The FTSE 250 is up 5.1% yr so far and seven% over the previous 12 months. So it could be crawling again to some type of type after a tough few years.

Right here, I’ll take a look at a mid-cap inventory that I reckon has the potential to outperform the FTSE 250 in future. As such, I feel it’s price investigating as a possible portfolio addition for buyers.

Animal genetics specialist

Genus (LSE: GNS) is up 30% in 2025, so has already began a comeback. But shares of the animal genetics agency stay 66% decrease than in September 2021.

The corporate helps farmers breed pigs and cows with superior genetic traits. These animals then develop quicker, keep more healthy, and produce extra meat or milk. 

Genus operates by way of two primary divisions: one centered on pig genetics (PIC), and the opposite enhancing cattle herds (ABS).

A lot of the agency’s troubles in recent times may be traced to China, which was as soon as a promising development marketplace for PIC. Nevertheless, the Chinese language pork market has been unstable, with weak pig costs inflicting persistent underperformance.

In its interim outcomes for the six months to 31 December, Genus stated it had loved a “more stable trading environment” in China. It notched up seven new royalty buyer wins there, bringing the entire to twenty signed over the previous 18 months. There was additionally robust development within the Americas and wider Asia area. 

Consequently, pre-tax revenue got here in above expectations at £35.4m, a 21% improve (or 38% improve in fixed foreign money). Adjusted earnings per share jumped 20%.

Gene-edited pigs

A very powerful catalyst for long-term development comes from a current US regulatory approval for its gene-edited pig programme. These pigs are immune to PRRS (Porcine Reproductive and Respiratory Syndrome), a nasty viral illness that places vital monetary pressure on pig farmers worldwide.

For Genus, this opens up a significant new business alternative. It might license this PRRS-resistant trait worldwide, enhancing the worldwide pork trade whereas producing a profitable new income stream.

Nevertheless, to completely unlock the expansion potential, regulatory approval might be wanted in China. That is the world’s largest pork shopper and producer by far, so commercialising gene-edited pigs there could be a significant breakthrough.

Genus is working with Chinese language authorities to get approval, however the regulatory course of is understandably cautious when it pertains to the meals chain. If China doesn’t give the nod, that might be a giant blow.

One other potential danger could be an escalation within the world commerce struggle. Ideally, US pork producers want frictionless commerce between America and key export markets like Mexico, Canada and Japan. So excessive reciprocal tariffs could be a significant problem.  

Nonetheless, this gene-edited pig programme may very well be an enormous development alternative, beginning in 2026/27. Genus has already secured approval in Brazil, Colombia, and the Dominican Republic, and the important thing US approval ought to fast-track extra inexperienced lights worldwide.

Valuation

Based mostly on present forecasts for its fiscal 2026 yr, which begins in July, the inventory is buying and selling on a ahead price-to-earnings (P/E) ratio of twenty-two.8.

It is a premium to the FTSE 250, however I feel it could transform low cost, assuming the gene-edited pig programme is efficiently commercialised worldwide.

Long term, Genus is well-positioned for development because of the rising demand for animal protein, pushed by world inhabitants development.