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I’d avoid this FTSE 250 stock in favour of a FTSE 100 income share!

first_imgSimply click below to discover how you can take advantage of this. Our 6 ‘Best Buys Now’ Shares Image source: Getty Images. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. “This Stock Could Be Like Buying Amazon in 1997” I’d avoid this FTSE 250 stock in favour of a FTSE 100 income share! Enter Your Email Address Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge!center_img Kirsteen Mackay | Friday, 22nd May, 2020 | More on: MAB SLA Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Hospitality shares have taken a hit since the UK-wide lockdown created a financial nightmare for the hospitality industry. Does this mean hospitality shares are now cheap enough to make them a good buy? I’m not so sure.Mitchells & Butlers (LSE:MAB) runs around 1,780 managed pubs, bars and restaurants throughout the UK. It has been hard hit by the coronavirus pandemic and Mitchells and Butlers shares are down 66% year-to-date. Last week the FTSE 250 company received a temporary waiver on its loan repayments, extended to 8 June. This inspired confidence and its share price gained 7% on the news.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…The shares have a price-to-earnings ratio below 5. Its earnings per share are 33p and it has a 55% debt ratio. The FTSE 250 company has put over 99% of its employees on furlough and cut pay for its remaining employees and the board.Covid consequencesMitchells & Butlers brands include The Harvester, Toby Carvery, All Bar One and Miller & Carter chains. The hospitality sector is unlikely to restart before July and when it does, things will differ from before. To ensure social distancing measures are in place, it is likely that fewer customers will be permitted to establishments. This could cause prices to go up so that landlords can cover their overheads.But that would mean fewer people will be able to afford to eat or drink out. Some people may also be fearful of going back to pubs and restaurants or to socialise for extended periods. For these reasons, I am not yet feeling bullish towards the hospitality sector.Investing in wealth managementWealth management may not be gearing up for high demand during a recession, but it is a cyclical business that will always have core clients.FTSE 100 wealth management business Standard Life Aberdeen (LSE:SLA) has been minimally impacted thus far by the pandemic. Its staff have transitioned to home working with ease and it has a strong balance sheet that should see it through a stock market downturn. Assets under management and administration at Standard Life Aberdeen were estimated to be approximately £490bn on April 30.The share price is down 32% year-to-date but it is up 29% since the March market crash. There is likely to be further volatility ahead though, so it is not a stock for those with a short-term outlook. However, as a long-term play, I think Standard Life Aberdeen will weather the storm.It will take some time before the extent of the financial impact of the pandemic becomes clear. However, it is unlikely to make positive reading. With the country increasing its debt at an unprecedented pace, the Treasury and the Bank of England will need to seriously consider how debt restructuring can take place. Reviving the economy once the lockdown is over will be paramount and I imagine wealth management firms will play a part in the recovery. Standard Life Aberdeen has a price-to-earnings ratio of 20 and a dividend yield of 9%. I think this yield makes it an attractive share to buy today when so many dividends have been cut or cancelled. See all posts by Kirsteen Mackay I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Kirsteen has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.last_img read more