While I love shopping in the FTSE 100, I must give an honourable mention to the FTSE 250. The mid-cap index is home to some of the most exciting companies the UK has to offer. With that in mind, no wonder it’s up 6.3% year to date.

That impressive rise brings its total gain over the last 12 months to 11.9%. Yet despite its strong form, I think some of its constituents can go under the radar. It’s the FTSE 100 that often garners most of the attention, but I’m not complaining. I want to buy undervalued shares that other investors are passing up on.

Here are two stocks on the index I’m watching like a hawk. If I had the cash today, I’d rush to buy them. I reckon investors should consider taking a closer look at them too.

ITV

First up is ITV (LSE: ITV). The broadcasting giant has had an awesome year. In 2024, its share price has surged 26.4%. That said, it’s still down 37.1% over the last five years.

But at 79.5p, I think its shares could be a steal. And with them gaining momentum, I’m eager to get in now. Currently, the stock trades on a price-to-earnings (P/E) ratio of just 7.4. That’s considerably lower than the FTSE 250 average of around 12. Looking ahead, its forward P/E is 8.8.

As I mentioned above, its share price has taken a beating over the last five years. That’s largely due to the decline of traditional broadcasting.

Inflation has seen ITV’s customers cut back on spending. Alongside that, the rise of streaming service providers has also put further pressure on the firm. Moving forward, these competitors will continue to be a threat.

But ITV is adapting, namely through building out its digital platform. For example, it continues to grow ITVX, its own streaming platform. For the first half of the year, streaming hours were up 15%. Monthly active users also climbed by 17%.

Games Workshop

Next up is a stock I reckon is destined for the FTSE 100: Games Workshop (LSE: GAW). Its rise in the last decade has been mighty impressive. During that time, its share price has climbed 1,683.3%. In the last five years, it has returned 121.3%.

There are a few reasons I like the stock. For one, it has a 3.6% dividend yield. That’s around in line with the FTSE 250 average. However, it has been steadily rising in recent years.

What’s more, management seems keen to keep rewarding shareholders. It certainly has the balance sheet to do so with plenty of cash on its books.

Another reason I like the business is because of its strong market position. It’s by far and clear the leader in the industry, which gives it a competitive advantage.

That said, I am becoming more wary of competition. As the industry continues to grow, that’s attracting new players to the field. This will put pressure on Games Workshop. The ongoing cost-of-living crisis could also see customers cut back on spending.

But I back Games Workshop to continue delivering. Despite tough trading conditions, for the 53 weeks ended 2 June, the business posted its best-ever results. That included an 11.1% jump in revenue to £494.7m.