Conversely, few sectors are currently witnessing a boom. But those companies that have continued to show strong growth are now receiving investor interest. I think this is the perfect time for me to diversify and pick up quality stocks on the way up. 

Shares that are defying trends

While the FTSE 100 is down over 6% this year, two overlooked gems on my watchlist have risen over 40% in three months. But looking at the fundamentals, they still look cheap. Let’s dive in. 

The energy sector is red hot right now. Despite the renewable energy push, oil is expected to power a majority of our industries for the foreseeable future. 

UK’s largest independent oil and gas business is Harbour Energy (LSE:HBR) and it has benefited greatly from this. Its shares are up over 41% in the last three months thanks to surging profits. 

In the first half (H1) of 2022, the company saw a 12-fold increase in pre-tax profits to US$1.49bn compared to $120m in H1 2021. The company cut down its net debt by 50% to $1.1bn and increased its 2022 shareholder payouts to $500m. 

Harbour Energy shares are trading at 448p with a price-to-earnings (P/E) ratio of 4.5 times. Given the current yield of 2.13%, which is expected to increase moving forward, this looks to me like a bargain. 

The next UK share on my list has jumped 47% over the last three months. 4imprint Group (LSE: FOUR) is a merchandise manufacturer that operates primarily in the US and controls 4% of the $23.6bn promotional products market.

The firm specialises in designing and manufacturing products that are functional adverts for large companies. 

In H1 2022, operating revenue was $515.54m, up 58% from H1 2021. Operating profits jumped a whopping 1124% to $43.98m primarily because of streamlined marketing and better pricing. 

4imprint doubled its new customer acquisitions and its order book grew 44% to 886,000 in 2022. The board is confident that the revenue target of $1bn will be achieved in 2022.

Its shares are currently trading at 3,645p at a P/E ratio of 20.9 times. Although this is not cheap on paper, I think its revenue growth in 2022 makes it a bargain. Many blue-chip businesses have struggled over the last few months, but 4imprint has shown considerable growth in a highly contested US market. 

Concerns and verdict

Tax cuts will plague oil companies moving forward. The world’s five biggest oil companies saw profits increasing by £50bn between April and June. This prompted a 25% energy profits levy in the UK that will bring the total tax on oil companies to 65%. 

Also, many US businesses are freezing hiring to improve margins. This is indicative of a slowing economy that could affect marketing spend. 

However, both businesses discussed here have reinvested smartly and have stronger balance sheets heading towards 2023. While there could be a slowdown, I think these shares have a lot of growth potential right now. I’ll probably make a lump sum investment in both shares when signs of market recovery become stronger. 

Which companies benefit from a strong dollar?

Several FTSE shares earn large portions of revenue in $USD. Furthermore, when dividends are paid out in $USD, they are worth more to investors when they are inevitably converted back to £GBP. This could boost such dividends by 10-20%.

However, if a company’s main manufacturing operations are outside the US, for example, then the currency markets will work against them. So, here are my top two picks for capitalising on potentially boosted dividends.

Dividend growth potential

The share price of 4imprint Group (LSE:FOUR) is up almost 20% year to date.

As I write, 4imprint’s payout ratio is low. This means earnings are easily covering investors’ dividends. Interim earnings this year for the supplier of custom promotional merchandise grew to almost $1bn. Profit margins grew too, and analysts expect earnings per share to grow by 27% over the next two years.

Over 90% of 4imprint’s revenue comes from the US. Also, a large portion of its manufacturing occurs in the US, with blank products being purchased from Chinese suppliers.

So, it seems most of the group’s transactions will benefit from a stronger dollar, especially £GBP dividend payments. The dividend yield currently stands at around 2%.

I think this has the potential for significant growth going forward, which is why I will be buying these FTSE shares for my portfolio in the coming days.

However, demand for marketing and promotional products does decrease during times of economic hardship. This could impact 4imprint’s revenue if its services aren’t deemed essential.

A dividend legend with big stakes in the US dollar

The current dividend yield for GSK (LSE:GSK) is much higher, at over 7%, and has a very reliable track record. Since 2015, the company have almost always exceeded an annual dividend yield of 5% for its investors.

Earnings grew by 16% for the pharmaceutical giant over the past year, and analysts predict them to grow by around 10% next year. GSK is one of the biggest players in the FTSE 100 and has very diversified international operations. Over one-third of its revenue is $USD.

Ahead of its Q3 results, GSK expects a 10% tailwind to its revenues. Earnings per share over the period are expected to increase by 12% from these favourable currency fluctuations.

However, the company does have a high ratio of debt to equity, which isn’t favourable in a climate where interest rates are surging.

Still, the high and reliable dividend yield is hard to resist especially with currency tailwinds. I’ll be keeping an eye on the GSK share price as a result, with a view to adding it to my portfolio in the near term.

Promotional marketing

As a quick reminder, 4imprint is a business that specialises in promotional marketing materials for businesses. It creates, and sells materials such as branded pens, bags, mugs, banners and much more for businesses to boost their marketing efforts.

So what’s happening with 4imprint shares currently? As I write, they’re trading for 3,720p. At this time last year, the stock was trading for 2,882p, which is a 29% increase over a 12-month period. 4imprint shares have bounced back nicely from the stock-market correction of March, which was caused by the tragic events in Ukraine.

A passive-income stock with risks

Firstly, marketing budgets and 4imprint’s performance have come under pressure in recent times. At first, the pandemic had a negative impact as the stay-at-home guidance caused firms to cut marketing spend to conserve cash in volatile times. 4imprint has bounced back from this based on recent performance updates.

The other aspect is the current economic crisis caused by soaring inflation. This inflation could lead to firms once again spending less on marketing as they have other essential costs they are worried about.

Next, as with any income stock, it is worth remembering that dividends are never guaranteed. They can be cancelled at any time at the discretion of the business. This is to help conserve cash in the face of a pandemic or financial crisis or recession for example.

Why I like 4imprint shares

So to the positives then. I am buoyed by the fact that 4imprint has a great performance track record over a long period of time. I am aware that past performance is not a guarantee of the future. However, looking back, I can see it has doubled sales and profit in the past five years.

Next, for any income stock, I want to know the dividend yield on offer. At current levels, it stands at a modest 1.5%. This is where I feel the stock could be underrated. This is because the business has a healthy balance sheet with lots of cash that I would expect to be returned to shareholders as it continues its impressive performance and growth trajectory.

Finally, pent-up demand post-pandemic should serve 4imprint well and boost performance and returns, in my opinion. In a recent trading update, it said that customer demand is at record highs, which it should be able to leverage into trading momentum and reach a sales target of $1bn for the current fiscal year.

Overall, I believe 4imprint Group is a passive income stock that should grow its level of returns nicely in the longer term. This fits in nicely with my buy-and-hold approach. A cash-rich balance sheet, the fact it is operating in a burgeoning market and the current dividend on offer boosts my investment case. I plan to add 4imprint shares to my holdings in the coming days!

The two FTSE 250 shares that I’d buy today both have market capitalisations of around £1bn today.

A FTSE 250 top pick

First, I’m looking at Moneysupermarket.com (LSE:MONY). This comparison website business looks attractive in the middle of a cost-of-living crisis. As food and energy bills continue to rise, I’d expect households to put a greater focus on cutting costs and saving money.

That bodes well for Moneysupermarket, in my opinion. Last year, it helped its users to save an estimated £1.6bn of their household bills.

It recently reported a good trading performance with earnings up by 10% in the six months to 30 June. This was driven by a jump in sales for its travel insurance products, following a return to more holidays and trips post-covid.

Bear in mind that an economic recession could impact demand for travel next year. More money going towards bills could mean less money available for holidays.

Also, the energy comparison market has been closed in recent months and the company expects that to be the case for the rest of the year.

Impressive metrics

That said, its strategy of buying smaller websites and efficiently integrating them into the brand looks promising. Last year it made several acquisitions including leading cashback site Quidco.

Overall, I reckon it’s a quality business with a return on capital employed of over 25% and profit margin of over 20%. It even pays a market-leading 6% dividend.

Its share price has fallen by 15% over the past year along with the rest of the market. But I reckon it could be a great opportunity to buy these quality shares for my Stocks and Shares ISA today, in preparation for the next bull market.

Printing dollars

My next FTSE 250 top pick that I reckon could double over the coming years is 4imprint (LSE:FOUR). Like Moneysupermarket, 4imprint is a profitable company. But that’s where the similarities end.

4imprint is a marketer of promotional products, mainly in the US. Businesses and organisations buy its pens, bags and other products to use for marketing campaigns.

What’s so special about this business? Sales and profits have doubled over the past five years. Stellar performance has seen its share price grow by 30% a year over the past decade. That’s enough to turn a £2,000 investment into a whopping £27,500. Impressive.

More recently, it reported that customer demand is at record levels and trading momentum remains strong. As such, it should reach its long-standing sales target of $1bn this year.

Bouncing back

Profits took a hit during the pandemic but it has since experienced a bounce-back. That said, an economic slowdown could affect sales over the coming months. The US central bank has embarked on a journey of higher interest rates to tackle surging inflation. That typically leads to higher business costs, potentially leaving less investment for promotional activities.

Overall though, this company looks well-managed and has a good track record over many years. I’d certainly be happy to buy some shares today.

It might not be plain sailing over at Wincanton (LSE: WIN) as the economy cools and fuel costs soar (diesel hit a new record above 178p this week).

But I believe the opportunities for the distribution giant are good enough to overlook the issues as e-commerce grows. Latest financials showed ‘eFulfilment’ revenues up 56% in the 12 months to March. And Wincanton said that “the medium-term outlook for online eFulfilment remains strong” last month too.

The stock’s acquisition of Cygnia last autumn has boosted its ability to capitalise on the online shopping boom as well. Internet sales have been booming following the pandemic and Britain had the highest rate of e-commerce penetration worldwide last year according to Mastercard.

Today Wincanton trades on a price-to-earnings (P/E) ratio of just 9.8 times.

Growing market share

Marketing merchandise business 4Imprint Group (LSE: FOUR) faces near-term turbulence as consumer confidence in the US weakens. The business sources almost all profits from North America.

Consumer confidence in the States has sunk to 11-year lows, data this week showed. The mood threatens to get worse as inflation rises too, threatening company spending on marketing.

However, as a long-term investor I’m still excited by 4Imprint’s investment case. The stock makes mugs, umbrellas, T-shirts, pens and an assortment of other objects on which firms put their company or product name.

This is a market that’s growing rapidly due to its better cost-effectiveness versus traditional advertising. And it’s one in which 4Imprint is growing market share from a very low base. McKinsey & Company puts its share at just low-single-digit percentages.

Most recent financials showed 4Imprint’s orders in North America up 11% between January and April versus the same 2019 period. Right now this cheap UK share trades on a forward price-to-earnings growth (PEG) ratio of 0.6.

Motoring on

I think Motorpoint Group (LSE: MOTR) shares could be a wise investment as the shortage of new cars in the UK worsens.

Huge supply problems concerning components like semiconductors are hitting auto production hard. A knock-on effect is that demand for pre-owned vehicles is surging, an industry Motorpoint specialises in. The problem is getting worse amid a Covid-19 resurgence in China, meaning the prices Motorpoint and its competitors are charging continue to rise.

Latest data from the Society of Motor Manufacturers and Traders showed used car sales rose 5.1% in the first quarter of 2022. Motorpoint is growing the number of branches it operates to make the most of this opportunity and deliver long-term profits growth. In the six months to March alone the company opened three new sites.

Today Motorpoint trades on a forward PEG ratio of just 0.1. Despite the intense competition it faces I think it could be too cheap for me to miss.

Making an impression

4imprint Group’s (LSE: FOUR) a great way to ride the continued rebound in marketing spending in my opinion. The business generates almost all of its profits by making and selling promotional products in the US. You know the sort: mugs, pens, USB dongles, bags and the like. This is a steadily-growing industry in which 4Imprint has been relentlessly grabbing market share.

City analysts believe earnings will rise 46% year-on-year in 2022. This leaves it trading on a PEG ratio of 0.7, a decent distance below that benchmark of 1 that suggests a stock could be undervalued. Orders at the business are bouncing back strongly and the total tally for 2021 recovered to an impressive 90% of pre-pandemic levels. Pre-tax profits came in towards the upper end of expectations for the full year, too, a good omen for the new year.

4Imprint could encounter problems if the US economy begins to stutter, however. A surprise drop in non-farm jobs in January — the first drop since the end of 2020 — certainly caught my eye this week. But as things stand I think there’s more to be encouraged about than worried by at 4Imprint.

A mega-cheap leisure stock

Now that Covid-19 lockdowns have ended, Britain’s ten-pin bowling craze of recent years has exploded again. Ten Entertainment Group (LSE: TEG), which operates almost 50 bowling centres across the UK, is a cheap stock that’s obviously well placed to play this boom.

Ten Entertainment’s sales soared an astonishing 32.4% between 1 May and Boxing Day from pre-pandemic levels. The leisure stock’s January trading update also showed the business had record profits each month since June 2021. Given this evidence it’s perhaps no surprise that City analysts think profits here will soar 260%+ in 2022.

Encouragingly Ten Entertainment is adding venues to maximise its revenues opportunities too. It plans to open four new bowling centres this year alone. The ongoing public health emergency poses an obvious risk as further social restrictions could transpire at short notice. But I think the company’s cheapness reflects this possibility. Ten Entertainment carries a forward PEG of just 0.1.

In the fast lane

I also think Wincanton (LSE: WIN) has a bright future as e-commerce steadily grows. The transport titan offers a range of end-to-end fulfilment services that enable retailers and manufacturers to reach their customers. And it continues to do a roaring trade despite the end of coronavirus lockdowns on physical retail; revenues in its Digital and eFulfilment operation surged 51% year-on-year in the three months to December.

My chief concern for Wincanton is a chronic shortage of van and lorry drivers. This has the potential to cause operational disruptions and push up costs. Still, City forecasters don’t think this will derail near-term earnings growth (an 18% profits rise is predicted for this fiscal year to March 2022. A 9% increase is anticipated for financial 2023 too). I think Wincanton’s forward PEG ratio of 0.6 could make it too cheap for me to miss.

UK shares for growth 

4imprint (LSE: FOUR) is a direct marketer of promotional products. These are the promotional products companies give to their clients, such as branded pens, water bottles and T-shirts. 

This market might not seem all that exciting, but it is big business. 4imprint has multiplied over the past five years, capitalising on its position in the market and re-investing for growth. Sales nearly doubled between 2016 and 2020, although they fell 50% when the pandemic hit. 

Going forward, sales could remain under pressure if events and marketing activity does not return to pre-pandemic levels. This is probably the most considerable risk to the group’s growth right now. 

Despite this potential headwind, City analysts think the company’s earnings could rebound to pre-pandemic levels by 2023. From there, the group will be able to build on its position to expand its footprint further, suggesting its outlook will only improve over the next few years. 

Near collapse

If 4imprint struggled during the pandemic, On The Beach (LSE: OTB) had a near-death experience. The company has been haemorrhaging money for the past two years, relying on investors to keep the lights on. 

With the international travel market beginning to reopen, it looks as if the outlook for the business is starting to improve. City analysts believe the business will return to profit in its current financial year and build on this growth in fiscal 2023. 

Of course, there is no guarantee this growth will materialise. Challenges the corporation will face include additional coronavirus-induced restrictions and the rising cost of living. Higher prices could also lead to a delay in spending. 

Still, even considering these headwinds, I think the company’s outlook will improve significantly over the next two years. That is why I would add it to my portfolio of UK shares with growth potential. 

Charging ahead

As the two firms above struggling with the pandemic, Bloomsbury Publishing (LSE: BMY) knocked it out of the park. Profits have increased by around 50% since 2020 as the demand for books has surged. 

The company is planning to build on this growth in the years ahead. It is using its pandemic windfall to fund new growth initiatives, such as its online learning platform. It is also continually hunting for new authors to add to its catalogue of books. 

This is a bit of a hit and miss process. The enterprise’s most successful association has been the Harry Potter franchise, but there is no guarantee it will find another blockbuster. A string of poor decisions could leave the company struggling with declining sales and profits. 

Even considering this challenge, I am excited by the group’s prospects. It has a cash-rich balance sheet with no debt and supports a dividend yield of 2.8%. Considering these qualities, I think this is one of the best UK shares to own now. 

As we begin 2022, I am looking for new stocks to add to this portfolio. And there are a couple of corporations that have recently caught my attention. I would buy all of the company’s outlined below for my portfolio.

UK shares for income

The first on my list is the infrastructure investment group 3i Infrastructure (LSE: 3IN). This company owns a portfolio of infrastructure assets around the world. This is a great asset to hold as an income investment because related contracts are usually multi-year and inflation-linked. This gives the enterprise a high level of visibility over future cash flows. 

These qualities, as well as the company’s progress in seeking out new investments, have helped it increase its dividend at a compound annual rate of 6% over the past six years. 

Of course, past performance is no guarantee of future potential. But considering the company’s attractive qualities, I think there is a high chance this growth could continue. At the time of writing, this stock offers a dividend yield of 2.9%.

Issues the group could encounter include higher interest rates. These could lead to higher costs, reducing the amount of cash available for distribution to investors. 

Passive income growth

Also on my list is 4imprint (LSE: FOUR), which designs and manufactures promotional marketing material. Unfortunately, this has been a complicated business over the past two years.

During the pandemic, companies have been forced to greatly reduce the number of face-to-face marketing activities. Consequently, the demand for promotional products has declined. Revenues dropped from $861m in fiscal 2020 to $560m in fiscal 2021. 

However, a rapid recovery is expected over the next two years. City analysts have pencilled in revenues of $904m for the 2023 financial year. Profits are also expected to rebound, and so is the firm’s dividend. 

Analysts believe the stock will yield 1.5% next year. That might not seem like much, but 4imprint’s balance sheet is stuffed full of cash, and there is plenty of headroom for further growth in the years ahead. This potential is the main reason I like the look of the company for my passive income portfolio. 

Challenges it could face going forward include competition and additional pandemic restrictions. These headwinds could curb growth. 

Income from property

One of the top UK shares for passive income, in my opinion, is Big Yellow (LSE: BYG). Thanks to its steady profit growth, this self-storage company has become an income champion over the past decade. As management has reinvested profits back into the business, it has grown rapidly, with book value up more than 100% since 2016. 

As Big Yellow’s property portfolio has expanded, the organisation’s income generation has increased. Management has been able to hike the firm’s dividend to investors by 100% since 2016. The stock currently yields 2.3%. And with further development opportunities planned over the next couple of years, it seems likely this payout will continue to grow as it grows. 

Some notable challenges the group may encounter as we advance include higher interest rates, as it relies on debt to fund expansion initiatives. Higher rates could lead to increased interest costs, reducing the amount of cash available for distribution. 

International expansion

Some of the best UK shares for income, in my opinion, are international growth stocks. HSBC (LSE: HSBA) is one of the best examples. 

The Asia-focused bank is one of the world’s largest banks, and as interest rates begin to increase, I think it has fantastic potential for the next few years. As the global economy also begins to recover from the pandemic, the group should have plenty of opportunities to expand its footprint and increase lending to customers. 

These twin tailwinds may help the business’s bottom line expand rapidly in the years ahead. And HSBC has always been one of the best UK shares for income, which suggests that, as the group’s bottom-line grows, it could increase the dividend to investors. 

At the time of writing, the stock offers a dividend yield of 3.6%. City analysts are expecting payout growth of 20% in 2022, implying the shares could yield 4.3% next year. As well as this income potential, HSBC has also been returning cash to investors by repurchasing shares. These are the reasons why I think the stock is one of the best passive income shares to buy. 

Unfortunately, the company’s growth is far from guaranteed in the years ahead. Risks it could face include further pandemic restrictions and a deterioration in relations between China and the United States, which may hit global trade flows. 

UK shares for income and growth

Moneysupermarket.com (LSE: MONY) is one of my top UK shares for passive income generation and earnings growth. It also looks incredibly cheap at current levels. 

The company, which operates online comparison sites, is currently selling at a forward price-to-earnings (P/E) multiple of just 15. This reflects uncertain market sentiment towards the business. Regulatory changes have hurt the outlook for the comparison market, and it is unclear how much of an impact these changes will have on the corporation’s bottom line. 

Still, I am happy to look past these headwinds and buy the stock. As well as the cheap valuation, the stock also supports a dividend yield of 5.1%. It has a cash-rich balance sheet and robust profit margins, suggesting it can sustain a higher than average dividend yield. 

As well as this income potential, there is also scope for a valuation re-rating. This could provide both income and capital growth in my portfolio of UK shares. 

Printer in peril?

City analysts think De La Rue’s (LSE: DLAR) annual earnings will rebound more than 300% in the financial year to March 2022. This leaves the business trading on a low forward price-to-earnings (P/E) ratio of 12 times. It’s plenty cheap on paper, then. But I’m still not tempted to invest my hard-earned cash in this UK share.

The company’s share price has risen 13% during the past year but I expect the money printer to resume its downtrend again soon as the use of physical cash steadily declines. This UK share has lost around 60% of its value during the past five years.

Fresh consumer payments data from UK Finance illustrate De La Rue’s problems perfectly. This shows that the number of contactless payments on these shores rose 12% in 2020 to 9.6bn. Obviously contamination fears following the Covid-19 outbreak caused people to stop handling metal and paper money. But the switch to cards and contactless was rising strongly even before the pandemic. Contactless now accounts for 27% of all transactions versus just 7% four years ago.

Efforts to develop its authentication business could reap large rewards in its own right in the years ahead. But I fear this won’t be enough to offset the steady erosion of the UK small-cap share’s money manufacturing arm and especially in the post-coronavirus era. Remember that woes concerning its banknote printing business prompted De La Rue to warn that it could struggle to remain in business less than two years ago.

A better UK share to buy

I’d much rather buy 4Imprint Group (LSE: FOUR) shares for my Stocks and Shares ISA. City analysts think annual earnings here will boom 288% in 2021, leaving the UK share trading on a forward price-to-earnings growth (PEG) multiple of 0.2.

4Imprint’s share price has rose a less-impressive 6% during the past 12 months. But I think the company — which makes products that companies emblazon their logos over (think mugs, T-shirts and pencils) — is in much better shape than De La Rue to continue rising. Latest financials in May showed that “momentum in the business has built substantially” following coronavirus-hit 2020.

4Imprint’s strong performance is perhaps no surprise. History shows us that companies tend to supercharge the amount they spend on marketing activities as soon as economic conditions improve. But this isn’t the only reason why this particular UK share is thriving. It’s also grabbing market share in a highly-fragmented sector at an encouraging rate.

It’s true that earnings at 4Imprint could disappoint on the back of rocketing inflation. This is because the Federal Reserve could be forced to step in and raise rates, hitting the economic rebound in the UK share’s core US marketplace. Still, at current prices, I still think the product maker could be too cheap to miss and I’d happily buy it for my shares portfolio.

I favour this index over its blue-chip peer because smaller businesses, which make up the FTSE 250, tend to grow faster than their larger peers.

Of course, there are many reasons why one business can grow faster than another, but one of the main reasons why smaller companies tend to grow more quickly is the law of large numbers.

For example, a company that generates sales of £100bn would have to find an additional £20bn of revenues to grow 20%. By comparison, a corporation with sales of just £200m would only need to increase revenues by £40m to grow 20%. 

That said, investing in small businesses might not be suitable for all investors. Smaller companies tend to be riskier than blue-chips. As such, some might feel more comfortable sticking to stocks located in the FTSE 100. 

Nevertheless, I’m comfortable with the risks involved with buying FTSE 250 stocks, which is why I’d buy 4Imprint (LSE: FOUR). 

FTSE 250 growth stock 

4Imprint is a direct marketer of promotional products, such as bags and pens. Companies usually give these out at events, such as conferences or annual general meetings. 

As these events have moved online over the past 12 months, 4Imprint’s sales have plunged, but a recovery is now starting to take shape. 

According to its latest trading update, total order intake in January and February was running at 65% of 2019 levels. However, the figure increased to 80% of 2019 levels in April. And, in the first few weeks of May, sales rose to 85% of 2019 levels. 

This seems to suggest the FTSE 250 group is on track to recover the sales it lost last year at some point in the next two or three months. From there, I believe the business will return to growth, compared to 2019 levels of trade. 

4Imprint has a strong balance sheet to support this growth. At the end of April, the company reported a net cash balance of $44m. That was compared to $39.8m at the end of 2020.

So not only are the company’s sales recovering, but it looks as if the business is also profitable and generating cash. 

Unique opportunity

Considering the company’s recovery and growth potential over the next six months, I’d buy the stock for my portfolio today.

With its cash-rich solid balance sheet, 4Imprint has the financial headroom to invest in marketing to drive growth and expand into new markets. This could provide an additional tailwind to the group’s organic recovery. 

That said, 4Imprint could encounter further turbulence in the months ahead. Another coronavirus wave may force governments to rethink reopening plans. This may reduce demand for its products. There’s also a chance inflation could eat away at the company’s profit margins if it can’t pass higher costs on to buyers. 

Still, I’m confident in the FTSE 250 company’s potential. That’s why I’d buy the stock for my portfolio as a recovery play in 2021.