A Dirt Cheap Stock To Consider

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A Dirt Cheap Stock To Consider

Safestore Holdings: A Dirt Cheap Stock To Consider

According to experts, the FTSE 250 is all set to make some solid growth during the next 5 years. And the one stock from the FTSE 250 which is available at an absolute bargain today is Safestore Holdings.

But why? The UK economy is struggling, as evident from the GDP data. That's why the government is planning to pour 100 billion as an investment into the economy.

Self-Storage Market Is Recovering

This investment will find its way into energy, healthcare, infrastructure, and homebuilding sectors during the next 5 years.

This means the government will invest an amount equal to 3.7% of the UK GDP. In General, an increase in economic growth leads to increased domestic demand. This directly translates to strong gains for stocks like the ones found in the FTSE 250.

According to the UBS, the FTSE 250 is the ideal spot to get some good exposure to the UK's economy. Right now, one stock which is available at a bargain is Safestore Holdings.

Safestore Holdings currently has a market cap of 1.3 billion. The share price of the Safestore Holdings is around 610p while its P/E ratio is 3.6.

The Safestore Holdings is a self-storage operator which is currently going through tough market conditions. The economic conditions and inflation have lowered the demand for self-storage.

This has affected the earnings of the Safestore Holdings, but the recent data shows that things are now changing for the better. The self-storage market of the UK is now showing signs of recovery.

If the recovery continues, it will also find its way to the Safestore Holdings and lead to a turnaround in the share price.

So, based on these developments, experts believe that Safestore Holdings is a good stock to consider buying in 2025. However, its also worth noting that the forecast for a turnaround is based on some IFs.

Nonetheless, the P/E ratio, market cap, and all other indicators show that the Safestore Holdings is a solid stock to consider adding to the portfolio.

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