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        <title>Cmc Markets Plc (LSE:CMCX) Share Price, History, &amp; News | The Twelfth Magpie</title>
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	<title>Cmc Markets Plc (LSE:CMCX) Share Price, History, &amp; News | The Twelfth Magpie</title>
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                                <title>CMC Markets: a FTSE dividend star worth considering for an ISA or SIPP?</title>
                <link>https://www.twelfthmagpie.com/2026/06/04/cmc-markets-a-ftse-dividend-star-worth-considering-for-an-isa-or-sipp/</link>
                                <pubDate>Thu, 04 Jun 2026 11:10:38 +0000</pubDate>
                <dc:creator><![CDATA[Edward Sheldon, CFA]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Market Movers]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=1700936</guid>
                                    <description><![CDATA[<p>This FTSE dividend stock doesn’t get a lot of attention. But things are starting to change as it’s posting brilliant numbers.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2026/06/04/cmc-markets-a-ftse-dividend-star-worth-considering-for-an-isa-or-sipp/">CMC Markets: a FTSE dividend star worth considering for an ISA or SIPP?</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
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<p class="wp-block-paragraph"><strong>CMC Markets</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-cmcx/">LSE: CMCX</a>) is a FTSE stock with a lot going for it. In my view, it doesn’t get the attention it deserves.</p>



<p class="wp-block-paragraph">Here, I’m going to highlight the bull case and look at the company’s latest numbers (which are fantastic). Could this stock be worth considering for an ISA or <a href="https://www.twelfthmagpie.com/investing-basics/investing-accounts/what-is-a-sipp-and-how-does-it-work/">SIPP</a>?</p>



<h2 id="h-a-scalable-business-model" class="wp-block-heading">A scalable business model</h2>



<p class="wp-block-paragraph">CMC is a leading provider of investment and trading platforms. Today, it operates in 12 countries, serving around 2m investors and traders.</p>



<p class="wp-block-paragraph">The beauty of its business model is that it can profit both when markets are rising and when they’re falling (traders often try to capitalise on volatility). Another attraction is that it’s very scalable – not only does it have the potential to consistently onboard new customers onto its platforms but it’s also doing white-label deals with other institutions.</p>



<h2 id="h-sensational-results" class="wp-block-heading">Sensational results</h2>



<p class="wp-block-paragraph">The power of this business model is illustrated in today’s (4 June) preliminary results for the financial year ended 31 March 2026. For the year:</p>



<ul class="wp-block-list">
<li>Net operating income was up 15% year on year to £392.6m.</li>



<li>Profit before tax was up 20% to £101.3m.</li>



<li>Basic earnings per share (EPS) were up 22% to 27.5p.</li>
</ul>



<p class="wp-block-paragraph"></p>



<p class="wp-block-paragraph">On the back of this strong performance, the company hiked its dividend by 21% to 13.8p per share. That translates to a <a href="https://www.twelfthmagpie.com/investing-basics/how-to-value-shares/dividend-yield/">yield</a> of around 3.2% at today’s share price up (which is up about 17% after the results).</p>


<div class="tmf-chart-singleseries" data-title="CMC Markets Plc Price" data-ticker="LSE:CMCX" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>




<h2 id="h-what-s-driving-growth" class="wp-block-heading">What’s driving growth?</h2>



<p class="wp-block-paragraph">Digging deeper into the results, the company said that it saw a record performance in its Australian stockbroking business (it’s now the second largest stockbroker in Oz after doing a major deal with <strong>Westpac</strong> bank). Here, net operating income was A$140.3m, up 32% year on year.</p>



<p class="wp-block-paragraph">It also saw growth in institutional and B2B income during the year. It seems its Neobank API partnership is leading to significant new account openings and trading activity.</p>



<h2 id="h-bullish-outlook" class="wp-block-heading">Bullish outlook</h2>



<p class="wp-block-paragraph">While all of the above is encouraging, the outlook was perhaps the most exciting part of the results. Here, the company said that it has reached a “<em>key inflection point</em>,” with institutional and B2B partnerships providing access to large embedded client bases and enabling “<em>growth at scale</em>.”</p>



<p class="wp-block-paragraph">It expects the next 12 months to be a “<em>defining period</em>” as it rolls out a multi-asset super app. In terms of numbers, net operating income is expected to rise by at least 17% year on year in the current financial year.</p>



<h2 id="h-consider-buying-on-a-pullback" class="wp-block-heading">Consider buying on a pullback</h2>



<p class="wp-block-paragraph">Now, the share price has popped today (up 17% as I write) after these excellent results. So, it might not be smart to pile into the stock this minute.</p>



<p class="wp-block-paragraph">But if it pulls back a little, I think it’s worth considering. As I said, this is a very scalable company.</p>



<p class="wp-block-paragraph">Meanwhile, the valuation isn’t high. Assuming 15% growth in EPS next year, we are looking at a price-to-earnings (P/E) ratio of around 14.</p>



<p class="wp-block-paragraph">Of course, competition from the likes of <strong>Robinhood</strong> (I hold this stock), Trading 212, and Freetrade is a risk. Overall though, I see a lot of appeal.</p>



<p class="wp-block-paragraph"><h2>Should you invest £5,000 in Cmc Markets Plc right now?</h2>
<p>When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.</p>
<p>And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Cmc Markets Plc made the list?</p>
<div class="wp-block-custom-block-collection-cta-button">
	<a href="https://www.twelfthmagpie.com/int-free-best-buy-now/" style="background-color:#5fa85d; width:fit-content; display:inline-flex; cursor:pointer; justify-content:center; align-items:center; transition:all 0.3s ease;border-width:0px; border-style:solid; border-color:#000000; border-top-left-radius:4px; border-top-right-radius:4px; border-bottom-right-radius:4px; border-bottom-left-radius:4px; --hover-background-color:#358832; --pressed-background-color:#0cbf06; padding-top:12px; padding-right:24px; padding-bottom:12px; padding-left:24px; margin-top:0px; margin-right:auto; margin-bottom:0px; margin-left:0px" class="custom-cta-button" data-hover-background-color="#358832" data-pressed-background-color="#0cbf06" ><p class="has-white-color has-text-color" style="margin-bottom:0px;padding-bottom:0px;font-style:normal;font-weight:600">See The Six Stocks</p></a>
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<p class="wp-block-paragraph"><em>Edward Sheldon owns shares in Robinhood Markets </em></p>
<p>The post <a href="https://www.twelfthmagpie.com/2026/06/04/cmc-markets-a-ftse-dividend-star-worth-considering-for-an-isa-or-sipp/">CMC Markets: a FTSE dividend star worth considering for an ISA or SIPP?</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
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                                <title>£1,000 buys 268 shares in this dirt-cheap dividend stock that’s on fire in 2026</title>
                <link>https://www.twelfthmagpie.com/2026/06/03/1000-buys-268-shares-in-this-dirt-cheap-dividend-stock-thats-on-fire-in-2026/</link>
                                <pubDate>Wed, 03 Jun 2026 07:05:00 +0000</pubDate>
                <dc:creator><![CDATA[Edward Sheldon, CFA]]></dc:creator>
                		<category><![CDATA[Dividend Shares]]></category>
		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=1700185</guid>
                                    <description><![CDATA[<p>This dividend stock offers the winning combination of growth, income, and value. Could it be worth considering for an ISA or SIPP?</p>
<p>The post <a href="https://www.twelfthmagpie.com/2026/06/03/1000-buys-268-shares-in-this-dirt-cheap-dividend-stock-thats-on-fire-in-2026/">£1,000 buys 268 shares in this dirt-cheap dividend stock that’s on fire in 2026</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[
<p class="wp-block-paragraph">While investors continue to pile into mainstream dividend stocks like <strong>Lloyds</strong>, <strong>Aviva</strong>, and <strong>Legal &amp; General</strong>, there are plenty of other income opportunities that could be worth considering. In the <strong>FTSE 250</strong> index, for example, there are many shares offering both income and growth at attractive valuations.</p>



<p class="wp-block-paragraph">Here, I’m going to highlight a cheap FTSE 250 dividend stock that I like the look of right now. It’s outperforming a ton of blue-chip names this year, so could it be worth a look?</p>



<h2 id="h-a-hidden-gem-in-the-ftse-250" class="wp-block-heading">A hidden gem in the FTSE 250</h2>



<p class="wp-block-paragraph">The stock in focus here is <strong>CMC Markets</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-cmcx/">LSE: CMCX</a>). It&#8217;s a leading provider of investment and trading platforms.</p>



<p class="wp-block-paragraph">Founded in 1989, it operates in 12 countries today. Globally, it has over 2m traders and investors on its platforms.</p>



<p class="wp-block-paragraph">Now, I last covered this FTSE 250 company in <a href="https://www.twelfthmagpie.com/2026/03/21/as-the-ftse-indexes-sink-these-unique-dividend-shares-are-making-investors-money/">March</a>. At the time, I was quite bullish on it.</p>



<p class="wp-block-paragraph">Since then, its share price has jumped about 12% to 372p. But I don’t think it’s too late to consider getting involved here as the fundamentals look very strong at the moment.</p>


<div class="tmf-chart-singleseries" data-title="CMC Markets Plc Price" data-ticker="LSE:CMCX" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>




<h2 id="h-a-great-business-model" class="wp-block-heading">A great business model</h2>



<p class="wp-block-paragraph">The beauty of this company is that it can do well when markets are rising and when they’re falling. When they’re rising (as they are now), people want to trade in order to capitalise.</p>



<p class="wp-block-paragraph">However, when they’re falling, people also want to trade. Some traders will look to close out positions to reduce risk while others will look to buy on the dip.</p>



<p class="wp-block-paragraph">Another thing to like about it is that it’s doing white label deals with other financial services firms. For example, it recently signed a major deal with Australian bank <strong>Westpac</strong> (and as a result is now Australia’s second-largest stockbroker).</p>



<p class="wp-block-paragraph">These kinds of deals offer a new source of growth. Note that late last year the company said that further partnerships were at an advanced stage (we might get more details on these when the company reports later this week).</p>



<h2 id="h-attractive-financials" class="wp-block-heading">Attractive financials</h2>



<p class="wp-block-paragraph">As for the financials, they look good. Revenue is rising – for the year ended 31 March analysts expect £392m versus £288m three years earlier.</p>



<p class="wp-block-paragraph">Meanwhile, return on capital employed – a key measure of profitability – is very high. And the balance sheet is strong.</p>



<h2 id="h-how-s-the-dividend-yield" class="wp-block-heading">How’s the dividend yield?</h2>



<p class="wp-block-paragraph">As for dividends, they’re attractive. For the financial year recently ended, analysts expect a payout of 14.7p per share.</p>



<p class="wp-block-paragraph">That translates to a <a href="https://www.twelfthmagpie.com/investing-basics/how-to-value-shares/dividend-yield/">yield</a> of nearly 4%. Note that dividend coverage is expected to be high so there could be scope for decent increases in the years ahead.</p>



<h2 id="h-the-valuation" class="wp-block-heading">The valuation</h2>



<p class="wp-block-paragraph">Zooming in on the valuation, it&#8217;s quite low. With analysts expecting earnings per share of 28.1p for the year recently ended, the <a href="https://www.twelfthmagpie.com/investing-basics/how-to-value-shares/pe-ratio/">price-to-earnings</a> (P/E) ratio is only 13.3.</p>



<p class="wp-block-paragraph">I see value on offer at that earnings multiple. In my view, the stock is a bargain today.</p>



<h2 id="h-worth-a-look" class="wp-block-heading">Worth a look?</h2>



<p class="wp-block-paragraph">Now, of course there are risks here. Probably the biggest one is competition from rivals.</p>



<p class="wp-block-paragraph">This is a competitive industry. And new players like <strong>Robinhood</strong> (I own shares here) are aggressively trying to capture market share.</p>



<p class="wp-block-paragraph">I like the risk/reward set-up, however. In my view, this dividend stock is worth a closer look.</p>



<p class="wp-block-paragraph">But it’s not the only dividend payer that looks interesting to me right now…</p>



<p class="wp-block-paragraph"><h2>Should you invest £5,000 in Cmc Markets Plc right now?</h2>
<p>When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.</p>
<p>And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Cmc Markets Plc made the list?</p>
<div class="wp-block-custom-block-collection-cta-button">
	<a href="https://www.twelfthmagpie.com/int-free-best-buy-now/" style="background-color:#5fa85d; width:fit-content; display:inline-flex; cursor:pointer; justify-content:center; align-items:center; transition:all 0.3s ease;border-width:0px; border-style:solid; border-color:#000000; border-top-left-radius:4px; border-top-right-radius:4px; border-bottom-right-radius:4px; border-bottom-left-radius:4px; --hover-background-color:#358832; --pressed-background-color:#0cbf06; padding-top:12px; padding-right:24px; padding-bottom:12px; padding-left:24px; margin-top:0px; margin-right:auto; margin-bottom:0px; margin-left:0px" class="custom-cta-button" data-hover-background-color="#358832" data-pressed-background-color="#0cbf06" ><p class="has-white-color has-text-color" style="margin-bottom:0px;padding-bottom:0px;font-style:normal;font-weight:600">See The Six Stocks</p></a>
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<p class="wp-block-paragraph"><em>Edward Sheldon owns shares in Robinhood Markets</em></p>
<p>The post <a href="https://www.twelfthmagpie.com/2026/06/03/1000-buys-268-shares-in-this-dirt-cheap-dividend-stock-thats-on-fire-in-2026/">£1,000 buys 268 shares in this dirt-cheap dividend stock that’s on fire in 2026</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
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                                <title>As the FTSE indexes sink, these unique dividend shares are making investors money</title>
                <link>https://www.twelfthmagpie.com/2026/03/21/as-the-ftse-indexes-sink-these-unique-dividend-shares-are-making-investors-money/</link>
                                <pubDate>Sat, 21 Mar 2026 09:35:00 +0000</pubDate>
                <dc:creator><![CDATA[Edward Sheldon, CFA]]></dc:creator>
                		<category><![CDATA[Dividend Shares]]></category>
		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=1664095</guid>
                                    <description><![CDATA[<p>These two dividend shares are in positive territory for the month and outperforming the major FTSE indexes by a significant margin.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2026/03/21/as-the-ftse-indexes-sink-these-unique-dividend-shares-are-making-investors-money/">As the FTSE indexes sink, these unique dividend shares are making investors money</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[
<p class="wp-block-paragraph">While the <strong>FTSE 100</strong> and <strong>FTSE 250</strong> indexes have slumped recently, not all shares on the <strong>London Stock Exchange</strong> have fallen. Believe it or not, there are some shares that have risen as markets have become turbulent, protecting investors from the volatility.</p>



<p class="wp-block-paragraph">Interested in learning more? Here’s a look at two of these stocks.</p>



<h2 class="wp-block-heading" id="h-rising-while-the-market-is-falling">Rising while the market is falling</h2>



<p class="wp-block-paragraph">One group of companies that often does well when market volatility picks up is financial trading businesses. The reason they tend to outperform is that volatility creates trading opportunities – when markets are swinging around wildly, customers want to place more trades.</p>



<p class="wp-block-paragraph">Now, one of my favourite UK stocks in this space is <strong>IG Group</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-igg/">LSE: IGG</a>). I’ve highlighted this name a few times recently as an undervalued growth (and income) play.</p>



<p class="wp-block-paragraph">It’s having a great run at the moment. This week, it actually hit new all-time highs.</p>



<p class="wp-block-paragraph">Relative to the FTSE 100 (which it’s set to join at the end of this month), it’s outperforming by a wide margin. Over a month, it’s up about 6% versus a 6% fall for the index.</p>


<div class="tmf-chart-singleseries" data-title="IG Group Holdings Plc Price" data-ticker="LSE:IGG" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>




<p class="wp-block-paragraph">Even near all-time highs, I still see a lot of appeal in the stock. Because it still looks relatively cheap (the forward-looking <a href="https://www.twelfthmagpie.com/investing-basics/how-to-value-shares/pe-ratio/">price-to-earnings</a> ratio is only 12) and offers an attractive <a href="https://www.twelfthmagpie.com/investing-basics/how-to-value-shares/dividend-yield/">dividend yield</a> (3.1%).</p>



<p class="wp-block-paragraph">Meanwhile, the company is performing well and just announced a strategic review to ensure it captures the full long-term opportunity ahead. “<em>We operate in large and fast-growing markets being reshaped by structural drivers, and now is the time to raise our ambitions,</em>” said the firm in an update.</p>



<p class="wp-block-paragraph">It’s worth pointing out that IG operates in a competitive market. Players it’s up against include the likes of <strong>Robinhood</strong> and Trading 212.</p>



<p class="wp-block-paragraph">It seems to be holding its own amid the growing level of competition, however. So, I think it’s worth considering for a portfolio.</p>



<h2 class="wp-block-heading" id="h-near-52-week-highs-despite-market-weakness">Near 52-week highs despite market weakness</h2>



<p class="wp-block-paragraph">Another company in this industry that could be worth a look though is <strong>CMC Markets</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-cmcx/">LSE: CMCX</a>). It offers similar services to IG but is significantly smaller (it’s in the FTSE 250 index).</p>



<p class="wp-block-paragraph">It’s not at all-time highs at the moment. But it is near 52-week highs, meaning that pretty much everyone who bought shares in the last year is now in positive territory.</p>


<div class="tmf-chart-singleseries" data-title="CMC Markets Plc Price" data-ticker="LSE:CMCX" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>




<p class="wp-block-paragraph">I see a lot of appeal in this name too. Like IG, it&#8217;s cheap (the P/E ratio is 11.5) and sports an attractive yield (4.4%).</p>



<p class="wp-block-paragraph">It also has momentum at the moment. Recently, it has done some major white label deals that could massively boost growth (one of these was with Australian banking giant <strong>Westpac</strong>).</p>



<p class="wp-block-paragraph">Again, competition is a risk. These days, traders and investors have a lot of choice when it comes to platforms.</p>



<p class="wp-block-paragraph">With a below-market-average valuation and an above-average yield, however, I like the risk/reward proposition. In my view, this stock is worth a closer look right now.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2026/03/21/as-the-ftse-indexes-sink-these-unique-dividend-shares-are-making-investors-money/">As the FTSE indexes sink, these unique dividend shares are making investors money</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
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                                <title>£1,000 buys 305 shares of this red hot UK financial stock that’s smashing Lloyds</title>
                <link>https://www.twelfthmagpie.com/2026/03/03/1000-buys-305-shares-of-this-red-hot-uk-financial-stock-thats-smashing-lloyds/</link>
                                <pubDate>Tue, 03 Mar 2026 11:45:24 +0000</pubDate>
                <dc:creator><![CDATA[Edward Sheldon, CFA]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Value Shares]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=1656427</guid>
                                    <description><![CDATA[<p>Investors in Lloyds will be chuffed with the performance of the shares over the last year. However, they could have generated much higher returns with this stock.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2026/03/03/1000-buys-305-shares-of-this-red-hot-uk-financial-stock-thats-smashing-lloyds/">£1,000 buys 305 shares of this red hot UK financial stock that’s smashing Lloyds</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[
<p class="wp-block-paragraph"><strong>Lloyds</strong> shares have performed well recently. Over the last year, they’ve risen about 36%.</p>



<p class="wp-block-paragraph">Yet that return looks rather pedestrian relative to the gains generated by a financial stock in the <strong>FTSE 250</strong> index. With this stock, investors could have picked up another 20 percentage points or so.</p>



<h2 class="wp-block-heading" id="h-a-hot-stock-in-the-ftse-250">A hot stock in the FTSE 250</h2>



<p class="wp-block-paragraph">The one I’m talking about is <strong>CMC Markets</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-cmcx/">LSE: CMCX</a>). It’s a leading online trading and investment business.</p>



<p class="wp-block-paragraph">Founded in 1989, it operates in 12 countries today. Services offered include stock and ETF trading (commission-free in many cases), FX trading, spread betting and contracts for difference (CFDs) trading, and white label solutions for other companies.</p>



<p class="wp-block-paragraph">At present, CMC shares trade for £3.27. That means £1,000 buys around 305 shares (ignoring trading commissions).</p>



<p class="wp-block-paragraph">The stock – which is up almost 60% over the last year – may not be at these levels for much longer though. I reckon it may only be a matter of time until investors spot the opportunity here.</p>


<div class="tmf-chart-singleseries" data-title="CMC Markets Plc Price" data-ticker="LSE:CMCX" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>




<h2 class="wp-block-heading" id="h-the-investment-opportunity">The investment opportunity</h2>



<p class="wp-block-paragraph">Looking at the set-up, there’s a lot to like about CMC shares, in my view. For a start, the company is well placed to benefit from volatility in the stock market (which is picking up as a result of several factors).</p>



<p class="wp-block-paragraph">When markets become volatile, investors and traders tend to place more trades. This translates to more revenue for the company (which takes a slice of every transaction through a spread between buy and sell prices).</p>



<p class="wp-block-paragraph">Second, the company has recently done some white label deals that could massively boost growth. One such deal was with Aussie bank <strong>Westpac</strong> (one of the big four banks in Australia).</p>



<p class="wp-block-paragraph">This is expected to increase the company’s user base significantly. And it should cement the company as the country’s second largest stockbroker.</p>



<p class="wp-block-paragraph">I’ll point out that I’ve used the company’s investment platform in Australia and it’s really good. With commission-free trading on offer for Australian share trades under $1,000, and zero fees for US stock trades, it’s very cost effective.</p>



<p class="wp-block-paragraph">Third, the valuation looks attractive. Currently, the forward-looking <a href="https://www.twelfthmagpie.com/investing-basics/how-to-value-shares/pe-ratio/">price-to-earnings</a> (P/E) ratio is only 11.6.</p>



<p class="wp-block-paragraph">That multiple looks too low to me. To my mind, there’s definitely scope for a valuation re-rating at some stage.</p>



<p class="wp-block-paragraph">Finally, the company is hiking its dividend. In November, it lifted its H1 payout by a whopping 77% to 5.5p per share.</p>



<p class="wp-block-paragraph">For the current financial year, analysts expect a payout of 14.7p per share. That puts the <a href="https://www.twelfthmagpie.com/investing-basics/how-to-value-shares/dividend-yield/">dividend yield</a> at about 4.5%.</p>



<h2 class="wp-block-heading" id="h-worth-a-look">Worth a look?</h2>



<p class="wp-block-paragraph">Now, of course, there are risks here. One is competition.</p>



<p class="wp-block-paragraph">Today, this area of financial services is intensively competitive. One rival to keep an eye on is <strong>Robinhood Markets</strong> (I just bought shares in this firm), which is having a huge amount of success at the moment.</p>



<p class="wp-block-paragraph">Another risk is regulation. In the future, regulators could decide to clamp down on higher-risk products like CFDs.</p>



<p class="wp-block-paragraph">Overall though, I see a lot of potential. I think this FTSE 250 stock warrants further research.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2026/03/03/1000-buys-305-shares-of-this-red-hot-uk-financial-stock-thats-smashing-lloyds/">£1,000 buys 305 shares of this red hot UK financial stock that’s smashing Lloyds</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
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                                <title>2 stocks to consider buying that outperformed during the last stock market crash</title>
                <link>https://www.twelfthmagpie.com/2026/02/25/2-stocks-to-consider-buying-that-outperformed-during-the-last-stock-market-crash/</link>
                                <pubDate>Wed, 25 Feb 2026 09:21:07 +0000</pubDate>
                <dc:creator><![CDATA[Jon Smith]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Investing For Beginners]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=1653316</guid>
                                    <description><![CDATA[<p>Jon Smith reviews the performance of two stocks during the 2020 market rout and explains why they both could be good ones to consider buying now.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2026/02/25/2-stocks-to-consider-buying-that-outperformed-during-the-last-stock-market-crash/">2 stocks to consider buying that outperformed during the last stock market crash</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">In early 2020, the pandemic outbreak caused the <strong>FTSE 100</strong> to crash. Even though it eventually recovered, investors who had some defensive picks in their portfolios certainly had a smoother ride than others did. Given some concern around whether the UK market is due for another crash, here are two stocks to think about buying that did well last time the market was under pressure.</p>



<h2 class="wp-block-heading" id="h-running-for-safety">Running for safety</h2>



<p class="wp-block-paragraph">During Q1 2020, the FTSE 100 fell by 25.4%. In comparison, <strong>Fresnillo </strong>(<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-fres/">LSE:FRES</a>) rose by 3.5%. The precious metals miner saw strong demand as gold and silver prices surged. Investors sought safe-haven assets during periods of market stress, with precious metals having a strong historical track record of outperforming.</p>



<p class="wp-block-paragraph">The intriguing part of buying Fresniollo as a defensive pick is that whatever the cause of the next crash might be, it&#8217;ll likely trigger a similar move to buy precious metals.</p>



<p class="wp-block-paragraph">In some cases, mining stocks can outperform the metals’ price. This is due to the operational leverage that Fresnillo (and <a href="https://www.twelfthmagpie.com/investing-basics/market-sectors/investing-in-mining-stocks-in-the-uk/" target="_blank" rel="noreferrer noopener">related companies</a>) have. What I mean by this is that if the price of silver jumps 10% tomorrow, Fresnillo can immediately benefit from a higher selling price. Yet the cost of extracting the metal hasn&#8217;t changed from the previous day. So it can increase output, enjoy the higher revenue, and also enjoy higher profits in the short term due to fixed costs of production.</p>



<p class="wp-block-paragraph">However, Fresnillo is a <a href="https://www.twelfthmagpie.com/investing-basics/understanding-the-market/what-is-market-volatility/" target="_blank" rel="noreferrer noopener">volatile stock</a>. As the share price is correlated to commodity prices, it can experience sharp swings both higher and lower. It&#8217;s up 412% in the past year, but with a price-to-earnings ratio of 147, some might understandably see it as overvalued at the moment.</p>


<div class="tmf-chart-multipleseries" data-title="Fresnillo Plc + CMC Markets Plc Price" data-tickers="LSE:FRES LSE:CMCX" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<h2 class="wp-block-heading" id="h-benefitting-from-volatility">Benefitting from volatility </h2>



<p class="wp-block-paragraph">Another stock to consider is <strong>CMC Markets</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-cmcx/">LSE:CMCX</a>). During Q1 2020, it rallied 22%. This was primarily due to the high market volatility, which drove a surge in retail trading activity. Given that CMC operates a retail trading platform, it was able to capture and benefit from these higher volumes. Profitability increased as it makes a small commission on each trade, so the more trades that occur, the more money it makes!</p>



<p class="wp-block-paragraph">Again, I think this could do well regardless of the cause of the next crash. Irrespective of the catalyst, we&#8217;ll likely see higher volatility in both stocks and other asset classes. CMC has a broad product range that can be traded, suggesting it should outperform as client activity increases.</p>



<p class="wp-block-paragraph">Further, it&#8217;s now a larger company than back in 2020. It&#8217;s expanded different partnership agreements, and in the latest half-year report noted that of the new account openings, <em>&#8220;around 70% of these accounts are from European countries where we have no physical presence.&#8221;</em></p>



<p class="wp-block-paragraph">One risk is higher competition. Other platforms catering to the same crowd have popped up in recent years, putting pressure on CMC to maintain market share.</p>



<p class="wp-block-paragraph">Even with the concerns, I think both stocks are worthy of consideration by investors right now.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2026/02/25/2-stocks-to-consider-buying-that-outperformed-during-the-last-stock-market-crash/">2 stocks to consider buying that outperformed during the last stock market crash</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
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                                <title>2 fallen FTSE 250 shares to consider buying before they bounce back</title>
                <link>https://www.twelfthmagpie.com/2025/06/08/2-fallen-ftse-250-shares-to-consider-buying-before-they-bounce-back/</link>
                                <pubDate>Sun, 08 Jun 2025 07:30:00 +0000</pubDate>
                <dc:creator><![CDATA[Alan Oscroft]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Value Shares]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=1528948</guid>
                                    <description><![CDATA[<p>These FTSE 250 stocks have just taken hits from results that didn't meet expectations. I think the market might have overreacted.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2025/06/08/2-fallen-ftse-250-shares-to-consider-buying-before-they-bounce-back/">2 fallen FTSE 250 shares to consider buying before they bounce back</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"><strong>Wizz Air Holdings</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-wizz/">LSE: WIZZ</a>) dipped sharply on Thursday (5 June) after the <strong>FTSE 250</strong> airline posted a 62% full-year operating profit fall. The shares have lost half their value in the past 12 months, and two-thirds over five years.</p>



<p class="wp-block-paragraph">But is Wizz in the bargain basement of airline sector stocks now? It just might be.</p>


<div class="tmf-chart-singleseries" data-title="Wizz Air Holdings Plc Price" data-ticker="LSE:WIZZ" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<h2 class="wp-block-heading" id="h-one-off-factor">One-off factor</h2>



<p class="wp-block-paragraph">The profit hit came mainly from issues over new Pratt &amp; Whitney engines, which grounded a number of planes. And the company suspended its 2026 guidance. So there&#8217;s clearly a fair bit of risk here, in a sector that&#8217;s already inherently risky.</p>



<p class="wp-block-paragraph">But the Wizz Air share price weakness has worked wonders for valuation. Forecasts put the 2026 <a href="https://www.twelfthmagpie.com/investing-basics/how-to-value-shares/pe-ratio/" target="_blank" rel="noreferrer noopener">price-to-earnings</a> (P/E) ratio down at just 5.4, and dropping even lower to 4.2 by 2027.</p>



<p class="wp-block-paragraph">I see no reason to think analysts will need to downgrade forecasts in any real way. Current bookings are good. And the company expects significant rises this year in revenue and capacity, coupled with lower costs.</p>



<h2 class="wp-block-heading" id="h-cheapest-of-the-bunch">Cheapest of the bunch?</h2>



<p class="wp-block-paragraph">That P/E is lower than at <strong>easyJet</strong>&#8216;s 6.8 predicted for 2027. And it&#8217;s even a bit below the 5.2 at <strong>International Consolidated Airlines</strong> whose longer-haul operations have been suffering. And Wizz Air has much stronger earnings growth forecast than either of those.</p>



<p class="wp-block-paragraph">I&#8217;ll give it a miss myself because the sector just don&#8217;t fit my strategy. But I reckon those who <a href="https://www.twelfthmagpie.com/investing-basics/market-sectors/investing-in-airline-stocks-in-the-uk/" target="_blank" rel="noreferrer noopener">invest in airlines</a> could do well to consider buying Wizz while it&#8217;s down.</p>



<h2 class="wp-block-heading" id="h-investing-platform">Investing platform</h2>



<p class="wp-block-paragraph">The <strong>CMC Markets</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-cmcx/">LSE: CMCX</a>) share price dipped the same day, on full-year results. That&#8217;s even though the annual dividend rose 37%. The company, which provides online trading and investing services, saw underlying <a href="https://www.twelfthmagpie.com/investing-basics/how-to-value-shares/what-is-ebitda/" target="_blank" rel="noreferrer noopener">EBITDA</a> grow 12% with profit before tax up 33%.</p>



<p class="wp-block-paragraph">But we did see revenue excluding interest income fall 2.3%. The 2024 share price recovery seems to have gone off the boil again.</p>


<div class="tmf-chart-singleseries" data-title="CMC Markets Plc Price" data-ticker="LSE:CMCX" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<h2 class="wp-block-heading" id="h-too-low">Too low?</h2>



<p class="wp-block-paragraph">Again, this is one where I think the weak share price performance could be out of line with forecasts and the valuation they imply.</p>



<p class="wp-block-paragraph">To be fair, in the latest update the company did speak of weakening interest income and a &#8220;<em>softer near-term outlook</em>&#8220;. And maybe we&#8217;ll see forecasts for the next two years scaled back a bit.</p>



<p class="wp-block-paragraph">But analysts currently see earnings per share rising 12% over the next two years, providing two-times cover for the predicted progressive dividends. Even if that might now be a bit optimistic, I still see enough safety margin in P/E multiples of only a bit over nine to cover it.</p>



<p class="wp-block-paragraph">And this is a company with net cash on the books, of £248m at 31 March, and forecast to improve further by 2027.</p>



<h2 class="wp-block-heading" id="h-crypto-risk">Crypto risk?</h2>



<p class="wp-block-paragraph">CMC&#8217;s cryptocurrency trading service is popular and can be profitable. But might it lose some attraction if today&#8217;s excitement should cool? And as economies settle, interest rates fall, and more investors head back to long-term stock markets, short-term trading could also slow.</p>



<p class="wp-block-paragraph">But on today&#8217;s valuation, I really think this could be a good time to consider getting in.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2025/06/08/2-fallen-ftse-250-shares-to-consider-buying-before-they-bounce-back/">2 fallen FTSE 250 shares to consider buying before they bounce back</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
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                                <title>After rocketing 232% in a year can this red-hot FTSE 250 stock keep going gangbusters?</title>
                <link>https://www.twelfthmagpie.com/2024/11/14/after-rocketing-232-in-a-year-can-this-red-hot-ftse-250-stock-keep-going-gangbusters/</link>
                                <pubDate>Thu, 14 Nov 2024 10:14:15 +0000</pubDate>
                <dc:creator><![CDATA[Harvey Jones]]></dc:creator>
                		<category><![CDATA[Growth Shares]]></category>
		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=1417626</guid>
                                    <description><![CDATA[<p>Harvey Jones says this FTSE 250 stock's on fire after smashing the index over the last year. It's cheaper than he expected, but could he get his fingers burned?</p>
<p>The post <a href="https://www.twelfthmagpie.com/2024/11/14/after-rocketing-232-in-a-year-can-this-red-hot-ftse-250-stock-keep-going-gangbusters/">After rocketing 232% in a year can this red-hot FTSE 250 stock keep going gangbusters?</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"><strong>CMC Markets</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-cmcx/">LSE: CMCX</a>) is easily the best performing <strong>FTSE 250</strong> stock of the last 12 months, climbing an astonishing 231.57% in that time.</p>


<div class="tmf-chart-singleseries" data-title="CMC Markets Plc Price" data-ticker="LSE:CMCX" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<p class="wp-block-paragraph">That&#8217;s the kind of performance we might expect from a US tech giant such as <strong>Nvidia</strong>, rather than a UK financial trading platform at a sketchy time for the FTSE.</p>



<p class="wp-block-paragraph">To put that into perspective, the FTSE 250’s second best performer, <strong>TrustPilot Group</strong>, is up ‘just’ 142.72% over the last year, the laggard.</p>



<h2 class="wp-block-heading" id="h-cmc-markets-moves-like-nvidia">CMC Markets moves like Nvidia</h2>



<p class="wp-block-paragraph">Sadly, I don&#8217;t hold any of these three fliers, and I&#8217;m poorer as a result. But there&#8217;s an obvious danger in chasing past performance. So what are the chances of CMC jumping another 232% in the next 12 months? I&#8217;d say it&#8217;s limited by its very success.</p>



<p class="wp-block-paragraph">With a market-cap of £875m, CMC does have room to grow. It doesn&#8217;t look too expensive despite its stellar success, with a price-to-earnings ratio of 18.98. That&#8217;s higher than the average FTSE 250 P/E of 11.1, but not out of sight.</p>



<p class="wp-block-paragraph">A price-to-revenue ratio of 2.7% makes me wary. It means I&#8217;d have to pay £2.70 for each £1 of sales CMC makes. A price-to-book value of 2.2 is also on the high side.</p>



<p class="wp-block-paragraph">Although a retail site, CMC is targeted at more sophisticated traders, specialising in contracts for difference (CFDs) and spread betting. It isn&#8217;t just a UK-focused operation, it has operations in Europe, Australia, New Zealand, Singapore and Canada.</p>



<p class="wp-block-paragraph">A company like this thrives on <a href="https://www.twelfthmagpie.com/investing-basics/understanding-the-market/what-is-market-volatility/">stock market volatility</a>, and with Donald Trump heading back to the White House, we&#8217;re likely to see a lot more of that. Yet the CMC share price hasn&#8217;t moved since the US presidential landslide, as many potential Trump trades have. That&#8217;s odd given that CMC offers crypto trading and Bitcoin&#8217;s going bananas.</p>



<p class="wp-block-paragraph">It may have been knocked by domestic post-Budget worries. Or concerns over the impact of Trump tariffs on the non-US markets that CMC operates in.</p>



<p class="wp-block-paragraph">CMC posted a blistering first-half update on 9 October, with net operating income up 45% to £180m as institutional business grew while operating costs fell.</p>



<h2 class="wp-block-heading" id="h-the-share-price-may-have-plateaued-for-now">The share price may have plateaued for now</h2>



<p class="wp-block-paragraph">CMC now anticipates that a £2m loss in the first half of the 2024 financial year will turn into a £51m profit before tax in H1 2025.</p>



<p class="wp-block-paragraph">Trading platforms rely on clients making enough money to remain interested and active. It has an inevitable turnover as wannabe day traders try out spread betting and – like I did – discover it&#8217;s a great way of losing real money fast.</p>



<p class="wp-block-paragraph">I&#8217;m therefore glad to see CMC targeting for both the institutional and business-to-business segment. It&#8217;s also looking to launch a cash ISA. That&#8217;s an odd decision but could offer a more stable revenue stream, albeit in a competitive market.</p>



<p class="wp-block-paragraph">I’ll have a better idea of its staying power when CMC releases interim results on 21 November.</p>



<p class="wp-block-paragraph">The four analysts offering one-year share targets have set a median price of 276.5p. If correct, that&#8217;s a drop of 11.74% from here.</p>



<p class="wp-block-paragraph">That confirms my suspicions that I&#8217;m coming to this stock too late. Despite CMC&#8217;s relatively modest valuation, there&#8217;s a risk of a pullback. This is one for me to buy in a <a href="https://www.twelfthmagpie.com/investing-basics/understanding-the-market/is-the-market-going-to-crash/">market crash</a>, should we get one.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2024/11/14/after-rocketing-232-in-a-year-can-this-red-hot-ftse-250-stock-keep-going-gangbusters/">After rocketing 232% in a year can this red-hot FTSE 250 stock keep going gangbusters?</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
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                                <title>1 FTSE 250 stock I&#8217;d love to snap up in the next stock market crash</title>
                <link>https://www.twelfthmagpie.com/2024/11/13/1-ftse-250-stock-id-love-to-snap-up-in-the-next-stock-market-crash/</link>
                                <pubDate>Wed, 13 Nov 2024 11:04:58 +0000</pubDate>
                <dc:creator><![CDATA[Jon Smith]]></dc:creator>
                		<category><![CDATA[Growth Shares]]></category>
		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=1416424</guid>
                                    <description><![CDATA[<p>Jon Smith reveals a FTSE 250 share on his watchlist that he thinks is a little overvalued right now but would be on his radar if the market fell.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2024/11/13/1-ftse-250-stock-id-love-to-snap-up-in-the-next-stock-market-crash/">1 FTSE 250 stock I&#8217;d love to snap up in the next stock market crash</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"></p>



<p class="wp-block-paragraph">Over the past week, stock markets around the world have jumped as the spill over from the US election result is felt. The <strong>FTSE 250</strong> index is up 8% so far this year, with some individual constituents up significantly more. Yet there&#8217;s one stock that I feel I&#8217;ve missed the boat on which I have on my watchlist if we get a significant correction.</p>



<h2 class="wp-block-heading" id="h-incredible-gains">Incredible gains</h2>



<p class="wp-block-paragraph">I&#8217;m referring to <strong>CMC Markets</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-cmcx/">LSE:CMCX</a>). The financial trading and investing platform has risen by a whopping 232% over the past year. The growth has been at a frantic pace, but the stock is currently too high for me to justify buying. Even from a valuation perspective, it looks stretched. For example, the <a href="https://www.twelfthmagpie.com/investing-basics/how-to-value-shares/pe-ratio/" target="_blank" rel="noreferrer noopener">price-to-earnings</a> ratio stands at 19.34, almost double the fair value benchmark of 10 that I use.</p>



<p class="wp-block-paragraph">Yet even though I&#8217;m not buying right now, any kind of sharp correction would see me step in. One of the main reasons why I like the stock is due to the way it makes money. CMC generates fees from trading activities. Put another way, the more that users buy and sell different assets, the more money it makes. So ideally, CMC wants to see volatile markets, enabling more opportunities for clients to trade and invest.</p>



<p class="wp-block-paragraph">Over the coming year, I think we&#8217;ll see such volatile markets. This relates to the start of the Trump presidency, a likely election in Q1 in Germany, persistent economic problems here in the UK and much more. I haven&#8217;t even started to talk about the surge in interest being seen in crypto (which CMC offers)!</p>



<p class="wp-block-paragraph"><em>The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of investment advice. Bitcoin and other cryptocurrencies are highly speculative and volatile assets, which carry several risks, including the total loss of any monies invested. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.</em></p>


<div class="tmf-chart-singleseries" data-title="CMC Markets Plc Price" data-ticker="LSE:CMCX" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<h2 class="wp-block-heading" id="h-a-potential-market-wobble">A potential market wobble</h2>



<p class="wp-block-paragraph">Some of this volatility might result in a stock market crash, which serves my purpose well in hopefully being able to buy the stock cheaper than current. I think that we could see a crash based on a couple of catalysts.</p>



<p class="wp-block-paragraph">One is the potential for escalating trade wars from the US and China. This could spook investors and cause stocks to tumble lower.</p>



<p class="wp-block-paragraph">Alternatively, it could be triggered by continued escalation in the Middle East. Given the impact this would likely have on oil, gold and other assets, stocks related to these commodities could be in for a rough ride.</p>



<h2 class="wp-block-heading" id="h-weighing-it-up">Weighing it up</h2>



<p class="wp-block-paragraph">There are some risks to my view. One is that we might never see the CMC share price tumble. So if I&#8217;m correct and the business does well and generates higher profits from client activity, I could miss the boat completely.</p>



<p class="wp-block-paragraph">Another risk relates to the business. In a recent update, it spoke about how it&#8217;s planning to offer more products, including Cash ISAs in the UK. I&#8217;m not sure that this is a good idea, as there are plenty of <a href="https://www.twelfthmagpie.com/investing-basics/isas-and-investment-funds/stocks-and-shares-isas/" target="_blank" rel="noreferrer noopener">existing providers of ISAs</a>. I don&#8217;t think CMC has a unique selling point in this area. As it continues to grow, it needs to select where it wants to focus on wisely.</p>



<p class="wp-block-paragraph">Even with those risks, it&#8217;s definitely a stock I&#8217;m keeping on my watchlist.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2024/11/13/1-ftse-250-stock-id-love-to-snap-up-in-the-next-stock-market-crash/">1 FTSE 250 stock I&#8217;d love to snap up in the next stock market crash</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
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                                <title>2 high-yield FTSE 250 shares I&#8217;d buy today &#8212; and 1 that I&#8217;d avoid</title>
                <link>https://www.twelfthmagpie.com/2024/11/05/2-high-yield-ftse-250-shares-id-buy-today-and-1-that-id-avoid/</link>
                                <pubDate>Tue, 05 Nov 2024 12:24:56 +0000</pubDate>
                <dc:creator><![CDATA[Mark Hartley]]></dc:creator>
                		<category><![CDATA[Growth Shares]]></category>
		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=1413524</guid>
                                    <description><![CDATA[<p>UK markets have felt some volatility after last week’s Budget and the FTSE 250 was no stranger to it. Our writer considers his options.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2024/11/05/2-high-yield-ftse-250-shares-id-buy-today-and-1-that-id-avoid/">2 high-yield FTSE 250 shares I&#8217;d buy today &#8212; and 1 that I&#8217;d avoid</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
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<p class="wp-block-paragraph">Last week&#8217;s Budget shook up UK markets and smaller-cap companies like those on the <strong>FTSE 250</strong> are particularly sensitive to such changes.</p>



<p class="wp-block-paragraph">With the largest tax increases in three decades, many companies felt the effects. But some stand to gain better than others.</p>



<p class="wp-block-paragraph">Here’s one FTSE 250 stock I’m avoiding and two that I think could benefit from the new budget.</p>



<h2 class="wp-block-heading" id="h-close-brothers-group">Close Brothers Group</h2>


<div class="tmf-chart-singleseries" data-title="Close Brothers Group plc Price" data-ticker="LSE:CBG" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<p class="wp-block-paragraph"><strong>Close Brothers Group</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-cbg/">LSE: CBG</a>) is in hot water due to a probe by the Financial Conduct Authority (FCA) regarding motor financing. The FCA is investigating historical claims related to commissions that car dealerships may have received for setting higher interest rates on vehicle loans.</p>



<p class="wp-block-paragraph">The bank is reportedly putting aside £400m to cover costs related to the probe.</p>



<p class="wp-block-paragraph">Subsequently, the bank has suspended its dividend for the current financial year and warned that it may continue to withhold dividends until at least 2025. It&#8217;s also agreed to sell its wealth management unit to Oaktree for £200m.</p>



<p class="wp-block-paragraph">If the bank successfully navigates this period and clears its regulatory challenges, there could be a decent recovery &#8212; especially if investor confidence rebounds and <a href="https://www.twelfthmagpie.com/investing-basics/how-shares-are-taxed-2/how-dividends-are-taxed/">dividends</a> resume. For investors looking to grab undervalued shares, that could be an opportunity.</p>



<p class="wp-block-paragraph">For now, however, I&#8217;ll be avoiding the shares.</p>



<h2 class="wp-block-heading" id="h-cmc-markets">CMC Markets</h2>


<div class="tmf-chart-singleseries" data-title="CMC Markets Plc Price" data-ticker="LSE:CMCX" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<p class="wp-block-paragraph">Online trading company <strong>CMC Markets</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-cmcx/">LSE: CMCX</a>) is popular for its contracts for difference (CFD) trading and financial spread betting.&nbsp;</p>



<p class="wp-block-paragraph">It&#8217;s up 214% in the past year but may have more room to grow – it’s still 41% down from its high of 536p in April 2021. And with a <a href="https://www.twelfthmagpie.com/investing-basics/how-to-value-shares/pe-ratio/">price-to-earnings</a> (P/E) ratio of only 18.6, it looks like good value at this price.&nbsp;</p>



<p class="wp-block-paragraph">Recently, it&#8217;s been expanding beyond traditional CFD trading to other areas such as institutional trading services and technology partnerships. This diversification reduces its dependence on retail CFD trading and helps to create additional revenue streams.</p>



<p class="wp-block-paragraph">That said, it&#8217;s exposed to the risk of changing regulations, especially in the retail trading industry. One recent example is restrictions on leverage within the EU. It also faces stiff competition from rivals like <strong>IG Group</strong> and <strong>Plus500</strong>.</p>



<p class="wp-block-paragraph">As the popularity of retail trading grows, I think CMC is well-positioned to benefit. I don&#8217;t want to miss out so I&#8217;m buying the shares as soon as possible!</p>



<h2 class="wp-block-heading" id="h-kainos">Kainos</h2>


<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 class="wp-block-paragraph"><strong>Kainos Group</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-knos/">LSE: KNOS</a>) is a digital services company specializing in IT services, software, and cloud solutions for the public sector, healthcare, and commercial clients. It&#8217;s benefited from increasing demand for digital transformation, particularly in the public and healthcare sectors.</p>



<p class="wp-block-paragraph">On 31 October, the shares fell 14% after it released a profit warning. The next day, both <strong>Deutsche Bank </strong>and Berenberg put in buy ratings for the stock, reflecting a positive long-term outlook. But with the price down 36% this year, why do they think it will recover?</p>



<p class="wp-block-paragraph">Kainos has partnerships with major tech companies like <strong>Microsoft </strong>and <strong>Amazon </strong>for cloud services. However, its key relationship is with <strong>Workday</strong>, a business management platform focused on finance and HR. This partnership has provided a steady stream of revenue and is a unique advantage, as Workday is widely adopted among large organizations and is expected to grow as more companies seek integrated cloud-based solutions.</p>



<p class="wp-block-paragraph">With a solid business and broad market presence, I expect a strong recovery. This is another stock I plan to buy imminently.</p>
<p>The post <a href="https://www.twelfthmagpie.com/2024/11/05/2-high-yield-ftse-250-shares-id-buy-today-and-1-that-id-avoid/">2 high-yield FTSE 250 shares I&#8217;d buy today &#8212; and 1 that I&#8217;d avoid</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
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                                <title>These under-the-radar FTSE 250 stocks haven&#8217;t just beaten the market. They&#8217;ve thrashed it!</title>
                <link>https://www.twelfthmagpie.com/2024/09/25/these-under-the-radar-ftse-250-stocks-havent-just-beaten-the-market-theyve-smashed-it/</link>
                                <pubDate>Wed, 25 Sep 2024 15:15:00 +0000</pubDate>
                <dc:creator><![CDATA[Paul Summers]]></dc:creator>
                		<category><![CDATA[Growth Shares]]></category>
		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://www.twelfthmagpie.com/?p=1389479</guid>
                                    <description><![CDATA[<p>If you think picking stocks never pays, our writer has news for you. Paul Summers highlights two FTSE 250 shares that have made a mockery of the index return. </p>
<p>The post <a href="https://www.twelfthmagpie.com/2024/09/25/these-under-the-radar-ftse-250-stocks-havent-just-beaten-the-market-theyve-smashed-it/">These under-the-radar FTSE 250 stocks haven&#8217;t just beaten the market. They&#8217;ve thrashed it!</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
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<p class="wp-block-paragraph">While the UK economy is far from firing on all cylinders, the home-focused <strong>FTSE 250</strong> index has climbed just under 7% in value since January (and 13% in the last 12 months).</p>



<p class="wp-block-paragraph">However, this is nothing compared to the performance of some of its constituents.</p>



<h2 class="wp-block-heading" id="h-magical-stock">Magical stock</h2>



<p class="wp-block-paragraph"><em>Harry Potter</em> has been a literary phenomenon. Even so, I suspect many people won&#8217;t be aware that the company getting the books into readers&#8217; hands is listed on our stock market. That&#8217;s <strong>Bloomsbury Publishing</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-bmy/">LSE: BMY</a>) and it&#8217;s been a superb investment for the last few years.</p>



<p class="wp-block-paragraph">Since September 2019, the shares price is up a spell-binding 186%. But just buying the stock in January would still have delivered a 42% gain. </p>



<p class="wp-block-paragraph">Oh, and there have been <a href="https://www.twelfthmagpie.com/investing-basics/how-shares-are-taxed-2/how-dividends-are-taxed/">dividends</a> on top of this!</p>



<p class="wp-block-paragraph"><div class="tmf-chart-singleseries" data-title="Bloomsbury Publishing plc Price" data-ticker="LSE:BMY" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>
</p>



<h2 class="wp-block-heading" id="h-lockdown-star">Lockdown star</h2>



<p class="wp-block-paragraph">Bloomsbury&#8217;s purple patch really kicked off during the pandemic. Sent behind our doors, many of us fell back into the habit of reading for leisure and earnings boomed. </p>



<p class="wp-block-paragraph">In contrast to other activities, this trend has endured since the bug was sent packing. Even a cost-of-living crisis doesn&#8217;t appear to have impacted momentum. In fact, the mid-cap has been busy <em>upgrading</em> guidance.</p>



<p class="wp-block-paragraph">The big question is how much of this is now priced in.</p>



<h2 class="wp-block-heading" id="h-more-to-come">More to come?</h2>



<p class="wp-block-paragraph">As I type, Bloomsbury stock changes hands for 20 times FY25 earnings. That&#8217;s more than the average across UK stocks.</p>



<p class="wp-block-paragraph">One could also argue that publishers can&#8217;t really predict which titles will be successful and that profits are overly-dependent on a small group of very popular authors. And writing books takes time.</p>



<p class="wp-block-paragraph">On the other hand, management&#8217;s efforts to grow the company&#8217;s academic arm by prioritising international sales, subject area expansion and digital scholarship could pay off. The balance sheet also looks pretty robust to me, with a decent net cash position.</p>



<p class="wp-block-paragraph">All told, Bloomsbury continues to present as a quality business. But it&#8217;s also one I&#8217;d prefer to pick up during a period of general market malaise. </p>



<h2 class="wp-block-heading" id="h-stunning-gains">Stunning gains</h2>



<p class="wp-block-paragraph">Another stock delivering the goods for private investors willing to stray off the beaten track has been <strong>CMC Markets</strong> (<a class="tickerized-link" href="https://www.twelfthmagpie.com/tickers/lse-cmcx/">LSE: CMCX</a>). </p>



<p class="wp-block-paragraph">Shares in the online trading platform provider have rocketed nearly 190% this year. Again, this doesn&#8217;t take into account the dividends received over the period (8.3p per share).</p>



<p class="wp-block-paragraph"><div class="tmf-chart-singleseries" data-title="CMC Markets Plc Price" data-ticker="LSE:CMCX" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>
</p>



<p class="wp-block-paragraph">There have been a number of catalysts for this incredible return. Chief among these has been an increase in trading activity among clients as markets have become <a href="https://www.twelfthmagpie.com/investing-basics/understanding-the-market/what-is-market-volatility/">more choppy</a>. In it&#8217;s most recent update, the company maintained its guidance on full-year operating profit of between £320m and £360m.</p>



<p class="wp-block-paragraph">But investors have also been cheering news of potential partnerships, product launches, and a sustained period of cost-cutting.</p>



<h2 class="wp-block-heading" id="h-risky-pick">Risky pick</h2>



<p class="wp-block-paragraph">As brilliant as recent returns have been, one does need to be aware that longer-term holders of CMC have endured a lot of pain. Between April 2021 and October 2023, the stock crashed by over 80% as the pandemic trading boom subsided.</p>



<p class="wp-block-paragraph">It&#8217;s also worth noting that the share price has been drifting sideways for a couple of months. Perhaps it might take an earnings upgrade to move higher. In the absence of a significant geo-political event, I&#8217;m not convinced that will happen when half-year numbers are announced in November.</p>



<p class="wp-block-paragraph">For this reason, CMC also stays on my watchlist. </p>
<p>The post <a href="https://www.twelfthmagpie.com/2024/09/25/these-under-the-radar-ftse-250-stocks-havent-just-beaten-the-market-theyve-smashed-it/">These under-the-radar FTSE 250 stocks haven&#8217;t just beaten the market. They&#8217;ve thrashed it!</a> appeared first on <a href="https://www.twelfthmagpie.com">The Twelfth Magpie</a>.</p>
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