2 FTSE 250 stocks that could rise under the new Trump presidency

There is no denying that many British companies derive the majority of their revenues from the US. Most, however, are not those on FTSE250. It has a more international character FTSE100 companies that are usually based around the world.

Still, there are a few outliers in the secondary index, and when it comes to growth, their smaller market capitalization works to their advantage. Of course, it is too early to assess which direction the US economy will go under Trump. However, if there is a boom, I think investors should consider these two stocks for their growth potential.

Group 4imprint

Group 4imprint (LSE: FOUR) sells promotional goods such as branded stationery, USB drives, and clothing. Despite being headquartered in London, the 40-year-old company derives 97% of its revenue from the USA. The standout brands include American giants NikeCamelbak and Sharpie.

However, the mail order distribution model carries the risk of service disruptions from third parties. This can be costly and cause reputational damage. Still, the company has enjoyed spectacular success over the past 10 years, with its stock growing at an annual rate of 21.4%.

In its latest earnings update, it expects pre-tax profits of $153 million for full-year 2024, beating expectations. The update, published earlier this week (January 21), also outlines expectations for revenue growth of 3% and 5% growth in existing customer orders. The company’s shares jumped 12% on this news.

Despite its rapid growth, its valuation is still 32% below its fair value based on estimates of future cash flows. Confirming this assessment, analysts’ average 12-month forecast calls for a price 30% above current levels.

Hill and Smith

A company engaged in highway construction Hill and Smith (LSE: HILS) provides engineering solutions and galvanizing services in the USA. Following the passage of the nation’s $1.8 trillion infrastructure bill in 2022, Hill and Smith products are in growing demand.

Since then, the share price has increased by over 100%. Therefore, it is slightly higher than average price to earnings ratio The P/E ratio is 20. Nevertheless, I believe there is still room for growth.

While the company suffered from rising debt pre-Covid, it is declining, although it still outpace cash flow. This leaves the risk of default if profits decline and makes it difficult to cover interest payments.

Recently appointed CEO Rutger Helbing believes that the company “has excellent prospects for further value creation” and it is “high demand for our products and services, especially in the USA.“

It paid shareholders a dividend of 16.5p per share on January 5, an increase of 15% on the previous period. This follows a 20% increase in revenue and a 39% increase in profits. The yield is currently 2.9%.

This could go either way!

While a booming U.S. economy could help both stocks, there is a risk that Trump’s tariffs will make things worse. This is a key risk, alongside the typical risks associated with currency fluctuations and regulatory changes.

Given current valuations, I think the benefits may outweigh the risks. Both of these stocks could go much higher than they are today in the coming years, so I think it’s worth considering both stocks now.