Are these the best FTSE 250 shares to watch in spring 2025?

In 2025, the UK’s economy is expected to grow, with GDP anticipated to increase by 1.6%.

Throughout the next year, the Bank of England (BoE) is likely to continue cutting interest rates. At its next meeting on 20 March, rates are expected to be held at 4.5%, with further cuts expected in the latter half of the year.

Although this may seem like a strange decision after inflation rose from 2.5% to 3% in January, economic growth remains slow and rate cuts may help stimulate the economy. If however, inflation continues to creep up, future cuts will be more gradual.

Factors including the uncertainty surrounding trading agreements with the US, potential changes to the planning system for housing and development and the new budget will also impact the UK economy over the next year.

This all makes considering the best FTSE 250 shares to watch next month somewhat of a challenge.

For perspective, the index has remained essentially flat for the past year, reflecting this ambiguity. Last March the FTSE 250 started out at 19,770, rose sharply to 21,600 points in August 2024 and is now at 19,834 points.

When there’s uncertainty, there’s also often opportunity. But this isn’t without risk and of course, past performance is not an indicator of future returns.

Open an account and start trading the best FTSE 250 shares today.

Best FTSE 250 Shares to buy now

QinetiQ Group

UK based security and defense company QinetiQ Group has two main segments: Global solutions, which develops advanced technology, and EMEA Services which provides support with military and security operations. The company serve a wide range of sectors including aerospace, defense and telecommunications, offering services such as cybersecurity, testing and robotics.

The company reported strong H1 results for FY25 with revenue reaching £946.8 million, up from £883.1 million the year before. Operating profit was also up 7% and the company remain on track to meet its full year guidance and are well positioned for sustainable long-term growth.

QinetiQ Group’s share price has increased 38.96% over the past month and our analysts have given the stock a strong buy rating as future gains are possible.

Chemring Group

Chemring Group is a technology company based in the UK that specialises in security and defense. It has two main areas: Countermeasures & Energetics, which focus on developing defense systems including aircraft protection and missile components, and Sensors & Information which provides threat detection and security consulting services.

In 2024 the company performed well with revenue reaching £510 million, up 8% from the previous year. Underlying operating profit remained stable at £71.1 million. This performance was in line with expectations.

Over the past month, Chemring’s share price has increased 28.28% and our analysts have given the stock a buy position.

Assura

Healthcare real estate investment trust Assura focuses on managing and investing in healthcare buildings across the UK and Ireland. The company provides community healthcare facilities, GP surgeries and property management services such as cost management, leases and refurbishments to the NHS.

As of September 2024, the company’s properties were valued at £3.09 billion. This £25.4 million increase in its valuation was largely due to the acquisition of its new portfolio of private hospitals which has helped offset previous losses caused by the reduction in property prices.

Its portfolio now consists of 625 properties with an average lease of 13 years. Going forward, Assura feel confident that its well positioned for future growth.

Over the past month, the company’s stock has increased by 23.64% and our analysts have it a buy position indicating future growth potential is likely.

Babcock International

Babcock international is a UK-based security, defense and aerospace company who operate across four areas, Marine, Land, Aviation and Nuclear.

The company reported strong H1 results with revenue increasing by 11%, reaching just under £2.5 million and underlying operating profit was up 10%. This was largely driven by growth in its Nuclear and Land parts of the business.

These results are in line with expectations and the defense company remains on track to meet its full year guidance and deliver a mid-single digit revenue.

In the past month, defense stocks have surged following the UK government’s recent decision to increase defense spending and Babcock International’s share price has increased by 15%. Given the uncertain geopolitical climate, future gains seem likely and our analysts have given the stock a strong buy position.

Fidelity China Special Situations

Fidelity China Special Situations is an investment company who focuses on growing capital over the long-term by investing in both listed and unlisted Chinese companies, as well as companies with Chinese interest. Its investments cover sectors such as communication, finance, healthcare and consumer goods.

The company’s PLC’s NAV increased by 16% in H1, but this lagged behind the MSCI China Index which was up 24.5%. During this time period, the company’s best performing investments were PingAn and China Life and stocks such as Alibaba and JD.com performed less well.

Throughout 2024, uncertainties around China’s economy resulted in weak consumer spending. This has since increased as lower interest rates which were introduced in September, but investors remain cautions. The US tariffs on Chinese goods are also a concern.

Despite this, the company remain focused on long-term growth by investing in strong businesses.

Fidelity China Special Situations’ share price has increased by 13.49% in the past month and our analysts have given the stock a strong buy position.

How to trade FTSE 250 shares with us

1. Learn more about FTSE 250 shares
2. Choose whether you want to trade or invest
3. Open an account or practice on a demo account
4. Select your opportunity and manage your risk
5. Place your trade or investment and monitor its position

Investing in shares takes a long-term approach where you look to build wealth over an extended period of time.

Trading takes a shorter term approach where you can benefit from leverage. This is where you place a position far greater than your initial deposit.

For example, with 5:1 leverage, you could open a £5,000 position while only depositing £1,000 as ‘margin’. A 10% market movement could result in a 50% gain or loss on your deposited margin.

This approach is high risk and you can gain or lose more money than you put in.

Best FTSE 250 Shares Summed Up

QinetiQ Group, Chemring Group, Assura, Babcock International and Fidelity China Special Situations could be the five best FTSE 250 shares to buy now. These shares are the top returning FTSE 250 stocks in March.

Remember past performance is not an indicator of future returns.

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*Based on revenue excluding FX (published financial statements, October 2021).