Consider These 3 Promising FTSE 250 Stocks for Growth

Investors seeking promising opportunities in the FTSE 250 index should consider three mid-cap stocks that offer potential for growth and income. These selections have been highlighted due to their unique positions in the market and anticipated performance in the coming months.

QinetiQ: Defense Growth Amidst Increased Spending

Driven by escalating defence budgets in Europe, QinetiQ (LSE: QQ) is positioned for robust growth, according to analysts. The firm is projected to achieve an 18% increase in net profit for the financial year ending in March 2026. Currently, QinetiQ is trading at a forward price-to-earnings (P/E) ratio of 15.7, which is notably lower than larger defence companies such as BAE Systems and Rolls-Royce.

The stock’s valuation is further underscored by a low price-to-earnings-to-growth (PEG) ratio of 0.9. Additionally, QinetiQ is expected to increase its annual dividends by 8%, resulting in a dividend yield of approximately 2%.

Despite a recent profit warning in March, which raised concerns about pressures in the US market and uncertainty around Washington’s defence budgets, analysts remain optimistic. The firm’s order intake reached a record £2 billion last year, bolstered by strong ties with the UK Ministry of Defence.

Lion Finance: Strong Performance in Emerging Markets

Another noteworthy contender is Lion Finance (LSE: BGEO), which has emerged as one of the best performers on the FTSE 250 this year. The bank boasts a forward P/E ratio of 5.8 and offers an attractive dividend yield of 4.1%.

Lion Finance’s valuation, lower than many UK banks, reflects its distinct geographic presence. It holds significant operations in Georgia, Armenia, and a smaller footprint in Belarus, areas characterized by ongoing political challenges. Nevertheless, the bank has demonstrated impressive growth, with an operating income increase of 9.5% between January and June, coupled with a 28% rise in profit.

While analysts anticipate an 18% drop in annual earnings per share for 2025, this decline is attributed to exceptional profits from the previous year. Long-term growth is expected to resume, driven by strong economic performance across Lion Finance’s operational regions.

Bankers Investment Trust: A Diversified Approach

For those seeking a more diversified investment, the Bankers Investment Trust (LSE: BNKR) presents a compelling option. With a portfolio of approximately 100 companies spanning various sectors globally, this trust mitigates risk associated with individual stocks or sectors.

Since 2015, Bankers has delivered an average annual return of 11%, significantly outperforming the broader FTSE 250 index. The trust achieves this through a balanced approach of capital gains and consistent dividend income, having increased dividends annually for over 50 years.

Currently, Bankers trades at a 9% discount to its net asset value (NAV) per share, making it a noteworthy consideration for investors looking for growth and income with reduced risk.

As these three stocks illustrate, the FTSE 250 offers diverse opportunities for investors focused on growth and dividends. Each company presents unique strengths that could appeal to those looking to enhance their portfolios.