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                                <title>1 FTSE 250 share to buy now as an inflation stock!</title>
                <link>https://www.twelfthmagpie.com/2022/08/21/1-ftse-250-share-to-buy-now-as-an-inflation-stock/</link>
                                <pubDate>Sun, 21 Aug 2022 07:00:27 +0000</pubDate>
                <dc:creator><![CDATA[John Choong]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[FTSE 250]]></category>
		<category><![CDATA[Inflation]]></category>
		<category><![CDATA[Luxury goods]]></category>
		<category><![CDATA[Value stocks]]></category>
		<category><![CDATA[Watches of Switerland]]></category>
		<category><![CDATA[Watches of Switzerland Group]]></category>
		<category><![CDATA[Watches of Switzerland Share Price]]></category>
		<category><![CDATA[Watches of Switzerland Shares]]></category>
		<category><![CDATA[Watches of Switzerland Stock]]></category>
		<category><![CDATA[Watches of Switzerland Stock Price]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=1158403</guid>
                                    <description><![CDATA[<p>July's CPI report came in hot with a 10.1% increase. So, here's one FTSE 250 stock I'm considering buying to hedge against inflation.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2022/08/21/1-ftse-250-share-to-buy-now-as-an-inflation-stock/">1 FTSE 250 share to buy now as an inflation stock!</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
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<p class="wp-block-paragraph">Inflation continues to run rampant and hit consumers’ wallets hard. As such, I’ve been looking for stocks that have the potential to outperform the inflation rate, and <strong>Watches of Switzerland</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-wosg/">LSE: WOSG</a>) has caught my eye.</p>



<div class="tmf-chart-singleseries" data-title="Watches Of Switzerland Group Plc Price" data-ticker="LSE:WOSG" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>




<h2 class="wp-block-heading" id="h-luxury-stocks-clock-in">Luxury stocks clock in</h2>



<p class="wp-block-paragraph">There are several reasons to invest in luxury stocks during times of high inflation. The first is that customers purchasing luxury goods are usually least affected by inflation, given their financial position. The second is that retailers are able to pass on higher costs without impacting demand.</p>



<p class="wp-block-paragraph">I imagine this to be the case for Watches of Switzerland. The company sells luxury watches and jewellery, while also providing servicing, repairs, and insurance services. It operates over 100 showrooms in the UK and 40 showrooms in the US. The <strong>FTSE 250</strong> firm also operates through several transactional websites that include Goldsmiths, Mappin &amp; Webb, Watches of Switzerland, Mayors Jewelers, and Betteridge brands.</p>



<h2 class="wp-block-heading" id="h-dazzling-numbers">Dazzling numbers</h2>



<p class="wp-block-paragraph">Keeping that in mind, the luxury retailer posted a rather robust set of numbers for its first quarter. Despite sales growth showing a slowdown, growth was still rather impressive for what I’d classify as a value stock. Shore Capital analyst Eleonora Dani echoed this sentiment as she described it as a “<em>solid trading update</em>“.</p>



<figure class="wp-block-table"><table><thead><tr><th class="has-text-align-center" data-align="center">Metrics</th><th class="has-text-align-center" data-align="center"><strong>Q1 2023</strong></th><th class="has-text-align-center" data-align="center"><strong>Q1 2022</strong></th><th class="has-text-align-center" data-align="center"><strong>Change</strong></th></tr></thead><tbody><tr><td class="has-text-align-center" data-align="center"><strong>Total Revenue</strong></td><td class="has-text-align-center" data-align="center">Â£391m</td><td class="has-text-align-center" data-align="center">Â£297m</td><td class="has-text-align-center" data-align="center">31%</td></tr><tr><td class="has-text-align-center" data-align="center"><strong>UK Revenue</strong></td><td class="has-text-align-center" data-align="center">Â£239m</td><td class="has-text-align-center" data-align="center">Â£222m</td><td class="has-text-align-center" data-align="center">8%</td></tr><tr><td class="has-text-align-center" data-align="center"><strong>US Revenue</strong></td><td class="has-text-align-center" data-align="center">Â£152m</td><td class="has-text-align-center" data-align="center">Â£76m</td><td class="has-text-align-center" data-align="center">100%</td></tr><tr><td class="has-text-align-center" data-align="center"><strong>Watches</strong></td><td class="has-text-align-center" data-align="center">Â£342m</td><td class="has-text-align-center" data-align="center">Â£259m</td><td class="has-text-align-center" data-align="center">32%</td></tr><tr><td class="has-text-align-center" data-align="center"><strong>Jewellery</strong></td><td class="has-text-align-center" data-align="center">Â£27m</td><td class="has-text-align-center" data-align="center">Â£20m</td><td class="has-text-align-center" data-align="center">36%</td></tr></tbody></table><figcaption><em><sup>Source: Watches of Switzerland Q1 2023 Trading Update</sup></em></figcaption></figure>



<p class="wp-block-paragraph">As a prospective investor, it’s nice to see broad-based growth across the company’s line of products. This was helped by continued improvement in its range of watches, but more notably, its jewellery. CEO Brian Diffy expects the strong momentum from Q1 to carry into Q2, and the rest of the year. Management even guided for the FTSE 250 company to finish the year strongly as it reiterated its outlook for its financial year.</p>



<figure class="wp-block-table"><table><thead><tr><th class="has-text-align-center" data-align="center"><strong>Metrics</strong></th><th class="has-text-align-center" data-align="center"><strong>FY23 Outlook</strong></th><th class="has-text-align-center" data-align="center"><strong>Change</strong></th></tr></thead><tbody><tr><td class="has-text-align-center" data-align="center"><strong>Revenue</strong></td><td class="has-text-align-center" data-align="center">Â£1.45bn to Â£1.50bn</td><td class="has-text-align-center" data-align="center">17% to 21%</td></tr><tr><td class="has-text-align-center" data-align="center"><strong>Adjusted EBITDA</strong></td><td class="has-text-align-center" data-align="center">Flat to +0.5%.</td><td class="has-text-align-center" data-align="center">0% to 0.5%</td></tr><tr><td class="has-text-align-center" data-align="center"><strong>Capital Expenditure</strong></td><td class="has-text-align-center" data-align="center">Â£70m to Â£80m</td><td class="has-text-align-center" data-align="center">71% to 95%</td></tr><tr><td class="has-text-align-center" data-align="center"><strong>Net Cash</strong></td><td class="has-text-align-center" data-align="center">Â£35m to Â£45m</td><td class="has-text-align-center" data-align="center">-67% to -76%</td></tr></tbody></table><figcaption><em><sup>Source: Watches of Switzerland Q1 2023 Trading Update</sup></em></figcaption></figure>



<p class="wp-block-paragraph">Additionally, Diffy stated that the company’s products continue to show strength in demand, with client interest continuing to expand. Consequently, the trader will be focusing on attracting even more new clients and growing its market share in the UK and US. As travel across the Atlantic returns to pre-pandemic levels, this should serve as a tailwind, as all of its airport showrooms have now reopened.</p>



<h2 class="wp-block-heading" id="h-watch-list">Watch list</h2>



<p class="wp-block-paragraph">Although I’m no watch expert, the overall consensus seems to show that demand continues to strongly outstrip supply for luxury watches. And based on the latest results, the Watches of Switzerland management team has been showing its prowess by executing excellent strategic decisions while adapting to the tougher macroeconomic conditions.</p>



<figure class="wp-block-image size-full"><img fetchpriority="high" decoding="async" width="2133" height="1599" src="https://www.twelfthmagpie.com/wp-content/uploads/2022/08/UK-Consumer-Price-Index.png" alt="FTSE 250: Consumer Price Index (July 2022)" class="wp-image-1157875"><figcaption><em><sup>Source: ONS</sup></em></figcaption></figure>



<p class="wp-block-paragraph">With a rather steady balance sheet, boasting a <a href="https://www.twelfthmagpie.com/investing-basics/understanding-company-accounts/the-balance-sheet/" target="_blank" rel="noreferrer noopener">debt-to-equity ratio</a> of 33%, I think Watches of Switzerland is well equipped to continue its growth while remaining robust in the event of a recession. Therefore, I’m relatively confident that the firm’s share price can continue to perform. After all, it’s up 15% from its year-to-date low. Nonetheless, I’m slightly wary of the latest <a href="https://www.ons.gov.uk/businessindustryandtrade/retailindustry/bulletins/retailsales/july2022" target="_blank" rel="noreferrer noopener">UK retail sales data</a>, which showed non-food store sales declining 0.3% on a month-on-month basis, albeit still above 2019 levels.</p>



<p class="wp-block-paragraph">Even so, this may not be truly indicative of the FTSE 250 company’s fortunes, given that it operates in a very niche market. So, with an average price target of Â£13.37, I’ll definitely be adding Watches of Switzerland to my watchlist for now and will be looking to purchase shares in the near future.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2022/08/21/1-ftse-250-share-to-buy-now-as-an-inflation-stock/">1 FTSE 250 share to buy now as an inflation stock!</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
<p><strong>More reading</strong></p><ul><li> <a href="https://www.twelfthmagpie.com/2026/06/23/up-50-this-year-this-ftse-250-stock-is-smoking-the-index/">Up 50% this year, this FTSE 250 stock’s smoking the index</a></li></ul><p><em>John Choong has no position in any of the shares mentioned. 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 <a href="https://www.twelfthmagpie.com/help/disclaimer/what-does-it-mean-to-be-motley/">us better investors.</a></em></p>
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                                <title>3 FTSE 250 stocks I wish I&#8217;d bought in 2021</title>
                <link>https://www.twelfthmagpie.com/2021/12/27/3-ftse-250-stock-i-wish-id-bought-in-2021/</link>
                                <pubDate>Mon, 27 Dec 2021 11:31:05 +0000</pubDate>
                <dc:creator><![CDATA[Paul Summers]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[FTSE 100]]></category>
		<category><![CDATA[FTSE 250]]></category>
		<category><![CDATA[Future]]></category>
		<category><![CDATA[Indivior]]></category>
		<category><![CDATA[Watches of Switerland]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=260868</guid>
                                    <description><![CDATA[<p>The FTSE 250 (INDEXFTSE:MCX) may have climbed a very respectable 13% in 2021 so far, but these stocks have put that performance to shame.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2021/12/27/3-ftse-250-stock-i-wish-id-bought-in-2021/">3 FTSE 250 stocks I wish I&#8217;d bought in 2021</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[<p>Earlier today, I looked at <a href="https://www.twelfthmagpie.com/2021/12/27/3-ftse-100-stocks-i-wish-id-bought-in-2021/">3 stocks from the FTSE 100</a> that have done exceedingly well in 2021. In this article, I&#8217;m turning my attention to the more domestically-focused second tier of the UK market &#8212; the <strong>FTSE 250</strong>. Here are another group of shares that make me wish I could turn back the clock. </p>
<h2>Future</h2>
<p>One company that&#8217;s knocked the ball out of the park has been media group <strong>Future</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-futr/">LSE: FUTR</a>). Its shares have leapt 105% in the year to date as the company&#8217;s strategy of snapping up publishing assets continues to pay off and profits have soared. That&#8217;s a superb return compared to the 13% achieved by the FTSE 250 index as a whole.</p>
<p>At £4.5bn, Future is now knocking loudly on the door of the FTSE 100. Whether it manages to gain entry in 2022 is open to debate though. Having grown strongly during the pandemic, I wonder whether performance will moderate as we emerge on the other side. Some profit-taking looks inevitable too. </p>
<p>However, I&#8217;m inclined to be optimistic. Margins are steadily improving and free cash flow is strong. Perhaps most importantly, the company announced in November that FY22 adjusted results would likely be &#8220;<em>materially above current expectations</em>&#8220;.</p>
<p>So, based on a valuation of 24 times earnings, I wouldn&#8217;t be against adding Future to my own portfolio.</p>
<h2>Indivior</h2>
<p>Another second-tier winner in 2021 is pharmaceuticals business <strong>Indivior</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-indv/">LSE: INDV</a>). Its stock has delivered a near-150% gain &#8212; thanks to the company repeatedly raising its guidance on earnings. The supplier of medicines to treat drug abuse and mental illness has also been buying back its stock, further supporting the ascent of its share price. </p>
<p>Looking ahead, analysts are expecting Indivior to grow earnings per share by 45% in 2022. This leaves the stock on a P/E of 16. Sadly, I don&#8217;t think the demand for its products is likely to fall dramatically on a longer timeline either, potentially making Indivior an ideal buy-and-hold candidate.</p>
<p>That said, it&#8217;s worth noting that this stock has shown itself to be highly volatile in the past. Back in 2020, for example, the price crashed 30% in just one day after news that former parent company <strong>Reckitt</strong> had <a href="https://www.theguardian.com/business/2020/nov/27/indivior-shares-plunge-at-the-start-of-1bn-opioid-claims-lawsuit">filed a lawsuit against it</a>. That&#8217;s the sort of movement we might associate with a penny stock. It also makes me doubt whether I&#8217;d want to add the stock to my own portfolio, particularly as Indivior doesn&#8217;t offer a dividend as compensation. </p>
<h2>Watches of Switzerland</h2>
<p>A third FTSE 250 member that&#8217;s done extremely well for shareholders has been <strong>Watches of Switzerland</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-wosg/">LSE: WOSG</a>). The premium timepiece seller&#8217;s value has climbed just over 155%, serving as a reminder to me that momentum can continue for a lot longer than one may expect. Every time I&#8217;ve assumed a pullback will occur, the share price has only moved higher. Investing is hard.</p>
<p>Like Future, however, I do question what may happen to the stock when the pandemic has finally passed. I suspect shoppers will want to use their cash on experiences rather than posh watches. As such, I still maintain that some kind of retreat wouldn&#8217;t be a surprise in 2022. The current valuation seems to make the risky assumption that management will execute its plans perfectly.</p>
<p>As good as recent trading in the UK and the US has been, a P/E of 37 looks too dear to me. WOSG stays on my watchlist for now. </p>
<p>The post <a href="https://www.twelfthmagpie.com/2021/12/27/3-ftse-250-stock-i-wish-id-bought-in-2021/">3 FTSE 250 stocks I wish I&#8217;d bought in 2021</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
<p><strong>More reading</strong></p><ul><li> <a href="https://www.twelfthmagpie.com/2026/06/23/up-50-this-year-this-ftse-250-stock-is-smoking-the-index/">Up 50% this year, this FTSE 250 stock&#8217;s smoking the index</a></li><li> <a href="https://www.twelfthmagpie.com/2026/06/13/having-fallen-up-to-60-9-are-these-dirt-cheap-bargain-uk-shares-to-buy/">Having fallen up to 60.9%! Are these dirt cheap bargain UK shares to buy?</a></li></ul><p><em>Paul Summers has no position in any of the shares mentioned. 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 <a href="https://www.twelfthmagpie.com/help/disclaimer/what-does-it-mean-to-be-motley/">us better investors.</a></em></p>
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                                <title>Is this the best FTSE 250 growth stock to buy now?</title>
                <link>https://www.twelfthmagpie.com/2021/11/09/is-this-the-best-ftse-250-growth-stock-to-buy-now/</link>
                                <pubDate>Tue, 09 Nov 2021 12:05:56 +0000</pubDate>
                <dc:creator><![CDATA[Paul Summers]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Coronavirus]]></category>
		<category><![CDATA[FTSE 250]]></category>
		<category><![CDATA[Growth shares]]></category>
		<category><![CDATA[Growth Stock]]></category>
		<category><![CDATA[Watches of Switerland]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=254276</guid>
                                    <description><![CDATA[<p>This FTSE 250 (INDEXTFTSE:MCX) growth stock just can't stop rising. Paul Summers takes a timeout to examine its latest set of numbers.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2021/11/09/is-this-the-best-ftse-250-growth-stock-to-buy-now/">Is this the best FTSE 250 growth stock to buy now?</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[<p>Charged with picking one of the best <strong>FTSE 250</strong> growth stocks to buy now, I wonder how many might select <strong>Watches of Switzerland</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-wosg/">LSE: WOSG</a>). The shares have been ticking up ever since the company came to market back in 2019. They’re up again today on news that the business would be raising its full-year guidance. So should I buy?</p>
<h2>Revenue jumps</h2>
<p>It’s not hard to see why WOSG’s management is so bullish on the company’s outlook. <span class="ea">Revenue was 44.6% higher in the six months to Halloween than achieved in the same period in 2020.Â </span></p>
<p>Sales in the UK were particularly strong, hitting<span class="ea"> Â£418.6m. That’s a stonking jump of 42.3%. As a sign of just how successful some of the company’s initiatives have been, roughly 40% of sales came from the company’s <a href="https://www.watches-of-switzerland.co.uk/by-personal-appointment">‘By Personal Appointment’ business</a>.</span></p>
<p>In the US, revenue hit Â£167.6m — over 50% up on H1 last year. That’s also 66.7% above that achieved two years ago. Indicative just how quickly the company is growing, <span class="ea">Q2 revenue was almost 80% higher than over the same three months in FY2020.</span>Â </p>
<p>In short, the company is doing very, very well.</p>
<h2 class="ek"><span class="dw">What now?</span></h2>
<p>Following this barnstorming performance, WOSG now believes it will generate between Â£1.15bn and Â£1.2bn in revenue for the full year. That’s a healthy increase on the Â£1.05bn-Â£1.1bn previously suggested.</p>
<p>This bullish call is despite the company not expecting tourism and airport business to bounce back to normal anytime soon. Then again, this might not be needed. Online sales at WOSG held up well over the period (+28.7%) even though its physical stores were fully open.</p>
<p>As investors might expect, the <strong>FTSE 250</strong> member is also planning to continue its invasion of the US. It’s recently agreed to purchase five stores in four new states. This move should generate around $100m in revenue once up and running and bring the total estate to 36 stores in 12 states.</p>
<h2>Priced to perfection?</h2>
<p>Somewhat understandably, WOSG shares were up 9% in early trading. This means the company’s valuation has climbed 186% in just 12 months and over 300% since listing in mid-2019. Assuming it has a good run-up to Christmas, I wouldn’t bet against this momentum continuing.Â </p>
<div class="tmf-chart-singleseries" data-title="Watches Of Switzerland Group Plc Price" data-ticker="LSE:WOSG" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>

<p>This is not to say WOSG’s fortunes will go on indefinitely. While expensive watches will still sell in good times and bad, the possibility of demand falling in the event of an economic downturn can’t be ignored. After all, the retailer has arguably benefitted from an exceptional period in which (some) people were able to save a lot of cash to spend on discretionary items once restrictions were lifted.Â </p>
<p>Aside from this, I reckon becoming a market darling also increases capital risk. When expectations are sky-high, the possibility of being disappointed also increases. This could mean the shares tumble on the first sign of trouble. For me, <em>this</em> would be time to pile in.</p>
<p>Of course, the danger of waiting for a major pull-back in a share price is that it never comes. This is why <a href="https://www.twelfthmagpie.com/2021/11/06/no-savings-at-30-heres-how-i-used-terry-smiths-tips-to-build-wealth/">star investorsÂ like Terry Smith</a> never attempt to time markets.Â </p>
<h2>Quality stock</h2>
<p>WOSG gives the impression of being a high-quality, well-run company with solid growth potential. At 33 times earnings, however, its shares is anything but cheap. For this reason alone, I’m not sure it’s the <em>best</em> FTSE 250 growth stock for me to buy today. Even so, it’s hard not to be impressed by recent progress.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2021/11/09/is-this-the-best-ftse-250-growth-stock-to-buy-now/">Is this the best FTSE 250 growth stock to buy now?</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
<p><strong>More reading</strong></p><ul><li> <a href="https://www.twelfthmagpie.com/2026/06/23/up-50-this-year-this-ftse-250-stock-is-smoking-the-index/">Up 50% this year, this FTSE 250 stock’s smoking the index</a></li></ul><p><em>Paul Summers has no position in any of the shares mentioned. 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 <a href="https://www.twelfthmagpie.com/help/disclaimer/what-does-it-mean-to-be-motley/">us better investors.</a></em></p>
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                                <title>Earnings season is coming! 3 great growth stocks I&#8217;ll be watching in November</title>
                <link>https://www.twelfthmagpie.com/2021/10/30/earnings-season-is-coming-3-great-growth-stocks-ill-be-watching-in-november/</link>
                                <pubDate>Sat, 30 Oct 2021 12:48:56 +0000</pubDate>
                <dc:creator><![CDATA[Paul Summers]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Avon Rubber]]></category>
		<category><![CDATA[Growth shares]]></category>
		<category><![CDATA[Growth stocks]]></category>
		<category><![CDATA[kainos]]></category>
		<category><![CDATA[Watches of Switerland]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=251543</guid>
                                    <description><![CDATA[<p>With a flood of updates due next month, Paul Summers picks out three quality growth stocks he'll be paying particular attention to.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2021/10/30/earnings-season-is-coming-3-great-growth-stocks-ill-be-watching-in-november/">Earnings season is coming! 3 great growth stocks I&#8217;ll be watching in November</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
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                                                                                            <content:encoded><![CDATA[<p>As if inflation, supply chain disruption and the pandemic weren’t enough to keep investors on their toes, November looks like being a packed month for earnings announcements. With this in mind, here are three great growth stocks I’ll be giving particular attention to.</p>
<h2>Quality… but at a price</h2>
<p>Belfast-based IT solutions provider <strong>Kainos</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-knos/">LSE: KNOS</a>) is down to report interim numbers on 15 November. Having more than doubled adjusted pre-tax profit to Â£57.1m in the previous financial year, it’s not unreasonable to think that the good times have continued. After all, the need for organisations to digitally transform their operations has never been greater.</p>
<p>This could be good news for the KNOS share price which has already climbed 61% in the last 12 months. I say ‘could’ because this really depends on whether the company is able to meet investors’ (lofty) expectations.</p>
<div class="tmf-chart-singleseries" data-title="Kainos Group Plc Price" data-ticker="LSE:KNOS" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>

<p>Kainos ticks many of my ‘quality growth’ boxes. High margins? Check. Strong returns on invested capital? Check. Low/no debt? Check.</p>
<p>The problem is that all this comes with an exceptionally high price tag of 53 times forecast earnings. So the risk here is that any slight misstep or loss of trading momentum might be poorly received by the market.</p>
<p>As things stand, that’s not an ideal risk/reward trade-off. Hence, I’ll be watching next month’s activity with interest.</p>
<h2>Ticking time bomb?</h2>
<p>I’ll also be following <strong>FTSE 250</strong> member <strong>Watches of Switzerland</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-wosg/">LSE: WOSG</a>). Like Kainos, investors in the luxury timepiece retailer have enjoyed a brilliant run of late. Its stock is up a little over 180% since the end of October 2020.</p>
<div class="tmf-chart-singleseries" data-title="Watches Of Switzerland Group Plc Price" data-ticker="LSE:WOSG" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>

<p>Based on its Q1 update, I think there’s a chance this momentum will carry on when H1 results are revealed on 9 November. Back in August, the company said trading in the UK has been “<em>exceptionally strong</em>” and that the US business was seeing “<em>excellent, broad-based growth”.</em>Â Group revenue hit Â£297.5m — more than double that achieved over the same period last year.</p>
<p>WOSG shares currently trade at 33 times earnings. While still pricey, that’s far more palatable than its FTSE 250 peer’s valuation. Then again, operating margins in this line of work aren’t exactly massive (9% last year). It makes you wonder what might happen to investor sentiment if consumers begin to tighten their belts again as lockdown savings run out.Â </p>
<p>Could this growth stock actually be a ticking time bomb? We’ll soon find out.Â </p>
<h2>Contrarian pick</h2>
<p>Also on my watchlist is respirator and ballistics expert <strong>Avon Protection</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-avon/">LSE: AVON</a>). Of the companies mentioned here, this is the one I’d be most likely to buy next month.</p>
<p>Labelling Avon as a ‘great’ growth stock may seem odd. The shares have plunged in value recently following <a href="https://www.avon-protection-plc.com/news-resources/press-releases/press-releases1/trading-update/#currentPage=1">news of order delays</a>, supply chain disruption and a “<em>tight labour market</em>“.</p>
<div class="tmf-chart-singleseries" data-title="Avon Technologies plc Price" data-ticker="LSE:AVON" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>

<p>To me, these issues are temporary. Even so, external forces could impede Avon for a while yet. As a result, I don’t expect a quick rebound when full-year results are revealed on 23 November. That’s despite the company saying it possessed a “<em>strong order book</em>” earlier this month.</p>
<p>Still, shares trade at under 20 times forecast FY22 earnings. This looks reasonable for a leader in a niche market with significant barriers to entry. Contrarians are also being compensated with <a href="https://www.twelfthmagpie.com/2021/10/29/3-ftse-250-dividend-stocks-to-buy-and-hold-for-years/">dividends</a>, although the yield is just 1.7%.</p>
<p>Taking into account this margin of safety, I’ll be hovering over the ‘buy’ button next month.Â </p>
<p>The post <a href="https://www.twelfthmagpie.com/2021/10/30/earnings-season-is-coming-3-great-growth-stocks-ill-be-watching-in-november/">Earnings season is coming! 3 great growth stocks I’ll be watching in November</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
<p><strong>More reading</strong></p><ul><li> <a href="https://www.twelfthmagpie.com/2026/06/23/up-50-this-year-this-ftse-250-stock-is-smoking-the-index/">Up 50% this year, this FTSE 250 stock’s smoking the index</a></li><li> <a href="https://www.twelfthmagpie.com/2026/06/13/how-much-do-you-need-to-invest-to-build-a-100000-stock-and-shares-isa/">How much do you need to invest to build a Â£100,000 Stock and Shares ISA?</a></li></ul><p><em>Paul Summers has no position in any of the shares mentioned. The Motley Fool UK has recommended Avon Protection and Kainos. 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 <a href="https://www.twelfthmagpie.com/help/disclaimer/what-does-it-mean-to-be-motley/">us better investors.</a></em></p>
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                                <title>3 &#8216;no brainer&#8217; FTSE 250 stocks I&#8217;d buy on the next market correction</title>
                <link>https://www.twelfthmagpie.com/2021/09/14/3-no-brainer-ftse-250-stocks-id-buy-on-the-next-market-correction/</link>
                                <pubDate>Tue, 14 Sep 2021 09:37:21 +0000</pubDate>
                <dc:creator><![CDATA[Paul Summers]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[FTSE 100]]></category>
		<category><![CDATA[FTSE 250]]></category>
		<category><![CDATA[Games Workshop]]></category>
		<category><![CDATA[Growth shares]]></category>
		<category><![CDATA[stock market crash]]></category>
		<category><![CDATA[Watches of Switerland]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=241915</guid>
                                    <description><![CDATA[<p>Paul Summers highlights three high-quality FTSE 250 (INDEXFTSE:MCX) stocks he'd buy if or when markets lose their post-pandemic momentum. </p>
<p>The post <a href="https://www.twelfthmagpie.com/2021/09/14/3-no-brainer-ftse-250-stocks-id-buy-on-the-next-market-correction/">3 &#8216;no brainer&#8217; FTSE 250 stocks I&#8217;d buy on the next market correction</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
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                                                                                            <content:encoded><![CDATA[<p>Last weekend, I looked at a number of high-quality <a href="https://www.twelfthmagpie.com/investing/2021/09/11/4-ftse-100-stocks-id-buy-during-the-next-market-correction/">FTSE 100 stocks</a> I&#8217;d buy in the event of a market tumble (which I think looks increasingly on the cards). Today, I&#8217;m doing the same thing but with members of the FTSE 250. Here are three shares I&#8217;d hope to pick up at knockdown prices.</p>
<h2>Fantastic returns</h2>
<p>FTSE 250 fantasy figurine maker <strong>Games Workshop</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-gaw/">LSE: GAW</a>) would be a near-automatic buy for me if its share price were to be dragged down by a market-wide correction. The company screams quality, from high margins and returns on capital to a wonderfully robust financial position.  </p>
<p>Looking ahead, I also think there&#8217;s a lot to be positive about. The move into China and Japan via the opening of <em>Warhammer</em> stores/cafes should ensure that GAW keeps gaining new fans from &#8216;white space&#8217; markets. The forthcoming launch of video games and live action shows also bodes well. </p>
<p>As things stand, the stock commands a valuation of 31 times forecast earnings. That&#8217;s not surprising given that the company was a huge beneficiary of the multiple lockdowns since March 2020. At £4bn, however, it&#8217;s a very different proposition than it was a few years ago. So, the biggest risk I see here is the cost of not investing in a faster-growing (smaller) company elsewhere. This is why, for me, GAW is more of an opportunistic buy in troubled times.</p>
<h2>Waiting to for the right time</h2>
<p>Luxury watch seller <strong>Watches of Switzerland</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-wosg/">LSE: WOSG</a>) goes down as a classic example of a stock I&#8217;ve admired for quite a while but never actually pulled the trigger on. This reluctance has cost me dearly. The share price is up 220% in the last 12 months.</p>
<p>Based on recent updates, I see this continuing. In August, the FTSE 250 member revealed that <a href="https://www.londonstockexchange.com/news-article/WOSG/q1-fy22-trading/15091978">Q1 revenue had pretty much doubled</a> from that achieved in 2020. It was also 46% higher than in the same period in 2019. Throw in new store openings both here and abroad and WOSG could keep ticking higher.</p>
<p>Of course, all investments carry risk. Having done so well, many early owners may begin banking profits. On top of this, there might come a time when the post-lockdown spending flurry runs out and buying a posh watch isn&#8217;t a priority treat. </p>
<p>Overall, I remain very positive on WOSG. Nevertheless, I&#8217;d rather buy it for less than the 30 times earnings that the shares are currently changing hands for. </p>
<h2>FTSE 250 power play</h2>
<p>A third stock I&#8217;d buy if share prices fell across the board would be <strong>XP Power</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-xpp/">LSE: XPP</a>). As a one-time owner of the stock, I banked some good profits a while back and maintain a soft spot for the critical power control components manufacturer.</p>
<p>Like the other stocks, XP has shown itself to be resilient since the pandemic first struck. This performance has continued into 2021 with the company delivering &#8220;<em>another period of significant revenue and </em><em>profit growth&#8221;. </em>Backed by a strong order book, the company now expects its exposure to trends such as AI and the Internet of Things to allow it to grow in the future. </p>
<p>At 28 times earnings, XPP is the cheapest stock mentioned. That&#8217;s clearly still not a bargain though, especially as the company is exposed to &#8220;<em>price and availability pressures within the component supply chain</em>&#8220;. As such, I&#8217;m happy to delay buying back in for now.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2021/09/14/3-no-brainer-ftse-250-stocks-id-buy-on-the-next-market-correction/">3 &#8216;no brainer&#8217; FTSE 250 stocks I&#8217;d buy on the next market correction</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
<p><strong>More reading</strong></p><ul><li> <a href="https://www.twelfthmagpie.com/2026/06/27/forget-spacex-shares-id-rather-buy-shares-in-these-ftse-100-growth-heroes/">Forget SpaceX shares! I&#8217;d rather buy these FTSE 100 growth heroes</a></li><li> <a href="https://www.twelfthmagpie.com/2026/06/23/up-50-this-year-this-ftse-250-stock-is-smoking-the-index/">Up 50% this year, this FTSE 250 stock&#8217;s smoking the index</a></li><li> <a href="https://www.twelfthmagpie.com/2026/06/15/just-103-shares-of-this-ftse-100-stock-unlock-a-500-passive-income/">Just 103 shares of this FTSE 100 stock unlocks a £500 passive income!</a></li><li> <a href="https://www.twelfthmagpie.com/2026/06/08/turning-a-20k-isa-into-a-12508-second-income/">Turning a £20k ISA into a £12,508 second income</a></li><li> <a href="https://www.twelfthmagpie.com/2026/06/07/is-a-passive-global-index-fund-all-i-need-for-my-sipp/">Is a passive global index fund all I need for my SIPP?</a></li></ul><p><em>Paul Summers has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Games Workshop. The Motley Fool UK has recommended XP Power. 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 <a href="https://www.twelfthmagpie.com/help/disclaimer/what-does-it-mean-to-be-motley/">us better investors.</a></em></p>
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                                <title>These FTSE 250 growth stocks are crushing the index</title>
                <link>https://www.twelfthmagpie.com/2021/08/17/these-ftse-250-growth-stocks-are-crushing-the-index/</link>
                                <pubDate>Tue, 17 Aug 2021 09:53:10 +0000</pubDate>
                <dc:creator><![CDATA[Paul Summers]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[FTSE 250]]></category>
		<category><![CDATA[Future]]></category>
		<category><![CDATA[Growth shares]]></category>
		<category><![CDATA[Watches of Switerland]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=238260</guid>
                                    <description><![CDATA[<p>The FTSE 250 (INDEXFTSE:MCX) is up a very decent 33% over the last 12 months but these UK growth stocks have fared even better. </p>
<p>The post <a href="https://www.twelfthmagpie.com/2021/08/17/these-ftse-250-growth-stocks-are-crushing-the-index/">These FTSE 250 growth stocks are crushing the index</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
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                                                                                            <content:encoded><![CDATA[<p>Despite a few wobbles along the way, the FTSE 250 index is up 33% over the last year. That&#8217;s clearly a great result for anyone following the second tier of the London market via a cheap exchange-traded fund or tracker. However, this rise pales into insignificance when compared to the returns generated by some of its members.</p>
<h2>Timely gains</h2>
<p>Luxury timepiece seller <strong>Watches of Switzerland</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-wosg/">LSE: WOSG</a>) may not have the catchiest of names, but I&#8217;m sure investors won&#8217;t be too worried. Its share price has soared 230% higher over the last year.</p>
<p>With many people still working through savings amassed during multiple UK lockdowns, I wouldn&#8217;t bet against the shares continuing their ascent, especially with international travel still proving problematic. Last week&#8217;s Q1 trading update certainly didn&#8217;t contain any red flags.</p>
<p>At £297.5m, revenue was over double that achieved for the same 13-week period in 2020. Importantly, it was also 46% higher than that seen <em>two</em> years ago, before Covid-19 arrived. For me, the latter gives a better indication of just how well WOSG is doing.</p>
<p>As well as selling an awful lot of expensive watches, the company also logged a 99% rise in jewellery sales to £20.1m. Earnings are growing overseas too. Sales in the US were particularly strong, helped by more people visiting stores in Las Vegas and New York. <em><span class="dr"> </span></em></p>
<p class="ei">With new stores due to open both here and abroad and the firm&#8217;s <a href="https://www.watchpro.com/watches-of-switzerland-teases-launch-of-new-xenia-hospitality-concept/">mysterious Xenia project</a> set to launch next month, I suspect the good times might continue. Then again, a valuation of 32 times earnings is also pretty high and could come back to haunt me if general market sentiment turns.</p>
<p class="ei">So, while I think the long-term prospects remain solid, I wouldn&#8217;t necessarily throw everything I have at this FTSE 250-beater today. No stock rises in a straight line. WOSG remains a buy for me, albeit a cautious one, in my book. </p>
<h2>20-year share price high</h2>
<p>Media company <strong>Future</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-futr/">LSE: FUTR</a>) is another company whose share price has made great strides over the last year. In fact, that&#8217;s something of an understatement. Yesterday, the FTSE 250 stock rose to its highest level in two decades!</p>
<p>The catalyst for this rise was news that the firm would be acquiring Dennis Publishing for approximately £300m. The latter owns titles such as <em>The Week, MoneyWeek </em>and<em> PC Pro</em>. With this deal, Future intends to further diversify its revenue stream via subscriptions and increase its reach into the lucrative US market (where its brands currently reach one in three people online). </p>
<p class="ag"><span class="ae">This development follows hot on the heels of a recent, very positive trading update. Last month, the company announced that it expected its latest set of full-year results to come in &#8220;<em>materially ahead</em>&#8221; of what analysts were predicting. </span><em><span class="x"> </span></em></p>
<p>Future&#8217;s share price has now climbed 166% in 12 months. This is another example of just how profitable stock-picking can be for those willing to put the time and effort into fully researching specific businesses. Of course, luck can also play a not-insignificant role in short-term returns.</p>
<p>Like WOSG, I&#8217;d be inclined to think this momentum will continue. Again, however, this would be a cautious (rather than screaming) buy for my portoflio. On 31 times earnings, quite a bit of good news looked priced in and there&#8217;s not much in the way of <a href="https://www.twelfthmagpie.com/investing/2021/08/12/a-cheap-ftse-100-dividend-stock-id-buy-for-my-isa/">dividends</a> to compensate me for any setbacks.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2021/08/17/these-ftse-250-growth-stocks-are-crushing-the-index/">These FTSE 250 growth stocks are crushing the index</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
<p><strong>More reading</strong></p><ul><li> <a href="https://www.twelfthmagpie.com/2026/06/23/up-50-this-year-this-ftse-250-stock-is-smoking-the-index/">Up 50% this year, this FTSE 250 stock&#8217;s smoking the index</a></li><li> <a href="https://www.twelfthmagpie.com/2026/06/13/having-fallen-up-to-60-9-are-these-dirt-cheap-bargain-uk-shares-to-buy/">Having fallen up to 60.9%! Are these dirt cheap bargain UK shares to buy?</a></li></ul><p><em>Paul Summers has no position in any of the shares mentioned. 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 <a href="https://www.twelfthmagpie.com/help/disclaimer/what-does-it-mean-to-be-motley/">us better investors.</a></em></p>
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                                <title>3 of the best shares to buy before July</title>
                <link>https://www.twelfthmagpie.com/2021/06/28/3-of-the-best-shares-to-buy-before-july/</link>
                                <pubDate>Mon, 28 Jun 2021 06:30:51 +0000</pubDate>
                <dc:creator><![CDATA[Paul Summers]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[best shares to buy now]]></category>
		<category><![CDATA[FTSE 100]]></category>
		<category><![CDATA[Howden Joinery Group]]></category>
		<category><![CDATA[Smith and Nephew]]></category>
		<category><![CDATA[Watches of Switerland]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=227471</guid>
                                    <description><![CDATA[<p>Paul Summers highlights three companies that could be the best shares for him to buy before they report on trading next month. </p>
<p>The post <a href="https://www.twelfthmagpie.com/2021/06/28/3-of-the-best-shares-to-buy-before-july/">3 of the best shares to buy before July</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[<img width="1200" height="675" src="https://www.twelfthmagpie.com/wp-content/uploads/2021/03/CoffeeChat.jpg" class="attachment-rss-thumbnail size-rss-thumbnail wp-post-image" alt="Full length shot of a happy senior couple drinking coffee and spending time together at home" style="float:left; margin:0 15px 15px 0;" decoding="async" /><p>Today, I&#8217;m looking at what could be three of the best shares for me to buy before July starts. Why <em>before</em> July? Well, all of the companies highlighted below are down to provide updates to the market next month. And, based on what they had to say earlier in 2021, I think there could be more good news ahead.</p>
<h2>Watches of Switzerland</h2>
<p>Luxury watch retailer <strong>Watches of Switzerland</strong>&#8216;s (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-wosg/">LSE: WOSG</a>) share price has climbed almost 200% since last June due to strong trading. That&#8217;s despite store closures and much-reduced travel and tourism due to the pandemic.</p>
<p>Back in May, WOSG reported a 3.6% rise in sales in the UK where it&#8217;s the largest retailer of major brands such as Rolex. An &#8220;<em>outstanding result</em>&#8221; was also achieved in the US.</p>
<p>I doubt momentum has reversed in the last couple of months. In fact, sales are already expected to grow 16-21% in FY22 as people treat themselves to a new timepiece with lockdown savings. Factor in more airport sales as restrictions are lifted and WOSG&#8217;s shares could continue rising after the full-year numbers are confirmed on 8 July.</p>
<p>On 26 times earnings for FY22, the shares certainly aren&#8217;t cheap. Some may also feel that the good news is priced in for now. As a long-term investment, however, I continue to regard WOSG as <a href="https://www.twelfthmagpie.com/investing/2021/06/22/if-i-had-1000-to-invest-heres-a-top-uk-growth-stock-id-buy-now/">an attractive option for growth investors</a> such as myself.</p>
<h2>Howden Joinery</h2>
<p>A second stock that could see further positive momentum in July is kitchen supplier <strong>Howden Joinery</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-hwdn/">LSE: HWDN</a>). It reports half-year numbers on 22 July.</p>
<p>Howden&#8217;s shares are already up 48% over the last year, supported by the recent boom in home improvement. Back in April, the company reported a 13.1% rise in revenue for Q1 compared to 2019 (the year <em>before</em> the pandemic kicked off). </p>
<p>Of course, property owners may choose to spend their money on other things once Covid-19 restrictions are completely lifted. Moreover, we don&#8217;t know for sure whether the working-from-home trend will truly last. </p>
<p>Even so, I wouldn&#8217;t be inclined to sell based on the valuation. A P/E of 24 is undoubtedly steep. However, this isn&#8217;t too lofty for a company that consistently generates great returns on the money it invests. Howden also has the sort of solid balance sheet I look for when hunting for the best shares to buy and hold for the long term so I&#8217;m watching it closely. </p>
<h2>Smith &amp; Nephew</h2>
<p><span style="font-size: 16px;">A final stock I think could be worth me picking up before next month is medical equipment company </span><strong style="font-size: 16px;">Smith &amp; Nephew</strong><span style="font-size: 16px;"><a href="https://www.twelfthmagpie.com/company/?ticker=lse-sn"> (LSE: SN)</a>. Half-year results from the FTSE 100 member are due on 29 July. </span></p>
<p>In contrast to the other stocks mentioned, SN&#8217;s share price has barely climbed at all over the last year. Nevertheless, I think this could be set to change as postponed elective surgeries are finally allowed to proceed. Indeed, the company highlighted &#8220;<em>improving visibility</em>&#8221; back in April. A strongly rebounding Chinese market also gave us insight into how the company&#8217;s earnings in other parts of the world may fare post-pandemic.</p>
<p>Once again, there are no guarantees. There could still be a few chapters left in the Covid-19 tale left to unfold. Investors could be left waiting longer for that recovery <a href="https://www.bbc.com/news/world-europe-57594954">if the Delta variant proves more problematic</a>. Like the other stocks mentioned here, SN&#8217;s valuation of almost 25 times earnings doesn&#8217;t scream value either. But I&#8217;m considering this one.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2021/06/28/3-of-the-best-shares-to-buy-before-july/">3 of the best shares to buy before July</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
<p><strong>More reading</strong></p><ul><li> <a href="https://www.twelfthmagpie.com/2026/06/23/up-50-this-year-this-ftse-250-stock-is-smoking-the-index/">Up 50% this year, this FTSE 250 stock&#8217;s smoking the index</a></li><li> <a href="https://www.twelfthmagpie.com/2026/06/13/which-uk-stocks-are-investors-overlooking-right-now/">Which UK stocks are investors overlooking right now?</a></li><li> <a href="https://www.twelfthmagpie.com/2026/06/03/the-ftse-100s-howden-joinery-just-made-a-bold-move-should-investors-care/">The FTSE 100’s Howden Joinery just made a bold move — should investors care?</a></li></ul><p><em>Paul Summers has no position in any of the shares mentioned. The Motley Fool UK has recommended Howden Joinery Group and Smith &amp; Nephew. 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 <a href="https://www.twelfthmagpie.com/help/disclaimer/what-does-it-mean-to-be-motley/">us better investors.</a></em></p>
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                                <title>This under-the-radar FTSE 250 growth stock is up 250% since the market crash!</title>
                <link>https://www.twelfthmagpie.com/2021/01/29/this-under-the-radar-ftse-250-growth-stock-is-up-250-since-the-market-crash/</link>
                                <pubDate>Fri, 29 Jan 2021 10:05:03 +0000</pubDate>
                <dc:creator><![CDATA[Paul Summers]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[FTSE 250]]></category>
		<category><![CDATA[Growth]]></category>
		<category><![CDATA[UK shares]]></category>
		<category><![CDATA[Watches of Switerland]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=200145</guid>
                                    <description><![CDATA[<p>Not even Covid-19 could stop this FTSE 250 (INDEXFTSE:MCX) growth stock from multiplying in value in less than a year. Paul Summers takes a closer look. </p>
<p>The post <a href="https://www.twelfthmagpie.com/2021/01/29/this-under-the-radar-ftse-250-growth-stock-is-up-250-since-the-market-crash/">This under-the-radar FTSE 250 growth stock is up 250% since the market crash!</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
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                                                                                            <content:encoded><![CDATA[<p>One of the unsung stars of the <strong>FTSE 250</strong> index since the 2020 stock market crash is surely <strong>Watches of Switzerland</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-wosg/">LSE: WOSG</a>). Trading around the 180p level back then, its share price has since soared 250% to 640p by yesterday. Let&#8217;s look at why and whether I&#8217;d buy it. </p>
<h2>FTSE 250 star</h2>
<p class="afa"><span class="aet">December&#8217;s interim results &#8212; covering the 26 weeks of trading to 25 October &#8212; were certainly encouraging. </span></p>
<p class="afa"><span class="aet">Despite 2020 being such a tough year for most businesses, WOSG still managed to generate a little over £414m in revenue. In reported terms, this represented a decline of 3.4%. That&#8217;s not ideal but it&#8217;s far from disastrous considering the impact of the coronavirus on airport and tourist sales. The reduction of trading hours didn&#8217;t help either.</span></p>
<p>Statutory pre-tax profit for the FTSE 250 business rose to £36.2m over the period compared to a loss of £9m in 2019. <span class="aet">No wonder management was keen to describe this performance as &#8220;<em>robust</em>&#8220;.</span></p>
<h2>Can this continue?</h2>
<p>Quite possibly. <span class="aeo">Moving into Q3, WOSG said trading in had been &#8220;<em>stronger than anticipated</em>&#8221; despite ongoing coronavirus restrictions and the second national lockdown in England. Reported revenue for the seven weeks to 13 October was up 11.2%. Perhaps unsurprisingly, online sales over the period more than doubled. </span></p>
<p><span class="aeo">As a result of all this, WOSG increased its guidance on full-year revenue to somewhere between £900m and £925m. It was originally in the region of £880m-£910m. </span>Importantly, this guidance even assumed &#8220;<em>some further negative trading impact from potential lockdown measures in January and February 2021.</em>&#8221; Just as well.</p>
<p>Taking the above into account, the performance of Watches of Switzerland&#8217;s share price makes sense. Should I be joining the queue to buy the stock?</p>
<h2>Why I&#8217;m tempted</h2>
<p>Aside from recent trading, there are a few reasons why Watches of Switzerland catches the eye. It&#8217;s the market leader in the UK and is quickly growing a presence across the pond. Indeed, <a href="https://www.thewosgroupplc.com/news-media/the-watches-of-switzerland-group-usa-acquires-analog-shift/#:~:text=The%20acquisition%20will%20provide%20Watches,ability%20to%20purchase%20with%20confidence.">the firm acquired Analog Shift</a> &#8212; a US retailer of pre-owned and vintage watches &#8212; to support this strategy. </p>
<p>In addition to earnings becoming increasingly geographically diversified, WOSG also sees no material impact of Brexit on its supply chain. Moreover, the market for brands such as Rolex and Patek Philippe tends to be resilient, even through tough economic times.</p>
<p><span class="aeo">Another thing I really like is that t</span>he £1.6bn-cap is taking big steps to strengthen its balance sheet. Back in December, it said net debt at the end of its financial year would be between £60m and £80m. This is lower than previously thought.</p>
<h2>What&#8217;s not to like?</h2>
<p>Well, the valuation is pretty high. If I wanted to buy WOSG today, I&#8217;d need to pay the equivalent of 28 times forecast FY21 earnings. Having said this, a PEG (price/earnings to growth) ratio is around 1.2. A number this low is usually indicative of investors getting a good deal. So, perhaps the price isn&#8217;t all that steep after all? </p>
<p>Nonetheless, the are other things that don&#8217;t quite hit the mark. Returns on capital employed &#8212; <a href="https://www.twelfthmagpie.com/investing/2020/04/29/why-i-think-following-nick-train-and-terry-smith-could-help-you-retire-rich/">one of Terry Smith&#8217;s favourite ways of identifying quality companies</a> &#8212; are pretty average. Margins aren&#8217;t exactly high either. The lack of dividends, while understandable for a growth stock, also needs to be considered. </p>
<p>On balance, I&#8217;m keeping this FTSE 250 on my watchlist for now. Should another period of market mayhem occur in 2021, I may need to get involved.  </p>
<p>The post <a href="https://www.twelfthmagpie.com/2021/01/29/this-under-the-radar-ftse-250-growth-stock-is-up-250-since-the-market-crash/">This under-the-radar FTSE 250 growth stock is up 250% since the market crash!</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
<p><strong>More reading</strong></p><ul><li> <a href="https://www.twelfthmagpie.com/2026/06/23/up-50-this-year-this-ftse-250-stock-is-smoking-the-index/">Up 50% this year, this FTSE 250 stock&#8217;s smoking the index</a></li></ul><p><em><a href="https://boards.fool.com/profile/psummers/info.aspx">Paul Summers</a> has no position in any of the shares mentioned. 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 <a href="https://www.twelfthmagpie.com/help/disclaimer/what-does-it-mean-to-be-motley/">us better investors.</a></em></p>
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