There are three very different FTSE 250 stocks that have grown exponentially in value since May 2025. But have investors missed the boat?
Let’s see.
| Stock | One-year share price change |
|---|---|
| Pan African Resources (LSE:PAF) | +206% |
| Sage (LSE:SAGA) | +293% |
| Ceres Power Holdings (LSE:CWR) | +1,064% |
Hot
Pan African Resources is a mid-tier gold producer with operations in South Africa and Australia. And like all in the sector, it’s benefitted hugely from the recent surge in the gold price.
However, although shareholders have done well, it’s a reminder that earnings in the sector can be volatile. Along with all sorts of random events posing a threat to production – the weather and industrial action, to name just two — it means investing in the sector can be risky.
But looking ahead, I think demand for gold will continue to rise. Central banks are buying vast quantities as they seek to hedge against inflation and mitigate the risk of sovereign debt default. Encouragingly, the group’s production costs are lower than its peer group average.
For those attracted to the sector, there are lots of miners to choose from. Indeed, I’m already exposed through a small stake in Endeavour Mining. However, one gold miner’s enough for me. Others could consider Pan African Resources.
Hotter
Saga, the over-50s specialist, recently disposed of its under-performing insurance underwriting arm – it continues to act as a broker – and now focuses on its ocean and river cruises business.
In its favour, its target demographic has above-average disposable incomes. And those in their ‘golden years’ tend to show more brand loyalty and be less price conscious.
However, Saga’s balance sheet shows a relatively high level of debt when compared to earnings (3.7 times). And its travel business could be vulnerable to a general macroeconomic slowdown.
But the group’s clearly going in the right direction. It increased its underlying earnings per share by 77% during its January 2026 financial year. And despite its stellar run, the stock trades on a modest 13.8 times historic earnings. On this basis, I think it could be one to consider.
Hottest
Since May 2025, Ceres Power Holdings stands head and shoulders above all others on the FTSE 250.
When I last wrote about the fuel cell provider on 4 April, I said: “Despite the obvious risks surrounding a company that’s seeking to develop relatively new technological solutions, I think the stock’s one to consider.”
At the time, its share price was 320p. Just under eight weeks later, it’s comfortably over 800p. Even though I remain a fan of the group, this is a little rich for me.
Yes, I like its high margin and the fact that existing grid constraints could lead to increased demand from data centres. I also appreciate the way in which the business de-risks its operations by licensing its technology to others.
However, a market-cap of £1.6bn feels lofty, especially for a company that reported a £48m loss in its most recent financial year.
Turning hydrogen into heat and power sounds like a good idea to me. Therefore, I shall revisit the investment case should the group’s share price take a bit of a dip.
Final thought
The FTSE 250 might not be the first choice of investors on the hunt for exciting growth stocks but these three suggest it might be worth taking a closer look at the index.
Should you invest £5,000 in Ceres Power Plc right now?
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James Beard owns shares in Endeavour Mining plc.
