Down 30%+! A falling FTSE 250 stock that looks dirt-cheap today

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Volatility on financial markets remains extreme as investors worry about on high inflation and a possible recession. Stock price weakness across the whole of the FTSE 250 illustrates the scale of risk aversion right now.

These are problems that a trader and a short-term investor needs to consider carefully. But as someone who invests for the long haul, I think the 2022 market downturn provides many excellent dip-buying opportunities for me.

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Wizz Air Holdings (LSE: WIZZ) is one dirt-cheap UK company I’m considering buying today. It has endured a stock price drop of 35% in the past three months alone. I think it could deliver exceptional investor profits once strong economic growth returns.

Flying lower

2022 has been a nightmare for many UK airline stocks. Flight cancellations have ballooned as staff shortages have emerged. Indeed, Wizz Air reduced its summer capacity again this month in response to the crisis.

Meanwhile, fuel costs are soaring as the price of crude oil rockets. And fears over ticket sales are growing as consumers and businesses start to tighten the pursestrings.

What’s more, Wizz Air’s share price in particular has been badly hit following Russia’s invasion of Ukraine. With a focus on Central and Eastern Europe it is particularly susceptible to changing economic and geopolitical conditions in the region. Its operations in Ukraine remain closed, of course.

Having said all that, right now it still retains a bright long-term outlook. The emerging regions it concentrates on remain tipped for strong economic growth in the coming years. This could ignite demand for its low-cost plane tickets.

Robust regional growth

To illustrate that potential, take Poland and Romania as examples. These are by far the stock’s biggest markets by number of routes. The Polish economy has tripled in size over the past three decades. And, looking ahead, Romania’s could be on course to grow above the European average too. The European Commission has also tipped GDP growth of 3.6% in 2023, above the EU average of 2.3%.

A cheap FTSE 250 share

City analysts also think Wizz Air will bounce back into profits growth in financial 2024. This means the airline stock is now on a rock-bottom PE ratio of just 8.8 times. I think the company’s sinking share price represents a top dip-buying opportunity.

I don’t just like it because of its exposure to Central and Eastern Europe. It’s also expanding into other parts of the continent, a drive that boosts its opportunities in the fast-growing budget airline sector.

Analysts think the low-cost airline industry will be worth $440.5bn by 2030. That’s up almost threefold from the $115bn it was valued at in 2016. And I think Wizz Air could be one of the best ways for me as an investor to capitalise on this trend.