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Weighed by fears over the UK and global economies, the FTSE 250 index of UK shares continues to struggle for momentum. It’s up around 3% in the year to date, but many of its constituents remain under pressure as worries over trade tariffs and mounting geopolitical tensions dent investor appetite.
As a result, many quality stocks continue to trade at rock-bottom prices following around a decade of underperformance. Since 2015, the index has delivered an average annual return of just 4.3%.
This means the FTSE 250 may be a great place for investors to consider going bargain-hunting. Here are two shares I think are worth serious consideration at current prices — over the long term, I think they could deliver impressive shareholder returns.
Target Healthcare REIT
Higher interest rates have weighed on Target Healthcare REIT (LSE:THRL) shares in recent years. With oil and food prices rising again, this may remain a problem for the real estate investment trust (REIT) if inflationary pressures endure.
Yet I believe this threat’s baked into the company’s share price. At 104.6p, it trades at a 12.2% discount to its net asset value (NAV) per share. Combined with a 5.7% forward dividend yield, it offers plenty for value investors to get stuck into.
As a leading care home provider, Target has significant long-term investment potential as Britain’s elderly population rapidly grows. I also like it because it operates in a highly defensive sector, while its inflation-linked contracts help protect earnings during periods of rising costs.
All this makes Target one of the most stable passive income stocks on the FTSE 250, in my opinion. Under REIT rules, it has to dole out 90% of annual profits from its rental operations out in the form of dividends.
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ITV
Traditional broadcasters face an unprecedented battle for viewers as streaming services gain in popularity. While ITV (LSE:ITV) isn’t immune to these pressures, it has a considerable opportunity as the likes of Netflix, Amazon and Disney mine for content.
As well as operating its own channels, ITV has a sprawling production unit thanks to years of global expansion. It’s now reaping the rewards, with external turnover at ITV Studios leaping 20% in the first three months of 2025. This is also thanks to the firm’s reliable conveyor belt of hits like Rivals and Missing You (shown on Disney+ and Netflix respectively).
But it’s not all about ITV Studios, as the broadcaster’s also making impressive inroads with its own streaming service. Total streaming hours at ITVX rose 12% in the first quarter, to 507m. Ongoing investment in programming and technology is helping it to compete effectively with those streaming giants from across the Pond.
ITV shares trade on a forward price-to-earnings (P/E) ratio of 9.8 times, and they carry a 5.8% corresponding dividend yield. Given the cheapness of its shares, I think it could become a takeover target for media companies or private equity firms keen to acquire its valuable production arm. But importantly, it could have a bright future on its own too.
