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.
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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.
