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Even though the FTSE 250 recently hit fresh 52-week highs, it doesn’t mean that all constituents are doing well. In fact, there are a couple of value stocks that are down 13% over the past month. Given the sharp divergence from the index performance, does this represent a buying option or a red flag?
In need of repair
The first company is Crest Nicholson (LSE:CRST). It’s one of the leading property developers in the UK. over the past year, the stock is down 14%.
The property sector in general has endured a tough couple of years, ever since interest rates started to rise and inflation surged. Higher inflation means that it’s a lot more costly to build properties. At the same time, high interest rates makes it harder for people to get a mortgage and afford to buy a property.
A 14% fall in the past year has compounded the 55% drop over a broader three-year period. This is why I flag it up as a value…
