2 FTSE 250 stocks I’d buy before the next stock market boom

When in FTSE 100 hit a record high this month, another UK-focused one FTSE 250 it is still about 20% below its previous peak. So, what better time to hunt for a second rate recovery before the big recovery (hopefully that doesn’t happen)?

Here are two I especially like.

Green tops

As a holder of shares in the FTSE 250-listed company price comparison Moneysupermarket.com (LSE: MONY) has, I can’t pretend the past few years have been fun.

However, the new form has been more encouraging. In fact, the stock has risen a little over 17% in the short 2023 so far.

Well, some of this may be due to the Bank of England’s optimism that the UK recession will be shorter and less severe than thought (if it ever happens). A rising tide lifts all boats, like.

But I think this will be a bit harsh on website operators. It is clear that the cost-of-living crisis has pushed more people to look for better deals on services like broadband and insurance. Indeed, revenue in Moneysupermarket’s travel insurance segment was almost 50% higher last year than in pre-pandemic 2019.

I think this momentum will continue, especially if the energy market becomes more competitive and people can finally switch providers.

Big dividends

Clearly, the economic cloud will take some time to dissipate.

However, a valuation of 15 times forecast earnings is still reasonable for me, especially if the income stream is considered.

Moneysupermarket maintained, instead of increasing, the total payout for 2022. While this may have disappointed some investors, I think it is actually quite wise given the current uncertainty.

Even if there is no increase in 2023, the stock will still yield 5.1% at the current share price. For comparison, the FTSE 250 index returned ‘just’ 3.1%.

Is the extra risk worth it? I think. Indeed, I can increase my current position if funds are available.

Buy before the boom?

Another second-tier stock that I think is an excellent buy today is the Newcastle-based housebuilder Bellway (LSE: WHO).

This may seem strange considering how the sector will fare at the end of 2022 as mortgage rates climb higher and demand from potential buyers falls.

However, I think a lot of bad news has been priced in. Bellway shares changed hands at a price-to-earnings (P/E) ratio of just six. A forecast of 5.6% dividend yield, easily covered by the expected profit, is another attraction.

Patience is required

Now, I don’t know how the property market will be in 2023. Clearly, rising unemployment won’t help. On the flip side, this can be a catalyst for interest rates to be pushed lower.

We’ll get an idea of ​​how trading is (or isn’t bad) at Bellway when the company announces its half-year numbers at the end of March. Of course, management’s comments on the outlook will be closely scrutinized.

However, as a Foolish investor, I know that there is no point in worrying about things that are beyond our control. Better to concentrate on buying stocks with great long-term potential. I think that is because there is a need for housing in the UK.

Again, I’d be happy to buy it now with my spare cash.