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Any mid-cap inventory that jumps in worth over a brief period of time will all the time seize my consideration. However there are two examples from the FTSE 250 which have actually taken me abruptly these days.
Electrifying efficiency!
Shares in electricals retailer Currys (LSE: CURY) have been on an absolute tear during the last 12 months, rising 73%. In 2025 alone, they’re already up 34%. That’s vastly spectacular contemplating the index as an entire is barely in optimistic territory. It goes down as yet one more instance of how stock-picking has the potential to be much more profitable than proudly owning a fund that merely tracks an index’s return.
Then once more, Curry’s present purple patch isn’t all that stunning contemplating it not too long ago raised its steerage on full-year adjusted pre-tax revenue for the third time this yr. Round £162m is now anticipated, up £2m on what it predicted one month in the past.
Traders can even have cheered information that the corporate is now able to renew dividends. It hasn’t returned any money since January 2023.
Ought to buyers take into account shopping for?
The numerous rise that we’ve seen leads me to query whether or not the excellent news is all priced in.
On paper, a price-to-earnings (P/E) ratio of rather less than 12 for the present monetary yr suggests the £1.4bn cap isn’t overvalued. Even amongst shopper cyclical shares — a lot of which have been struggling in the course of the cost-of-living disaster — the worth tag doesn’t look excessive.
Alternatively, the current bounce in inflation wasn’t encouraging. The agency needed to deal with tax rises in April too. Tellingly, a few potential suitors additionally walked away final yr when the share value was an terrible lot decrease!
Nonetheless, I reckon essentially the most convincing argument for bears is that this can possible stay a (very) low-margin enterprise in a extremely aggressive house.
That’s why I’m inclined to suppose that the shares may start to float as targets change into more durable to hit.
Rocketing share value
One other mid-cap that’s been in glowing type is on-line greetings card and gifting platform Moonpig Group (LSE: MOON). Its inventory is up 19% in 2025 and 55% in 12 months.
Go additional again and anybody courageous sufficient to speculate when the shares hit their lowest ebb a few years in the past may have doubled their money!
As with Currys, the query is whether or not the ‘simple cash’ has already been made. The P/E of 16 is greater than its index peer, however Moonpig generates higher margins and returns on the cash it invests. However is that ample?
Lacking moat
April’s buying and selling replace said that full-year income could be between £350m and £353m, helped by “sturdy progress” in reward attachment charges and extra individuals signing as much as its subscription scheme. This could signify a slight enchancment on what it made in FY24 (£341m), albeit decrease than analysts have been anticipating.
However, I nonetheless can’t get excited by Moonpig. Just like the electricals retailer, it operates in a crowded a part of the market with no clear financial moat. Issues look set to get much more difficult as comparable companies abandon their excessive avenue presence and transfer wholly on-line.
The current introduction of dividends is optimistic however I’m not seeing huge catalysts for additional huge value features.
I’m not satisfied both is value contemplating at current.
