I’d aim to build a FTSE 250 portfolio starting with these 5 stocks

The UK FTSE 250 the mid-cap company index has recovered along with the rest of the market since its lowest in October 2022. And I think many stocks look attractive now.

For me, the index has a greater emphasis than the larger one FTSE 100 index. Indeed, many of its 250 or so constituents are generating revenue faster than mature Footsie businesses. And along with faster growth, FTSE 250 companies tend to have higher valuations.

But if the mid-cap company’s trajectory is up, I like to see richer valuations as a sign of quality. And, in most cases, I don’t believe that a higher rating reduces a stock’s potential to generate long-term portfolio returns that are beneficial to me.

Stocks on my watch list

I am fully invested now. But if I have spare cash to invest I would consider building a long-term portfolio with 10 FTSE 250 shares.

The first is I.M.I, a company engineering and manufacturing products to control fluid movement. The directors delivered a strong trading update in November 2022 with a positive outlook statement.

We’ll find out more about our latest operational progress with our full-year results report on 3 March.

Meanwhile, I will also consider the fast-moving consumer goods business PZ Cussons. Last September’s full-year report contained a competent set of figures and an optimistic outlook statement. The half-yearly report is due on February 8th and I will be looking for it with interest.

But I also wanted to Hill & Smith. The business provides galvanizing, steel, composites, and other products and services serving industrial and infrastructure projects.

On January 25, the company released a strong trading statement saying operating profit was ahead of analyst expectations. And we can find out more about the full year’s results due on March 8.

Potential catalyst for growth

In the meantime, I’m tempted by fantasy miniature figures and game makers Game Workshop. The company has a strong multi-year trading record and financial figures.

And in December 2022 announced an agreement in principle with Amazon to develop Games Workshop’s intellectual property for film and television production. Also, for Games Workshop to grant related trading rights to Amazon.

I hope that the situation can lead to increased revenue and profit in the coming year, although positive results are not guaranteed.

Finally, I will explore the possibility of increasing it DiscoverIE to my portfolio. The company designs and manufactures custom electronics for industrial applications.

On January 25, the third quarter trading update was reported “Good trading momentum”. And the company also recently completed the acquisition of a company called Magnasphere. The move aims to strengthen its footprint in the US.

All five of these stocks look interesting to me right now. However, there is no guarantee that something will result in long-term profits for shareholders just because I like it. Indeed, operational setbacks can affect any business at any time.

Also, I wouldn’t buy anything without first diving in with more in-depth research. However, the shares are very high on the FTSE 250 watchlist and I keep an eye on them.