number of shares you wish to purchase and click ‘Buy’ to send the order to the market 

Depicted: Admirals MetaTrader 5 – Tritax Big Box REIT Daily Chart – New Order. Date Range: 9 September 2020 – 12 January 2022. Date Captured: 12 January 2022. Past performance is not a reliable indicator of future results. 

 

Investing with Admirals 

With an Invest.MT5 account from Admirals, you can buy shares in Pets at Home, Tritax Big Box and over 4,300 other companies from 15 of the largest stock exchanges in the world! Click on the banner below in order to open an account today: 

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INFORMATION ABOUT ANALYTICAL MATERIALS:  

The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admirals investment firms operating under the Admirals trademark (hereinafter “Admirals”) Before making any investment decisions please pay close attention to the following:  

  1. This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
  2. Any investment decision is made by each client alone whereas Admirals shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content.
  3. With view to protecting the interests of our clients and the objectivity of the Analysis, Admirals has established relevant internal procedures for prevention and management of conflicts of interest.
  4. The Analysis is prepared by an independent analyst Roberto Rivero, Freelance Contributor (hereinafter "Author") based on personal estimations.
  5. Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admirals does not guarantee the accuracy or completeness of any information contained within the Analysis.
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