2 of my favorite FTSE 250 stocks for October!

In recent years, economic and political uncertainty in the UK has hurt demand FTSE250 shares. So, although the UK’s second most prestigious stock index remains loaded with cheap shares since the start of the year.

Investors have several tools at their disposal to find bargain stocks. Two commonly used metrics are the price-to-earnings ratio (P/E) and dividend yield, which can be used to evaluate the value of a stock relative to its growth and earnings prospects.

Using these metrics, I believe these two FTSE 250 stocks are worth serious consideration by value investors this month.

Renewable Infrastructure Group (TRIG)

Renewable Infrastructure Group (LSE:TRIG) is a stock I already have in my portfolio. And honestly, it turned out to be a disappointing investment for me due to the unfavorable interest rate environment.

As rates rise, real estate company profits come under pressure. Net asset value (NAV) falls and the cost of servicing high debt tends to rise.

The green energy producer has not yet emerged from the crisis. A sudden increase in inflation may change the Bank of England’s appetite for periodic interest rate cuts in the future.

However, I still think now might be a good time to consider purchasing. I’m certainly attracted to TRIG’s cheapness relative to its asset value. According to Hargreaves Lansdownthe company is trading at an almost 18% discount to NAV per share.

The company also provides a dividend yield of 7.3% for 2024, more than double the FTSE 250 average of 3.3%.

This is a share I plan to keep for the long term. I expect earnings (and therefore dividends) to continue to increase over time as demand for clean energy increases. TRIG’s broad European footprint and exposure to multiple types of renewable energy helps me spread risk effectively.

Hochschild Mining

Hochschild Mining(LSE:HOC) is another FTSE 250 opportunity worth taking a closer look at in October.

It may not offer as impressive a dividend yield as TRIG. In fact, it amounts to a useful, if unspectacular, 0.9% in 2024.

However, in my book, the gold and silver producer’s P/E of 8.8 times means it’s a bargain.

Hochschild shares soar in 2024 as precious metal prices rise. I don’t think it’s done yet either, given the good prospects for these expensive commodities.

The value of gold and silver should also benefit from lower interest rates and, therefore, profits from mining companies. Interest rate cuts contribute to intensifying inflationary pressure.

Concerns about the U.S. and Chinese economies, combined with escalating conflicts in the Middle East and Eastern Europe, may also contribute to price increases.

As a major silver producer, Hochschild could also benefit from rising industrial demand if the global economy enters a growth phase.

Possible production problems at mines in the Americas pose risks that could impact profits. However, I still believe that the potential benefits of owning Hochschild stock may outweigh the risks. And especially if the company becomes a takeover target, such as a FTSE 250 peer Centamine.