The FTSE 250 endured a tough March, but is showing some signs in early April that the worst of the move lower could be over. As the dust starts to settle, some companies look attractive, but others are flashing warning signs for me.

Differentiating between the two is very important! Here’s one stock I think looks undervalued, but another I’m very cautious about.

Building on the future

Let’s start with the company I believe is undervalued: Travis Perkins (LSE:TPK). It’s down 18% in the past month, but up 11% over a broader one-year period.

The hit in the past month came mostly from the release of the company’s full-year results. It showed trading conditions remain subdued,…