Tag Archives: 51品茶茶馆儿

Shares to buy: 1 FTSE 250 stock I’d add to my portfolio

first_img See all posts by Zaven Boyrazian Are you on the lookout for UK growth stocks?If so, get this FREE no-strings report now.While it’s available: you’ll discover what we think is a top growth stock for the decade ahead.And the performance of this company really is stunning.In 2019, it returned £150million to shareholders through buybacks and dividends.We believe its financial position is about as solid as anything we’ve seen.Since 2016, annual revenues increased 31%In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259Operating cash flow is up 47%. (Even its operating margins are rising every year!)Quite simply, we believe it’s a fantastic Foolish growth pick.What’s more, it deserves your attention today.So please don’t wait another moment. The Covid-19 pandemic has caused significant disruptions all around the world, especially for industrial manufacturing. However, China recently issued a stimulus package to reboot its industrial manufacturing driven-economy. This is excellent news for one FTSE 250 stock I’m watching. Let’s take a look to see whether I should buy these shares for my growth portfolio.A fiery opportunity within the FTSE 250Bodycote (LSE:BOY) is a world-leading provider of thermal processing services. Put simply, it takes some metals, throws them into a glorified oven, and heats them under specific temperatures and pressures to manipulate their material properties. The process drastically improves the strength, toughness, and durability of metals and alloys—an essential trait for almost all machinery components today.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…The FTSE 250 company has been around for almost a century. It started out as a small textiles business in 1923. After a long trail of acquisitions, mergers and demergers, Bodycote now serves over 40,000 customers with 185 facilities across 23 countries.It has successfully built a strong reputation for excellence within the industrial sectors. Given the skill and precision required to correctly heat-treat metals, I believe its reputation has granted quite a high level of customer loyalty, as well as pricing power. Even if a competitor offers cheaper rates, I don’t believe this alone would be enough to convince existing customers to switch.Playing with fire can be a risky business As previously stated, Bodycote’s brand appears to be held in high regard by its customers and the industrial sectors in general. While this has undoubtedly granted it some competitive advantages, it also adds additional pressure. Industrial manufacturing companies typically rely on a ‘just-in-time’ supply chain. This is particularly important since Bodycote’s services are quite dangerous to perform. Accidents can happen. And while strict safety precautions help mitigate this risk, it will always be a present threat. If such a tragedy occurs, the disruptions will likely lead to delays in orders that will compromise its reputation.Another risk to consider is the international operations themselves. By having facilities outside the UK, the business should be quite resilient to any impact from Brexit. However, an unfortunate side effect of operating internationally is exposure to fluctuating currency prices from both a sales and expenses perspective.Bottom line: is Bodycote a FTSE 250 share to buy now?Treating metals is not the most glamourous sounding business. But the process is essential to industries such as aerospace, energy, and manufacturing. All of these sectors have been heavily impacted by Covid-19, and these disruptions have consequently been passed onto Bodycote. As a result, revenue and profits in 2020 took a significant hit.But now that factories are re-opening, the demand for thermal processing services is back on the rise. And Bodycote is still a leader within this space. That’s why I think now could be the best time to add the stock to my portfolio. Zaven Boyrazian does not own shares in Bodycote. The Motley Fool UK has recommended Bodycote. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Image source: Getty Images. Shares to buy: 1 FTSE 250 stock I’d add to my portfolio I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Get the full details on this £5 stock now – while your report is free. Speaking of the best shares to buy now, here is another that is on track to explode in 2021: Zaven Boyrazian | Saturday, 27th February, 2021 | More on: BOY Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Enter Your Email Address Our 6 ‘Best Buys Now’ Shares Simply click below to discover how you can take advantage of this. FREE REPORT: Why this £5 stock could be set to surgelast_img read more