2 beaten-down FTSE 250 shares that could soon take off!

Young brown woman delighted with what she sees on her screen

The FTSE 250 has been volatile in recent years. Despite this, I’ve been trawling through the index to find companies that I think could bring me growth in the future, particularly in the travel and mining sectors. Let’s take a closer look. 

Clearer skies ahead

Wizz Air’s (LSE:WIZZ) share price has plummeted in the past year. In that time, it’s fallen 57%, while over the last three months it’s down 40%. The shares are currently trading at 1,911p.

The short-haul airline suffered badly during the pandemic when virtually all planes were grounded. However, passenger numbers for June were 4.3m, up 179% year on year. This was at a load factor of 86.1%. 

Whatever way I look at these figures, they tell me that more planes are flying, and more passengers are on board. This can only be good news for the shares.

Furthermore, the firm also reinstated its jet fuel hedging policy, meaning it will be protected to some extent from surging oil prices.

However, for the three months to 30 June, the business swung to a €285m operating loss. While this may seem disappointing, it’s important to note that this could be short-term in nature. In recent months, many flights were cancelled as airlines across the world struggled to meet demand.

As the company recruits more cabin crew, I suspect financial results may continue to improve. Also, the easing of international restrictions mean that demand for travel will likely rise in the coming months. 

Citi recently upgraded the firm from ‘sell’ to ‘neutral’, citing its expectation that Wizz Air will surpass pre-pandemic profit levels in the coming years.

Steely determination

Shares in Ferrexpo  (LSE:FXPO) took a hit when Russia invaded Ukraine. This is chiefly because it’s a mining and iron ore pellet manufacturer operating in Ukraine. However, in the past week the share price is up 24%, currently trading at 145p.

Barclays recently upgraded the company to ‘equalweight’ and stated that it thought the shares may be cheap at current levels. Indeed, it increased its price target from 215p to 265p.

However, the firm lowered its production schedule due to the ongoing war. For the three months to 30 June, production fell 27%. On the other hand, Ferrexpo is working to resume sales through other seaports.

Moreover, Ukraine and Russia signed a deal last week to resume grain exports and this could be an early signal that hostilities are potentially moving towards some type of conclusion. This would only be good news for Ferrexpo, although there are no guarantees.

Overall, both of these companies have been battered for different reasons. However, financial results and geopolitical developments mean that both could see their share prices soon soar. Accordingly, I’ll be adding both businesses to my portfolio soon.

The post 2 beaten-down FTSE 250 shares that could soon take off! appeared first on The Motley Fool UK.

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Andrew Woods has no position in any of the shares mentioned. Citigroup is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool UK has recommended Barclays. 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.