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FTSE 250 Growth Stocks I’d Buy for Multi-Bagger Returns

by xyonent
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purchase FTSE 250 Stock prices can make us nervous at times. But the mid-cap index FTSE 100 In long-term returns.

The long-term average return from a small index is about 11% per year, with a forecast closer to 7%.

FTSE 250 stocks have fallen back in recent years but are starting to rise again.

FTSE 250 growth

There are some great dividend payouts coming from the FTSE 250, but today we’re looking at pure growth stocks.

Biotechnology research company Pure Tech Health (LSE: PRTC).And over the last five years the share price has been… how pale are those knuckles?

Explosive growth?

Let’s look at the obvious downside: PureTech does not generate recurring profits, and is not expected to do so for the next few years.

But the company just completed a $100 million share buyback. Isn’t it a bit odd for an unprofitable company to give cash back? Yes, you’re right.

But the $14 billion sale of Karuna Therapeutics, which PureTech founded, Bristol-Myers Squibb It made a big difference to my pile of cash.

And at the end of last year, March 31, the company reported cash, cash equivalents and short-term investments of $573 million. The board estimates it has enough capital to continue operating for the next several years.

Clinical Research

PureTech’s research has great potential for the future: the company specializes in medicines related to the brain, gut and immune system, and has a number of drug candidates up for approval in the EU and US regulatory systems.

As well as its own research, PureTech is also involved in many other areas through its ‘Founded Entities’ approach, as seen in the success of Karuna.

The firm invests in a range of companies operating in areas such as neuropsychiatry, oncology and immunology.

The way forward

It all depends on the expectations for PureTech’s research pipeline and that of its founding companies. But to me, the approach here looks more appealing than most of the approaches in the industry.

Speaking about the company’s internal research goals, CEO Bharat Chawriila spoke about the options open to achieving them.

he”Developing them through established organisations and partnerships” is one way of doing it. And when companies start new companies like this, they get way too many applicants these days.

Oh, and the CEO also said,We are proud of our track record of clinical success, which is six times higher than the industry average.” “.

Should I buy it?

Buying PureTech Health shares now would be highly speculative: we don’t have the usual measures to value the stock — there’s no useful price-to-earnings (P/E) ratio, and no dividend yield.

However, analysts expect PureTech’s sales to grow strongly over the next few years.

It is difficult to compare this with other stocks on my wish list. But if I were to buy, I would buy only small amounts as there is a chance of losing money. But if things turn out well, I might expect a multi-bagger here.

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