FTSE 250 shares have been caught up in latest inventory market volatility, with the index falling 4% within the final month. Whereas some may even see this as a disgrace, I see it as a shopping for alternative.

I at all times use my very own intel earlier than shopping for any inventory, and would by no means depend on the factitious variety. However I’m additionally curious. So I requested ChatGPT to call two FTSE 250 shares it felt had the flexibility to get well after struggling for a while.

Can Marshalls shares battle again?

Its first choose was UK-based landscaping and constructing merchandise provider Marshalls (LSE: MSHL). It’s definitely been struggling. The shares are down 18% over one yr, and 60% over 5.

My first thought is that it’s been struggling a bit an excessive amount of for my liking. But it’s undeniably low-cost, with a price-to-earnings (P/E) ratio of simply 7.57.

ChatGPT stated Marshalls has posted “significant growth during previous economic upturns, reaching a market value of £1.5bn”. The associated fee-of-living disaster has inevitably hit it exhausting.

2024 revenues fell 7.7% to £671m, which “reflects lower demand from housebuilders and continued subdued activity in private housing repairs, maintenance and improvements”, based on Marshalls.

The board did minimize web debt by 23% to £134m, and expects adjusted 2024 pre-tax revenue for 2024 to be inside markets expectations of £52m to £53.7m. The trailing yield has climbed to three.38%.

Do I agree with AI? I’m afraid not. Inflation and rates of interest to stay stubbornly excessive, which is able to hit housing market exercise. Marshall has to soak up employer’s nationwide insurance coverage and minimal wage hikes from April. I feel there’s a restoration play right here, simply not but.

Breedon shares are bouncing

ChatGPT’s second choose was in the identical sector, so I assumed it will be topic to the identical challenges. However as a substitute, its shares have been on a tear.

Constructing supplies firm Breedon Group (LSE: BREE) doesn’t match the factors I gave ChatGPT in any respect. Its shares are up 27% over the past yr, and a staggering 545% over 5. It’s a momentum inventory, relatively than a restoration play. ChatGPT responses stay as erratic as ever.

Breedon has “grown significantly over 17 years through strategic acquisitions”, my unreliable robotic buddy tells me. It’s defied the home UK gloom by increasing into the US, buying BMC Enterprises for $300m and Lionmark Building for $238m.

At present, it’s the US inventory market that’s struggling, though Breedon has prevented the latest sell-off. Its share price is up 7% within the final month. But the P/E is a comparatively modest 13.88.

Breedon was boosted by full-year 2024 outcomes, revealed on 5 March, which confirmed underlying EBITDA up 11% to £270m. Nevertheless, volumes fell 6% as a result of weaker UK market (made worse by our dodgy climate).

One other concern is that web debt elevated by £235m to £405m, principally as a result of BMC acquisition. Breedon is a banger, however I wouldn’t name it a restoration inventory. Additionally, I really feel like I’ve missed out on the thrill.

ChatGPT’s picks are a curious brace. They’re at very completely different levels of their development cycles. Each are value contemplating, however I wouldn’t purchase any inventory based mostly on AI’s net trawling. I’ll do my very own research, and see what human beings assume too.