FTSE 250 shares round-up: two stocks heading higher

A quadrupled Hochschild Mining (LSE:HOC) dividend and Applied Nutrition (LSE:APN) earnings cheer today ranked among the highlights as the FTSE 250 index edged closer to a record close above 25,000.

The mid-cap benchmark rose 82 points to an intraday 24,938, having last night chalked up an all-time high of 24,856.05 thanks to the support of Vistry Group (LSE:VTY), Taylor Wimpey (LSE:TW.) and other builders.

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Hochschild surged to the top of today’s risers board, meaning that shares have jumped by 57% so far in August as the miner continues to benefit from gold’s recent price resurgence.

Having slumped from January’s record $5,400 (£3,962) an ounce to below $4,000 in July, bullion is now back at $4,619 after being driven by dollar weakness and revised bets on US interest rate hikes.

UBS Global Wealth Management continues to forecast a return to $5,400 over the next 12 months as it said recent data also pointed to strong demand from investors and central banks.

Hochschild’s half-year results today reaped the benefit as a 47% increase in its average realised gold price and 130% for silver boosted underlying earnings by 119% to $491.5 million.

Gold accounted for 64% and silver 36% of the revenue total of $844.4 million, which rose 62% as Hochschild also noted progress with the turnaround of its Mara Rosa facility in Brazil.

The support of higher commodity prices amid slightly lower production of 151,830 gold equivalent ounces was partially offset by their impact on operating costs.

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These will be above original guidance for the year due to significantly increased export taxes in Argentina, workers’ profit sharing and royalty payments. It has also been hit by the strength of local currencies in its three operating jurisdictions in South America.

However, the stronger commodity prices have meant substantially higher cash generation at its flagship Inmaculada mine in Peru and San Jose mine in southern Argentina and enabled Hochschild to declare an interim dividend of 4 US cents a share.

That matches the previous peak interim dividend paid at the end of 2020 and is a big jump from the one US cent of the previous year, which marked the first half-year award for three years.

Broker Peel Hunt estimates today’s distribution came in at the low end of the company’s policy to pay between 20% and 30% of free cash flow.

The City firm added that Hochschild is “starting to turn the keys to growth” after noting the potential of the company’s Monte Do Carmo gold project in Brazil and Royropata silver project in Peru to lift earnings from 2025’s $584 million to $1.2 billion in 2029.

Peel Hunt said it did not believe this outlook was priced into the shares, which it values at 745p compared with today’s improved level of 674.5p. At under five times forecast 2026 earnings, it said “the opportunity is clear”.

Applied Nutrition shares started today’s session on the front foot and in record territory at 347p after the Liverpool-based company said that earnings for the year to 31 July will be ahead of City expectations at about £43.3 million.

The 40% year-on-year improvement reflected a 50% jump in revenues to £160 million as the sports nutrition, health and wellness brand reaped the benefit of continued strong demand across its markets and channels. Its brands include ABE, BodyFuel, and Endurance.

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Current year earnings and revenues are also on track to beat expectations at £49 million and £205 million respectively, but shares fell back to 325p as investors noted that the margin is set to decrease slightly from 2026 levels.

Applied said this was due to an increased revenue contribution from the US, as well as significantly higher whey protein costs and a greater proportion of sales from whey-based products.

City firm Berenberg, which has a price target of 370p, said: “We remain positive, noting that while some additional revenue streams will be margin dilutive, they should be profitable and cash generative.

“That said, for Applied Nutrition to retain its premium valuation rating, management will need to show that underlying margins remain healthy and stable.”

Applied joined the stock market at a price of 140p in October 2024 and has rallied sharply since trading at 108p in April 2025.

Berenberg said it liked the company for its early stage global growth potential, pointing out that the global sports nutrition, health and wellness market is forecast by Euromonitor to grow at a compound rate of 8.1% to reach £280 billion by 2028.

It added: “Secular trends are driving growth in all major regions. Applied Nutrition has a sub-0.1% global market share, highlighting its long-term potential, as it leverages its scale to compete globally and its speed to market with high-quality, innovative products that meet consumers’ preferences.”