The FTSE 250 houses smaller-cap UK shares that aren’t quite big enough yet for the FTSE 100. Earlier this week, it rose above 24,000 points for the first time ever, adding 1,987 points since 1 January — a near-9% gain.
That move has not come from the whole index rising evenly. A handful of stocks have done a lot of the heavy lifting, and three names stand out to me: CMC Markets (LSE: CMCX), Raspberry Pi, and Keller Group.
As of 5 August, their share prices were up 128%, 127% and 90% respectively. Looking closer, we see a rally driven by a mix of re-rating, upgrades and stronger trading. The question is, can that momentum last?
CMC Markets: rerating story
CMC Markets has been one of the clearest momentum names in the FTSE 250. Its latest full-year results showed net operating income up 15% to £392.6m, profit before tax up 20% to £101.3m and a full-year dividend of 13.8p, up from 11.4p.
Management also pointed to stronger delivery across the group, including a record year in Australian stockbroking and growing support from partnerships and more diversified revenue streams.
For me, that helps explain the rerating. Investors are no longer viewing the stock as just a trading platform tied to market volatility. They are seeing a broader business with better earnings quality.
The risk though, is obvious: after such a strong run, the valuation now leaves less room for disappointment if trading activity cools.
Raspberry Pi: growth expectations
Raspberry Pi has been a different kind of success story. The share price jumped after the company said first-half profitability would be “materially ahead” of 2025 and lifted its full-year outlook.
Earlier this year, it also reported a better-than-expected 25% rise in annual earnings, helped by stronger demand and higher prices linked to memory costs.
That matters because it shows the market is responding to real earnings upgrades, not just hype. Demand trends, pricing power and optimism around industrial and AI-related use cases have all helped the stock.
Still, this is a share that can move sharply in both directions, because expectations have risen so fast.
Keller Group: steady delivery
Keller Group feels more traditional. Its latest trading update pointed to record half-year revenue and profit, stronger underlying performance and an increased dividend. That makes it look less like a story stock and more like a steady industrial compounder that’s winning support for dependable earnings growth.
I think that’s part of the appeal. Investors often pay up for visible, repeatable progress — especially when the wider market wants quality.
The risk is that construction and geotechnical work can be cyclical, so margins and execution are areas to watch.
What it means for the index
At a rough guess, these three stocks may have started the year with a combined FTSE 250 weight of about 3%-5%. If so, their powerful share price gains could have contributed as much as 17% of the index’s rise this year.
All three are worth considering for investors keen to diversify into smaller growth-orientated businesses.
But the FTSE 250 is not just about momentum names. A sensible portfolio still needs balance, with defensive shares and income stocks alongside growth. That’s usually where long-term resilience comes from, and one dividend share in particular has caught my eye lately…
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Mark Hartley does not hold any positions in the companies mentioned.
This story originally appeared on Motley Fool
