Could this FTSE 250 stock be a compelling buy after a 56% drop?

Could this FTSE 250 stock be an attractive investment after a 56% decline? By Zaven Boyrazian, CFA | August 4, 2025 | 9:11 AM In the past year, the FTSE 250 index has provided investors with strong returns, yet not all constituent companies have fared equally. One notable underperformer is Vistry Group (LSE:VTY). Despite ongoing high demand for new homes, Vistry has faced challenges in meeting its financial targets, issuing profit warnings to shareholders along the way. Consequently, the stock has plummeted by 56% since August of the previous year. While such declines are concerning, they can also present compelling buying opportunities if the underlying issues are resolvable. So, is now an opportune moment to consider investing in Vistry? Understanding the setbacks, a significant factor appears to be operational mismanagement. In October 2024, Vistry disclosed it had underestimated development costs in its South Division by up to 10%. Further problems emerged in December, including construction delays and additional profit warnings. Overall, Vistry's pre-tax profit guidance for 2024 was reduced from £350 million to £250 million—a decline of nearly 40% compared to 2023. It's worth ...