One FTSE250 the stocks that are doing really well right now are industrial stocks Keller Group (LSE:KLR). It is up about 110% in the past year.

I still think the stock offers value. Right now it looks very inexpensive.

US Success

Keller specializes in preparing land for development. And currently has great success, especially in the United States.

Demand for Keller’s services is high across America right now, as the country spends a lot on infrastructure, onshoring, semiconductor plants, and data centers.

Strong H1 results

This success was reflected in Keller’s latest results for the half-year ended June 30. During this period, the company reported:

• Basic profit growth of 69%
• The basic rate of return on capital employed was 28.4% – the highest level in 15 years
• Free cash flow before interest and taxes up 229%
• Dividend per share raise by 19%

The company also raised its full-year outlook, saying it expects group results to be “much further ahead” market expectations. It noted that the results should be supported by a record order book of £1.6 billion.

Keller delivered an outstanding performance in the first half of the year, setting fresh records across the Group while maintaining and building on the significant improvement in its operational and financial performance achieved in 2023.

CEO Michael Speakman

Low valuation

Since these results, City analysts have naturally raised their profit forecasts for Keller. We could see more growth in the coming weeks and months.

However, the current consensus earnings per share forecast for 2024 is 183p. That means that at today’s share price of 1,610p, the stock has a price-to-earnings (P/E) ratio of just 8.8.

That’s a low valuation. By comparison, the median P/E ratio for the FTSE 250 is currently 13.4. So Keller is trading at a massive discount to the index.

It’s worth noting that analysts have recently raised their price targets for the stock. For example, on September 6, analysts at Berenberg raised their price target from 1,750p to 1,900p. That’s about 18% above the current share price.

Nice dividend

However, the potential share price gains aren’t the only attraction of this stock. It also offers a decent dividend. The company paid 45.2p per share in dividends in 2023. This year, it expects to raise its payout by 5%. That would take the distribution to 47.5p. At today’s share price, that translates to a yield of just under 3%.

Worth watching?

It’s worth noting that Keller operates in a cyclical industry. And a downturn in the industry is a risk that can’t be ignored. Another risk is taking profits in the tiny term. After all, the stock has been doing very well recently.

All things considered, I think this stock is attractive. I think it’s worth considering today, especially for those looking to diversify away from technology into other areas of the market.