The FTSE 250 continues to fly as investor urge for food for UK-focused shares picks up. At round 21,356 factors, the London inventory market index is now up 8% for the reason that begin of 2024.

After all, there’s additionally been some massive fallers in latest months. This consists of some high-quality corporations that — in my view — buyers have been too hasty in promoting off.

Such declines current a wonderful funding alternative for long-term buyers like me nevertheless. By shopping for expertly-run companies at right this moment’s discounted costs, I stand to make gorgeous returns when (as I anticipate) they finally bounce again.

Making use of this technique, right here’s an amazing FTSE 250 share I anticipate to get better strongly over time and see it as worthy of additional research.

Up, however nonetheless down

Shares in SSP Group (LSE:SSPG) have taken off in July following a glowing set of buying and selling numbers. Nonetheless, over a six-month time horizon the enterprise remains to be nursing heavy share price losses.

At 176.3p per share, it’s fallen a whopping 21% in complete over the interval.

SSP operates meals and beverage shops in prepare stations, airports and different journey areas. Its main manufacturers embrace baguette vendor Higher Crust and Ritazza espresso retailers. The agency additionally operates franchise shops for blue-chip manufacturers like Starbucks, McDonalds and Greggs.

Traders closely bought its shares following Could’s half-year buying and selling replace. Again then, it stated that pre-tax earnings had dropped 19% yr on yr between October and March. This was regardless of a 15% surge in revenues.

SSP’s backside line was impacted by industrial motion on the French and German railways, together with excessive ranges of renewals in Europe and their associated prices. Adversarial forex actions didn’t do the agency any favours both.

Issues unwinding

However these pressures are more likely to show non permanent, some analysts consider. Certainly, final month’s reassuring replace illustrates that SSP could also be previous the worst and that circumstances are bettering. Then the corporate affirmed full-year underlying working revenue goal of between £210m and £235m.

SPP stated that gross sales rose 15% in the course of the April to June quarter, up from 12.3% within the prior three-month interval. It commented that “led by an rising demand for leisure journey, we’ve seen a robust gross sales efficiency throughout all areas“.

A contemporary financial downturn may scupper the corporate’s progress in latest months. So may a worsening in currency-related results. However as issues stand, the enterprise appears to be like in good condition to capitalise on the height summer time interval and to carry out strongly thereafter.

A high worth inventory

Metropolis analysts agree with my bullish opinion. For the subsequent two monetary years, firm earnings are tipped to rise 62% and 32% respectively.

Such forecasts additionally depart SSP shares trying filth low-cost on paper. A price-to-earnings progress (PEG) ratio of 0.3 for this yr, and 0.4 for the next 12 months, fall under the extensively regarded discount benchmark of 1.

Analysts have connected a median 12-month goal price of 280.6p per share to SSP. This represents a beautiful 60%-plus premium from present ranges.

I feel the enterprise may take pleasure in fast share price progress over the long run too, because it expands internationally to capitalise on the regular rise in traveller numbers.