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A couple of FTSE 250 companies are set to release trading updates this week – both on the 10th. One is Greggs (LSE:GRG) and the other is Persimmon (LSE:PSN).
In both cases, I’m going to be watching closely. But my reasons for being interested in each are quite different.
Greggs
Greggs is on the list of stocks I’d like to buy. The stock currently trades at a price-to-earnings (P/E) ratio of just under 20, which is intrinsically fairly high but low compared to its historic levels.
The stock fell 7% when the business reported earnings in August as inflation cut into operating margins. Despite this, revenue and profits still showed what I thought was decent growth.
Since then, though, inflation in the UK has fallen significantly. So I’ll be interested to see how this is affecting the company’s profitability and how far this is an ongoing risk.
In addition, I’ll be looking to see how the firm is…
