However, the most recent figures from the Office of National Statistics has revealed an encouraging trend. The average number of jobs openings in the UK alone has shot up by 68% over the past six months, increasing from 304,000 in April 2020 to 512,000 today.

Seeing employment levels begin to return is undoubtedly good news for the economy in general. But it is excellent news for one FTSE 250 stock in particular in my opinion.

A global leader in talent recruitment

PageGroup (LSE:PAGE) is an international recruitment specialist. The business is focused on providing qualified individuals to fulfil specific jobs across a wide range of industries. After 40 years of being in business, the stock’s brand has become well known within the job recruitment space, with many customers increasing their reliance on its services each year.

Over the years, the company has developed a deep pool of talent to provide for its customers. Many recruitment agencies can provide general staffing quickly. But PageGroup has expanded its reach to ensure that it can offer talented individuals to fulfil roles within a business at any level. From low-level clerical workers all the way to top-tier executives.

Risks to consider

A critical part of PageGroup’s success is its strong reputation for finding the right people for the right job. This has made the shares in this UK business a popular choice amongst talent acquisition teams at companies. But it also has created a certain level of expectation that places additional pressure on the business.

Suppose the firm cannot find or provide qualified individuals to fulfil new roles. Or even worse, it gives an individual that is not capable of meeting customer expectations. In that case, its customers will turn to competitors to acquire the talent they need. This ultimately enables PageGroup’s rivals to begin developing relationships with its own customers, leading to potential revenue loss in the future. This is a risk that will always threaten the stock, I feel.

Another risk to consider is the stock’s international operations. The majority of the firm’s operating profit is generated outside the UK. Consequently, it is exposed to foreign exchange rate risks that can substantially impact the overall performance of the business.

Should I buy the FTSE 250 stock?

In my opinion, as the UK job market begins to return, PageGroup looks like a fantastic way to profit from the rising trends. Especially since the boost in business will likely result in the return of its historical 3% dividend yield.

But the talent recruitment market is highly competitive. While its reputation grants it some competitive advantages, they don’t seem substantial enough to me. Therefore I won’t be adding these UK shares into my portfolio. But I will definitely be keeping an eye on it.

The post UK shares: 1 FTSE 250 stock to watch in 2021 appeared first on The Twelfth Magpie.

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Zaven Boyrazian does not own shares in PageGroup. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

However, looking ahead, things could be a whole lot different for the pharmaceutical company, with the next few years set to see it transition from a company that has a bottom line under severe pressure towards being a business that offers impressive levels of profit growth.

In fact, AstraZeneca has been guiding the market towards positive earnings growth from 2017 onwards and, in the meantime, it appears as though further acquisitions will be made as it seeks to quicken its march towards growth status. And, despite this, AstraZeneca continues to offer excellent value for money – as evidenced by a price to earnings (P/E) ratio that stands at just 15.7 which, for a global pharmaceutical stock that itself could become a takeover target, seems rather low.

Furthermore, AstraZeneca continues to offer reduced volatility and has a relatively low correlation with the performance of the wider economy. So, while the Greek debt crisis may be drawing to a close, further problems in the Eurozone may hit the company’s share price less severely than its index peers. Evidence of this can be seen via a beta of just 0.9.

Clearly, a lack of volatility is not on offer at oil services company, Petrofac (LSE: PFC). Its shares have risen by 22% since the turn of the year, but are still down 27% in the last twelve months as investor sentiment for oil-focused stocks has declined. However, Petrofac continues to offer a robust balance sheet, sound strategy and, with its bottom line forecast to grow by 83% next year, investor sentiment could continue to improve significantly over the medium to long term.

That’s especially the case since Petrofac has a forward P/E ratio of just 8.7, which makes it one of the cheapest and best value stocks in the FTSE 350. Certainly, more volatility is almost certain to lie ahead, but significant capital growth also appears to be on the cards, too.

Meanwhile, today’s update from recruitment company Michael Page (LSE: MPI) was not particularly well received by the market. Despite posting a rise in revenue of 6.6% in the first half of the year, shares in the company are currently down by 2% as a result of the impact of a weak Euro on the company’s figures. In fact, were it not for the depreciation of the single-currency, Michael Page would have reported a 10.8% rise in sales, with an improving global economy helping to stimulate its top-line performance.

Looking ahead, Michael Page is forecast to increase its bottom line by 14% in the current year and by a further 26% next year. This, when combined with a P/E ratio of 25.9, equates to a PEG ratio of around 1, which indicates that its shares could continue to rise despite them being 32% higher than they were at the turn of the year.

The post Is Now The Perfect Time To Buy AstraZeneca plc, Petrofac Limited And Michael Page International plc? appeared first on The Twelfth Magpie.

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Peter Stephens owns shares of AstraZeneca and Petrofac. The Motley Fool UK owns shares of Petrofac. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.