I think these top stocks could be some of the best FTSE 250Â stocks for me to buy next year. Here’s why.
A tasty treat
Takeout sales at Domino’s Pizza Group have soared in recent times, thanks to Covid-19 lockdowns. Online food delivery specialists like this might receive a pandemic boost in 2022 too as infection rates balloon again.
Regardless, I’d buy this UK share anyway as the industry is tipped for excellent long-term growth. Analysts at Valuates Reports think the online food delivery market will be worth $128.5bn by 2027, up from $80.4bn last year.
Domino’s will have to paddle very hard to make profits in this ultra-competitive market. But I believe the business has colossal brand strength that could give it the edge.
Creature comforts
I’m also encouraged to buy Pets at Home Group, thanks to its excellent defensive characteristics. The amount people spend on domestic animals has soared during the coronavirus crisis and subsequent economic downturn. It’s thanks to a jump in pet adoption during the pandemic and the great esteem in which Britons hold their furry companions. Latest financials showed like-for-like sales leap 22.2% during the 28 weeks to 7 October.
A word of warning, however. Sales at Pets at Home could suffer if people give up their newly-adopted companions when the pandemic ends.
Riding the rentals boom
I think snapping up Grainger shares could also be a good idea for me. This FTSE 250 stock is one of the country’s largest residential property landlords, with a shade under 10,000 homes on its books. It’s therefore well-placed to exploit the twin benefits of rising rents and soaring property values in the UK. Zoopla data recently showed private rents increasing at their fastest pace since 2008.
I’d buy Grainger even though the Bank of England is considering loosening affordability rules for first-time buyers. This could significantly hit demand for residential rentals.
Healthcare hero
A blend of soaring Covid-19 cases and rocketing inflation gives UK share investors plenty to consider. I think buying Convatec Group shares could be a great way to protect myself from these pressures. This is because the medical products it supplies are essential items that people can’t do without. Convatec’s wares include colostomy bags, cannulas and wound dressings.
A high-profile failure of any of these products could prove disastrous for future sales. However, all things considered I think this could be a great stock for me to own for a potentially-volatile 2022.
A top FTSE 250 dip buy!
I think recent heavy selling at Hill & Smith Holdings provides me with an excellent dip buying opportunity. This UK share manufactures barriers, signage, gantries and an array of other side-of-road fixtures. It’s therefore well-placed to capitalise on the huge investment government is making in highway upgrades this decade. Most recent financials showed organic sales up 4% between July and October.
I’d buy Hill & Smith even though changes to infrastructure spending further out could hit profits hard.