How has this FTSE 250 share surged ANOTHER 7% today?

The FTSE 250 is jam packed with brilliant growth stocks. Applied Nutrition (LSE:APN) is one I’ve had my eye on for some time. And here’s the thing: I regret not picking up some shares a year ago when it was much, much cheaper.

Over 12 months, Applied Nutrition’s share price has more or less doubled in value (up 98.3%). Just today (1 June) it’s surged 7% thanks to another exceptional trading update.

Here I’m asking two things: why does the FTSE 250 firm continue to soar? And have investors like me missed the boat?

Picking up the pace

In its own words, Applied Nutrition was established to…

formulate and create premium nutrition supplements for professional athletes, fitness enthusiasts, the gym lifestyle community and people looking to supplement their diet with the highest quality health, wellbeing and beauty nutrition.

In an age when eating and living healthily are gaining importance with consumers, Applied Nutrition has unlocked a formula that’s delivering significant growth.

Sales had leapt 57% during July–January, prompting the firm to raise full-year sales forecasts to £140m. Applied Nutrition pumped up its revenues estimates again today, leading to that latest share price bump. Sales are now tipped at £148m.

What’s its secret?

As I say, the sports nutrition is an enormous global market. And it’s tipped to keep growing at breakneck speed. Grand View Research analysts expect it to swell at a compound annual growth rate of 8.7% between now and 2033, to $138.5bn.

So how is Applied Nutrition managing to thrive in what’s a highly competitive landscape? There are several reasons for its success, including:

• A broad product portfolio that targets a huge range of different consumers.
• Strong brand recognition, boosted by partnerships with top sports teams and athletes.
• Its diversified retail strategy covering supermarkets, health stores and discount retailers.
• A growing international presence (today it also announced the acquisition of US-based Nutrablend Group).

A FTSE 250 bargain?

I must repeat, Applied Nutrition operates in a hugely competitive market. That means future success is by no means guaranteed. Can sales also continue soaring as the cost-of-living crisis lasts in key markets? Despite its resilience so far, this is an added issue for investors to consider.

Yet City analysts are confident revenues and profits can keep surging. A 43% increase in annual earnings is tipped for this financial year ending July. Further rises of 11% are tipped for fiscal 2027 and 2028.

The question is, can Applied Nutrition’s share price keep climbing? I think so, given that the shares are still ‘cheap’. Forget about its forward price-to-earnings (P/E) ratio of 20.3 times, a reading I consider pretty reasonable. A P/E-to growth (PEG) ratio of just 0.5 suggests this is a bargain FTSE 250 share that’s worth serious consideration.