Meanwhile, back home, the FTSE 100 is more popular for high-yielding dividend stocks. That’s because UK investors have historically been more income-inclined.

That can make UK shares feel boring. But for those who look beyond the megacaps, hidden growth gems exist.

I’ve found three that are far outpacing the S&P 500 this year.

CMC Markets

CMC Markets (LSE: CMCX) is a multi‑asset online trading and investing platform that quietly turned a strong year of volatility into record results. Recent FY2026 results revealed net operating income up 15% to £392.6m, while profit before tax climbed 20% to £101.3m.

Management is aggressively chasing institutional and B2B partnerships, Australian stockbroking alliances, and API deals with online banks. It’s also mentioned plans for a UK ‘Super App’. With return on equity (ROE) at around 17%, it appears to be using shareholder capital efficiently. 

The flip side is that CMC is entering a heavy investment phase, with operating expenses rising as it funds this growth. That adds a degree of execution risk.

If you’re bullish about the rise of retail and ‘gamified’ trading, it’s one worth considering. I think it’s got real potential.

Hardide

Hardide (LSE: HDD) is an AIM‑listed penny stock that provides specialist coatings. The shares hover around 70p–80p, with a market cap close of £57.5m.

For the year to 30 September 2025, revenue increased 27% to £6m and EBITDA reached £1m, moving the business firmly into profitable territory. Return on equity (ROE) looks high at 33%, but partly reflects a modest equity base.

Management is focused on aerospace and energy customers, with growth plans centred on North America. It’s a good angle, but also exposes the shares to customer concentration and industrial cycles.

Valuation is where things get uncomfortable. Recent ratios show a price‑to‑book (P/B) ratio of 7.78, far above many industrial peers and consistent with extreme overvaluation.

That means the current price is probably highly speculative. It could still go further, but I’d only consider a very small position at this point.

Keller Group

Keller Group (LSE: KLR) is a global ground‑engineering contractor, with a solid foundation in infrastructure and construction. I find that preferable to the hyped-up, speculative growth stories in US tech.

The 2025 annual report describes “record financial performance”, with revenue up 3% to £3,087.3m and underlying operating profit up 2.6% to £218.2m (at a 7.1% margin). A high ROE around 23% suggests Keller is not messing around with its shareholder capital.

The group finished 2025 in a net cash position of £59.7m, with a £1.5bn order book and plans for a £100m share buyback. CEO James Wroath said it was “a time of such strong performance and clear opportunity,” underlining management confidence. 

The thing is, construction and infrastructure is cyclical, so if the market weakens, Keller will follow. That adds volatility risk for investors.

Still, with a mix of decent growth potential and a sensible valuation, it feels like a quality compounder. For investors with a 10-20 year outlook, it’s another strong contender worth considering.

Should you invest £5,000 in Cmc Markets Plc right now?

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.

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?

Mark Hartley does not hold any positions in the companies mentioned.

The post 3 under-the-radar UK growth shares that are quietly beating the S&P 500 in 2026 appeared first on The Twelfth Magpie.

When it comes to how the market could react, the FTSE 250 is likely going to be more volatile. But why?

Mapping out scenarios

To be clear, I don’t believe we’ll see much initial reaction when/if Burnham gets confirmed as PM. I think most of this has already been factored into the stock market. However, the real move will come when he lays out his policy plans.

For the FTSE 250, the reaction will likely be high, as it’s home to more domestic companies that just trade in the UK than the FTSE 100. If investors conclude Burnham means higher business taxes, more regulation, rent controls and higher wage pressure (to name just a few points), stocks could fall. That would matter particularly for property stocks, as well as consumer discretionary firms such as pubs and retailers.

On the flipside, Burnham’s political brand isn’t purely anti-business. In fact, as Mayor of Greater Manchester, he built credibility in regional development, focusing on transport and infrastructure that helped the local economy.

If he appoints a market-friendly Chancellor and avoids broad-based corporate tax hikes, the FTSE 250 could rally. Again, this is likely more sensitive than the FTSE 100 because we’re talking about a credible domestic growth agenda that would naturally see investors rotate into domestic companies.

One to watch

One company that could do well in the second scenario is Keller Group (LSE:KLR). The stock’s up 80% in the past year, fuelled by record financial results. Back in March, the latest report put the strong numbers down to “sustained improvement in operational and financial performance and the Group’s geographic diversity, sector agility and resilience”.

When looking at the company through a Burnham lens, it could do well with a big push in infrastructure spending. Keller does ground engineering, so it’s the first company in before homebuilders or other contractors take over a site. So if we get a government push in this area, it could win a lot of contracts for foundations and major civil works.

It’s appealing as it’s less dependent on house prices than builders, and also has global revenues. So even if the political angle doesn’t work, it’s not the end of the world.

In terms of risks, it’s true that any infrastructure project takes years to plan, start, and finish. So the boost to Keller Group could take a long time to filter down to profits. Yet even with this point, I still think the company’s in a good spot and could be considered by those who think the new PM could push this agenda point.

Should you invest £5,000 in Keller Group Plc right now?

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.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Keller Group Plc made the list?

Jon Smith has no positions in the shares mentioned.

The post Burnham as the next PM matters more for the FTSE 250 than FTSE 100. Here’s why… appeared first on The Twelfth Magpie.

Starting with the basics

For investors who prefer a hands-off approach, a simple index tracker fund lets anyone instantly mirror the performance of the entire market.

Historically, the FTSE 100 has delivered an average total return of around 8% a year over the long run. Obviously, there’s no guarantee that will continue over the next three years. But let’s assume it does.

An investor maxing out their ISA by contributing £1,667 each month would accumulate a portfolio worth around £67,572.77 by this time in June 2029. Following the widely used 4% withdrawal rule, that’s enough to generate a modest but meaningful £2,702.91 in annual second income.

Not bad for three years of disciplined saving. But with the right stock picks, the numbers can look dramatically different.

What successful stock picking can unlock

Keller Group‘s (LSE:KLR) a prime example of what’s possible with successful stock-picking.

The world’s largest geotechnical specialist contractor has generated a staggering 297.4% total return over the last three years. That translates into an average annualised return of 58.4% – 7.3 times more than the stock market average!

In terms of money, anyone drip feeding £1,667 each month into the stock at that rate’s now sitting on a portfolio worth £155,265.55. And following the same 4% rule, that translates into a £6,210.62 annual second income.

To be fair, Keller’s an exceptional case rather than the norm. But it nonetheless demonstrates the enormous power of successful stock picking when things go right.

So what drove this performance? And does the growth story still have legs?

Is the best already behind it?

Keller’s outperformance has been built on a genuine operational transformation. A sharp recovery in its North American foundations business, improving project execution, and strong infrastructure spending tailwinds across its key markets all combined to deliver record 2025 results.

Skip ahead to 2026 and trading in the first four months is once again “strong compared with the prior year”. The order book has grown to £1.7bn, and the company remains resilient to rising input costs by capturing price increases across new contracts.

Of course, there are still risks for investors to consider. As a project-based contractor operating across dozens of countries, the group is inherently exposed to the risk of contract delays, cost overruns, and unexpected site conditions that can quickly erode margins.

With the conflict in the Middle East disrupting order timelines in certain regions, and rising labour and material costs compressing profitability across the wider construction sector, any deterioration in project execution could quickly dent the impressive earnings momentum built up over the last three years.

Worth a closer look?

Keller Group likely won’t deliver another 297% return over the next three years, at least not without a major surprise growth catalyst. But it still seems to be a genuinely high-quality compounder with a fortress balance sheet.

So for an investor seeking to build a meaningful custom portfolio that can generate a chunky second income, Keller shares could be a good place to start investigating.

Should you invest £5,000 in Keller Group Plc right now?

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.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Keller Group Plc made the list?

Zaven Boyrazian does not hold any positions in the companies mentioned.

The post How to try and turn an empty ISA into a £6,210 second income in the next 3 years appeared first on The Twelfth Magpie.

Is it worth considering for a Stocks and Shares ISA or Self-Invested Personal Pension (SIPP)? I think so – here’s why.

An under-the-radar AI play

Keller’s the world’s largest geotechnical specialist contractor. In simple terms, it specialises in getting ground ready to build on.

A diversified business, it operates across a range of industries including commercial (eg data centres), infrastructure, power, and industrial. While it’s a global operator, about 60% of its revenues come from the US.

Now, at present, the US is in the midst of a ‘mega project’ construction boom. Driven by the AI revolution, the energy transition, and federal legislation, businesses are building data centres, chip manufacturing plants, nuclear plants, and more.

This backdrop’s driving growth for Keller. Last month, the group said trading has been strong in 2026 so far, particularly in North America.

A high-quality business

Looking beyond this growth theme, there’s a lot to like about this company from an investment perspective. Its financials look strong.

For example, return on capital employed (ROCE) – a key measure of profitability – is high. Last year, it was 30.7%.

Note that companies with high ROCEs and a source of growth often get much bigger over time. That’s because they are able to reinvest profits at a high rate of return and compound their way to growth.

The balance sheet also looks very robust. At the end of 2025, the company had a net cash position of around £60m.

As for dividends, the company has a really good track record here. Believe it not, it’s paid a dividend every year since it came to the London Stock Exchange in 1994 (a track record that’s rare for an industrial company).

Now, as mentioned earlier, the yield isn’t super high. Currently, it’s only about 3.2%. However, dividend coverage (the ratio of earnings per share to dividends per share) is high and the payout’s growing. So we could see bigger dividends in the years ahead.

How’s the valuation?

Turning to the valuation, it’s low. Right now, the price-to-earnings (P/E) ratio here is around 10.2. At that earnings multiple, I see value on offer. In my view, there’s potential for expansion here too.

Of course, construction’s a cyclical industry (it has ups and downs). This could help to explain the low P/E ratio.

Ultimately, a severe economic downturn is a major risk with this company. In this scenario, demand for Keller’s services could dry up.

Other opportunities in the market

Given the backdrop in the US right now though, I’m bullish on this company. At the current low valuation, I believe it’s worth a closer look. That said, Keller isn’t the only dividend stock that looks interesting to me right now…

Should you invest £5,000 in Keller Group Plc right now?

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.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Keller Group Plc made the list?

Edward Sheldon owns shares in London Stock Exchange Group

The post A cheap UK dividend share with a P/E of 10.2 to consider buying for the AI boom appeared first on The Twelfth Magpie.

But that can mean it’s a better place to find overlooked stocks with amazing growth potential.

#1 Keller Group

Keller Group (LSE:KLR) is the world’s largest geotechnical specialist contractor, offering ground improvement, piling, grouting, earth retention, instrumentation, and monitoring services worldwide.

And it’s a winner on many levels.

It’s a top quality company, and that’s driven by its market position and economic moat. It’s not a huge moat, but large, complex infrastructure projects increasingly favour one contractor that can self-deliver multiple ground solutions.

It boasts a return on capital around of 19.7%, return on equity of 24.7%, and an underlying operating margin of around 6.7%. Its return on common equity at 26.7% is particularly strong, with the industrial sector average being around half of that.

You’d think this would mean the stock trades at high multiples. But it doesn’t. Keller Group trades at 7.9 times forward earnings with that figure expected to fall to 7.4 times in 2026.

This is complemented by a decent dividend yield, sitting around 3.2% for 2025 and rising to 3.4% in 2026. The balance sheet is pretty robust, with a net debt position around £154m. That’s very manageable for this £1.2bn-company.

Risks? Well the company has pointed to a slowdown in residential development work in the US — its largest market. This is mirrored in Europe. It’s clearly a cyclical stock, albeit with more structural drivers than a developer, for example.

Personally, I absolutely think this is a stock worth considering.

#2 TBC Group

TBC Group (LSE:TBC) shares are up 30% over the past 12 months. And strangely that means it’s lagging its Georgian peer Lion Finance, which is up 99%. That doesn’t mean TBC Group is overlooked, however. Lion Finance has simply performed better operationally.

However, I do think there’s a very strong argument that TBC Group is undervalued, regardless of where its peers are going. At 5.7 times forward earnings, falling to 5.1 times in 2026, it’s among the cheapest banks listed in the UK.

It also boasts strong profitability figures, including a 24.1% return on equity and an operating margin above 43%. These are far stronger than all UK high street banks.

The dividend is also a winner at 6%. Coverage at 2.9 times suggests this dividend isn’t under threat.

The risks are operational. Its Uzbek operations are complex to manage, and growth in its broad Georgian retail and SME markets have proven less profitable than Lion Finance’s strategy. Political and economic uncertainty in Georgia also adds risk.

However, if TBC executes well, scaling digital platforms, expanding lending, and improving efficiency, profitability could rise, boosting return on equity and potentially leading to a re-rating and higher shareholder returns.

I believe TBC Group is also worth considering.

The post Using figures not hunches: these FTSE 250 stocks could beat the market in 2026 appeared first on The Twelfth Magpie.

The stock market looks like it should end the year strongly. And interest rates appear increasingly likely to fall. That could mean a swing in favour of growth investing. Here are two I think investors should consider right now.

#1: Speedy Hire

With November’s first-half results update, Speedy Hire (LSE: SDY) CEO Dan Evans said: “Despite subdued markets, we are gaining market share and winning significant long-term contracts, leaving us far better positioned to take advantage as and when market conditions improve.”

The company did record a first-half loss before tax of £15.1m. And we’re still on for a full-year loss. But we saw underlying operating cash flow of £44.6m, which the board says should substantially help deleveraging in the next 12-24 months.

The “as and when market conditions improve” bit is the main sticking point. And I think the shares could remain weak at least until the full year is up. Or maybe even until we see the first concrete signs of getting back to profit.

Revenue boost

But Speedy Hire has a tie-up with ProService (previously HSS Hire) which the boss says should “generate £50m-£55m of annualised revenue and significant earnings accretion in its first full year after integration.”

There’s a forecast price-to-earnings (P/E) ratio of 7.3 for 2027, when analysts expect to see those profits returning. By the standards of potential multi-year growth stocks, that looks low to me.

The interim dividend was cut “in line with the previously guided rebasing of dividend payments,” announced in October. It should mean a total dividend of 1p per share. But that would still yield a decent 3.7% on today’s price.

#2: Keller

Ground engineering specialist Keller (LSE: KLR) is valued on a low forward P/E of 8.2. And it would drop as low as 7.6 on 2027 forecasts.

It all hinges on predicted steady growth in earnings per share between now and then. But in a November trading update, CEO James Wroath said the company “remains on track to deliver a full-year performance in line with market expectations.” So we should be on to hit an analyst consensus for underlying operating profit of £214m.

Management seems to think the shares are undervalued too. At least, that’s what the latest £25m share repurchase programme says to me — following from on a previous £25m buyback completed in the first half of the year.

Strong cash

On the liquidity front, the board is targeting a net debt/EBITDA range of between 0.5x and 1.5x. Anything above 2x and I might start getting a bit worried. But that sounds solid to me.

Profit margins in the business aren’t the biggest. And an average analyst target price of 1,890p is only 16% above the price at the time of writing — so not all that stretching a growth target. But even with the shares up 150% over five years, I still rate Keller as a growth stock to consider.

Oh, and there’s a dividend on the cards from this one too. The 3.2% yield would make a nice extra.

The post 2 potential champion UK growth stocks to consider buying in December appeared first on The Twelfth Magpie.

A low P/E might hint at a bargain — or it could be flashing a warning sign. That’s because these numbers alone don’t guarantee growth or a turnaround. They’re anchored in current or forecast earnings that depend on wider economic conditions, demand, supply chains and consumer habits. In other words, today’s ‘cheap’ stock might stay cheap if profits don’t recover.

Two FTSE shares currently stand out to me with P/E ratios under 7. But do they represent genuine bargains, or potential value traps?

The struggling private label goods giant

McBride (LSE: MCB) is Europe’s largest supplier of private label and contract-manufactured household cleaning products. From detergents to disinfectants, its goods fill the shelves of major supermarkets under own-brand labels.

Unfortunately, the company’s fortunes have plateaued. The share price tumbled 13% this week after its full-year trading update on 16 July revealed that operating profit will only be in line with expectations, largely due to a slowdown in demand for private label products.

This follows a price boost back in January, when McBride announced it would resume paying dividends. That’s a promising development that adds significant income value to the stock.

After the latest sell-off, it now trades on a rock-bottom P/E ratio of 5.8. That might seem tempting, but the relatively high P/B ratio of 2.8 tells a less comfortable story. 

What’s more, the forward P/E has climbed to 6.3, implying earnings are expected to decline further.

If the group can’t reignite demand or carve out new growth avenues, it’s hard to see the share price staging a meaningful comeback. For now, I’d consider steering clear until management delivers a workable turnaround strategy.

A solid foundation

By contrast, I think Keller Group‘s (LSE: KLR) an undervalued stock worth considering. The FTSE 250 geotechnical specialist handles piling, grouting and ground engineering projects across the globe. Despite a subdued performance this year, the shares are still up an impressive 124% over five years.

Keller looks attractively valued, with a current P/E of 7.2 that drops to 6.8 on a forward basis, suggesting the market expects earnings to improve. That view’s supported by earnings per share rising a hefty 60% year on year.

Profit margins are modest, but a robust return on equity (ROE) of 25.6% underscores management’s efficiency. Meanwhile, Keller offers a 3.55% dividend yield with a low 25% payout ratio. With over two decades of uninterrupted dividend payments, it has shown resilience through multiple cycles.

Of course, risks remain. CEO Michael Speakman steps down in August, which could unsettle leadership. Deutsche Bank also recently downgraded the stock to Hold, trimming its price target by nearly 8%.

My view

For me, McBride looks like a value trap — a low P/E masking weak underlying demand. Keller, on the other hand, seems genuinely undervalued, with a track record of rising earnings, reliable dividends and a forward outlook that still points upward. 

Among FTSE shares trading on low multiples, that’s exactly the combination I look for.

The post With P/E ratios below 7, are these undervalued FTSE shares bargains — or value traps? appeared first on The Twelfth Magpie.

Positive trajectory

As the world’s largest geotechnical specialist contractor, Keller has a unique position in the construction value chain — getting the ground ready for major infrastructure, industrial, and commercial projects. This positioning has allowed it to deliver consistent growth and resilience even as many UK small-caps have struggled to maintain momentum.

Earnings have grown significantly in recent years, with statutory profit after tax soaring 59% in 2024, for example. Another highlight from the 2024 results was the near-doubling of free cash flow to £192.6m as underlying operating margin rose 100 basis points to 7.1%.

A strong balance sheet

This operational strength is mirrored in Keller’s balance sheet. Net debt plummeted from £237.3m in 2023 to just £29.5m in 2024, with net debt-to-EBITDA leverage at a conservative 0.1x. Looking ahead, net debt is forecast to turn into net cash by 2027. The forecasts show a net cash position of £62.5m in 2027, but I believe this is too conservative. Either way, the strong balance sheet further de-risks the investment case, I feel.

Building on this, valuation metrics suggest Keller remains attractively priced. The forward price-to-earnings (P/E) ratio stands at 8.3 times for 2025, dropping to 7.9 times in 2026 and 7.6 times in 2027. That’s well below market averages for a business with Keller’s record and prospects.

The EV-to-EBITDA multiple is similarly modest, at 3.6 times for 2025 and trending down to three times by 2027. This multiple reflecting both earnings growth and deleveraging.

Meanwhile, dividend growth is decent. Dividends per share are projected to rise from 49.7p in 2024 to 58.5p by 2027. The yield increasing from 3.4% in 2025 to 3.7% in 2027 while coverage remaining strong. The payout ratio hovers around 27%-28% throughout the period. That indicates sustainability.

The bottom line

Keller’s long-term value creation is underpinned by structural growth drivers. Global demand for infrastructure renewal, urbanisation, and climate-resilient construction supports a healthy pipeline. The company’s exposure to sectors like power and industrial (27% of revenue) and infrastructure (33%) positions it well for secular trends. This includes the surge in data centre construction and the associated energy infrastructure.

However, investors must remain mindful of risks. The 2024 annual report highlights macroeconomic uncertainty, including the potential impact of US fiscal policy, such as Trump-era tariffs and spending bills. Broader economic slowdowns, inflationary pressures, and geopolitical tensions could also affect project pipelines and margins.

Nonetheless, I rather like Keller Group’s value proposition. It’s valuation in undemanding even though it operates in a typically cyclical sector and its balance sheet is strong. It’s a stock I’m going to watch very closely and I’d suggest other investors do so too. I believe there’s some evidence it could slowly push higher over the coming years.

The post A success story: this small-cap UK stock is up 126%… but can it go further? appeared first on The Twelfth Magpie.

Here, I’m going to highlight three shares that came up on my screen. I think these stocks could be worth considering as value plays in February.

A huge fall

Let’s start with JD Sports Fashion (LSE: JD.) because this stock has experienced a huge fall recently. Currently, it’s around 50% off its 52-week high.

Now, the company is experiencing some consumer demand challenges at present and these could persist in the months ahead. However, for patient long-term investors, I reckon there could be an opportunity here.

In the coming years, JD Sports Fashion is planning to roll out lots of slick new stores across the world in an effort to be a leading global retailer of athletic footwear and apparel. So, there’s potential for revenue and profit growth in the long run.

This stock currently trades on a forward-looking P/E ratio of just 6.3, so it looks dirt cheap. However, I’m using the earnings per share forecast for FY2026 (the year ending 31 January 2026) here and this could come down.

One person who clearly sees value though is CEO Regis Schultz – earlier this month, he bought £99k worth of stock.

Down but not out

Another stock that has tanked and looks cheap right now is insurer Prudential (LSE: PRU). Currently, it’s about 25% off its 52-week highs and trading on a P/E ratio of about eight.

The main problem for this stock has been China and its weak economy. Today, Prudential is heavily focused on Asia, and China represents a key part of its long-term growth strategy.

I expect economic conditions in China to pick up at some stage in the future. And when they do, Prudential’s earnings and share price should get a lift.

Of course, US/China trade wars are a risk now that Donald Trump is US President. These could hurt the company’s prospects.

On the plus side, Prudential has been buying back a ton of shares recently (it announced a $2m buyback last year). This move – which indicates that management sees the stock as cheap – should help to boost earnings over time.

A Trump play?

Speaking of Donald Trump, one UK stock that could potentially do well while he’s in power is Keller Group (LSE: KLR). It specialises in building foundation technology.

Over the next four years, the US is likely to see a huge amount of construction activity (data centres, semiconductor plants, infrastructure, etc.) as Trump aims to ‘make America great again’. Given that Keller has significant exposure to the US, it’s well placed to capitalise.

Like the other two stocks I’ve highlighted, this one is well off its 52-week highs (about 19%) and looks cheap. Currently, it trades on a P/E ratio of about 7.3 so it appears to offer a lot of value.

I will point out that Keller is a global company. So, weakness in other geographic regions is a risk.

Given the low valuation, however, I like the risk/reward setup. I reckon this stock can do well in the years ahead.

The post 3 heavily discounted UK shares to consider buying in February appeared first on The Twelfth Magpie.

The FTSE 250 enjoyed a bright start to 2024 but the momentum has fizzled out lately.

The index of medium-sized UK companies is up 10.44% over 12 months, but it’s dropped 2.51% in the last six. It’s down 3.03% in the last month as the UK recovery slows.

While blue-chips listed on the FTSE 100 generate 75% of their earnings overseas, many investors view the FTSE 250 as a domestic affair. Yet that’s not entirely accurate. Some 46% of turnover is generated from markets outside the UK.

I think this makes it nicely balanced to take advantage both of UK and international growth opportunities.

A great time to buy cheap UK shares?

Unfortunately, the UK hasn’t been great lately. GDP growth slumped in the third quarter, to just 0.1%. The economy actually shrank 0.1% in September.

And that was before the Budget on October 30, which hit employers with additional national insurance contributions totalling £25bn. That may squeeze margins and growth from April.

With interest rates now expected to stay higher for longer, next year may be tough too. Housebuilders, retailers, pubs, restaurants, financial services and property companies are heavily represented on the index, and may struggle if rates stay high.

Yet much of the risk is priced in, with the FTSE 250 trading on an average price-to-earnings (P/E) ratio of just 10.5. I’m used to it trading closer to 14 or 15 times earnings. For a long-term investor like me, I think this is a solid opportunity to hop on board. There’s just one thing holding me back.

Typically, I prefer to buy individual stocks rather than trackers. Lately, I’ve had my eye on FTSE 250-listed Keller Group (LSE: KLG). It’s a ‘geotechnical specialist contractor’, which means it lays the foundations for construction projects, and operates worldwide.

I’d rather buy shares in Keller Group

It’s the type of company that should do well when the global economy is booming, which it isn’t at the moment. On the other hand, with such a huge market to target, this £1bn company should be able to find more than enough opportunities.

It had a blistering first half, with statutory pre-tax profits jumping 121% to £95.3m and full-year performance “materially ahead” of expectations, according to its 6 August update.

I considered buying Keller on 22 September, but with its shares up 130% in a year I feared momentum might flag. I got that right as the shares have dipped 10.78% in the last month, although they’re still up 78.66% over 12 months. Is this a buying opportunity for me? I think so.

Keller relies on governments and businesses funding new infrastructure projects, which may slow in these troubled times.

On 14 November Keller said it was still on track to hit a full-year expectations but the shares dipped due to weakness in Europe. I’m now thinking the dip is a buying opportunity with a P/E ratio of just 9.5. That’s slightly below the index average. The yield has edged up to 3.03%.

I think this is a good time to consider a FTSE 250 tracker. But I think it’s an even better time for me to buy Keller Group. Which I’ll do when I’ve scraped together some cash.

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