Value in FTSE250 should not be overlooked. The index has outperformed all other UK indexes over the last 20 years. From the main leader FTSE100 to the small one FTSE Small Capthe 250 is the clear winner across the board.

But with the total value of its offerings so high, is there still value in investing in it?

Pros and cons

Investing in the UK’s second largest index has its advantages and disadvantages. Due to the smaller market capitalization of the quotations, there is a greater risk of volatility. And with less exposure to international markets, they are at the whim of the local economy. This makes the 250 riskier in times of economic uncertainty.

But it also brings benefits.

Emerging technology stocks can kill. Take an online review site Trust the pilot — has been falling recently, rising 166% last year. Or Individualthe upcoming pharmaceutical giant from which it spun off Reckitt in the 1990s – an raise of 485% in five years!

But while these shareholders celebrate, I’m more interested in stocks that are severely undervalued. One that I think could grow 500% over the next few years.

Curry

What’s the employ of all this up-to-date, disruptive technology if there are no stores to sell it, right? Despite a modest market capitalization of £867m, Curry (LSE:CURY) is one of the UK’s best-known high street electronics retailers. However, the growing popularity of online shopping caused profits to soar in the slow 2010s. Between 2016 and 2020, the company’s shares lost over 70% of their value – and much of that happened BEFORE Covid!

But now it looks like the stock is soaring again.

Since hitting a 15-year low of 43p slow last year, the stock has risen an impressive 75%. And they are still a long way off the company’s dizzying record of 500p. So will rising foot traffic on the UK’s high street turn around the struggling retailer’s fortunes?

I think so.

There is no denying that online shopping is the future. But there is still room for physical stores. I never buy clothes online and I like to feel up-to-date in my hands before purchasing. Currys recently conducted research that found that online shoppers often buy the wrong or inappropriate products. Therefore, almost half of consumers prefer to get guidance from store staff before making a purchase.

This trend is reflected in its own e-commerce platform. Online sales saw a significant raise during the lockdown but have since returned to pre-pandemic levels. With foot traffic increasing, Currys returned to profit last year and profits are expected to continue to grow.

Based on estimates of future cash flows, the stock could be undervalued by 60%.

Still, there are risks.

Earlier this year, Currys rejected two takeover bids from US investment firm Elliott and a third from Chinese e-commerce giant JD.com. At the time, interest rate cuts seemed inevitable and the economy looked forceful. But now the situation is less certain. If the company fails to deliver results now, shareholders could signal their dissatisfaction with the rejection of the projects.

For now, it’s holding forceful. If it continues to deliver forceful performance, I think it could regain its pre-pandemic highs of around 400p over the next 10 years, which would be an raise of 500%. That’s why stocks are at the top of my shopping list for July.