Looking for ISA bargains? 2 FTSE 250 shares that are too cheap for me to ignore
Stock markets continue to tumble as fears over fresh US trade tariffs grow. Despite its high concentration of UK-focused shares, the FTSE 250 index is now — at 19,786 points — down around 600 points over the past week.
It’s gloomy out there, as worries about economic stagnation and reignited inflation gather pace. I wouldn’t be surprised if share indexes keep falling in the near term.
Yet I’m not planning to stop buying UK shares, trusts, and funds for my portfolio. In fact, I’m keeping my eye out for bargains as spooked investors sell up. Purchasing quality shares at knock-down prices today can supercharge my returns when the market eventually recovers.
Here are two from the FTSE 250 that I’m currently considering buying for my Stocks and Shares ISA.
TBC Bank
TBC Bank (LSE:TBCG) — like any financial services company — is vulnerable to a sharp slowdown in the global economy. But I believe this is more than reflected in the rock-bottom valuation of its shares.
For 2025, it trades on a price-to-earnings (P/E) ratio of 5.5 times. And its P/E-to-growth (PEG) ratio is 0.3, created by City predictions of a 20% bottom-line rise. Any reading below one indicates that a share is undervalued.
Meanwhile, TBC’s forward dividend yield is 6.4%, adding a sweetenener for value investors.
This FTSE 250 share offers banking services in Eurasia. It generates the lion’s share from Georgia, and following recent expansion also has operations in Uzbekistan.
Financial product penetration in these territories is low. And with both economies growing strongly, demand for banking services is similarly soaring.
TBC’s loan book and deposits grew 14.2% and 8.1% respectively in 2024 (at constant currencies). As a consequence, net profit rose 14.7% year on year to 1.3bn Georgian lari.
Given its huge addressable markets — and the strong progress it’s making to digitalise its operations — I think TBC could be one of the best bank shares to consider today.
Ibstock
I already own Ibstock (LSE:IBST) shares on my portfolio. And I’m considering upping my stake given how cheap it looks relative to predicted earnings growth.
The brickmaker is tipped to enjoy earnings growth of 27% in 2025. This leaves it trading on a forward PEG ratio of 0.6.
Though they’ve perked up in recent days, Ibstock shares are down heavily over the last four months. This reflects fears that interest rates may not fall as sharply as hoped, denting homebuyer affordability and consequently construction rates.
While this is a substantial risk, I think that — on balance — the outlook is pretty bright for the FTSE 250 company. It said last week that sales volumes so far in 2025 were up year on year, and predicted “momentum building through the year.”
This perhaps isn’t surprising given the resilience of the housing market. Fresh financials from Persimmon on Tuesday (11 March) showed net private weekly sales per outlet up 14% in the first nine weeks of the year.
While interest rate risks remain, I’m expecting conditions to remain supportive in Ibstock’s end markets as inflation moves broadly lower.
The post Looking for ISA bargains? 2 FTSE 250 shares that are too cheap for me to ignore appeared first on The Motley Fool UK.
But here’s another bargain investment that looks absurdly dirt-cheap:
Like buying £1 for 31p
This seems ridiculous, but we almost never see shares looking this cheap. Yet this Share Advisor pick has a price/book ratio of 0.31. In plain English, this means that investors effectively get in on a business that holds £1 of assets for every 31p they invest!
Of course, this is the stock market where money is always at risk — these valuations can change and there are no guarantees. But some risks are a LOT more interesting than others, and at The Motley Fool we believe this company is amongst them.
What’s more, it currently boasts a stellar dividend yield of around 10%, and right now it’s possible for investors to jump aboard at near-historic lows. Want to get the name for yourself?
More reading
Royston Wild has positions in Ibstock Plc and Persimmon Plc. The Motley Fool UK has recommended Ibstock Plc. 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.
