Is this amazing FTSE 250 stock still a screaming buy for me after rising nearly 200%?

Last month was not very good for FTSE 250but it stood out in a construction company Morgan Sindall Group (LSE: MGNS).

It is the best-performing stock at the bottom of the index during that period, with its shares up 29.54%. This is not the last either. Morgan Sindall’s stock price has more than doubled over the past year, rising 105.11%.

Stocks are breaking today

In five years, it increased by 197.12%. To put that into perspective, the FTSE 250 rose by just 3.56 percent during a volatile time in the stock market, due to Covid and the cost of living crisis.

This is one reason why I prefer to buy individual stocks rather than index trackers. When they fly, they can really fly. Of course the opposite is also possible.

Morgan Sindall’s latest price increase follows an update on October 22 that said the full year’s profit will be. “priority forward” of expectations. Pinned this “unique scrolls” in its Overbury arm, which provides office fit-out and interior design and construction services. Its order book jumped 15% to £1.3bn.

The group’s construction and infrastructure units were targeted to meet 2024 revenue targets and enthusiasm, and its real estate arm exceeded expectations.

Its mixed partnership category remained “conquered” but with secured orders of £8.9bn on 30 September, the markets did not care. Especially as this follows first half results, published on 8 August, with revenue up 14% to £2.2bn and adjusted profit before tax up 17% to £70.1m.

Net income jumped from £263m to £351m year-on-year, and the board offset it all by increasing the dividend by 15% to 41.5p per share.

It’s an amazing growth stock

Morgan Sindall doesn’t just offer growth in spades, it has consistently increased dividends, too (except for the year of the pandemic). Its trailing yield of 2.99% is surprising, given how quickly the share price has grown. Let’s see what the charts say.

Chart with TradingView

I have a confession to make. I had never heard of Morgan Sindall until this morning. It only got to me because of its stellar performance. If I had been a better, smarter investor, I would have seen the opportunity years ago, and I feel humbled and rich today. Alas…

As always with fast stocks, I’m worried I’ll be too late to the party. So can Morgan Sindall continue to fly?

It still looks good value with a low price-to-earnings ratio of 15.5%. Five analysts providing one-year share price forecasts have set an average target of 3,540p per share. That’s actually down 7.18% from today. However, I think those were produced before the recent bumper results, when the stock price was lower. So I suspect they are behind the curve.

Buying a stock after it has gone over 30% in a month is asking for trouble. I may be hit by profiteering.

Also, investors are looking forward to lower interest rates and Labor’s plans to stimulate housing and construction. But if prices remain high or workers reduce their construction targets, the sector could retreat. Investor expectations are very high for this stock, and any underperformance will be punished.

I still believe that Morgan Sindall’s future looks bright. If the economy recovers, it can look even brighter. I will buy when profit takers sell.