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Looking for great growth stocks to buy during the holidays? Here are two I will consider adding to my stock the next time I have some spare cash to invest.
ITV
The media giant ITV‘s (LSE:ITV) has had its share of problems in recent years. As with all commercial broadcasters, earnings have weakened as the weak economy has reduced advertising revenue.
But it doesn’t end there. Actor and writer strikes in the US in 2023 have hurt trading at its production arm ITV Studios. This continues to have an impact: revenues here are down 20% in the year to date, the November trading update showed.
Still, ITV is one of my favorite growth stocks right now. It’s because of the excellent value the business offers following this month’s sharp price drop.
Forecasted earnings growth of 12% through 2024 leaves it trading at a multiple of 7.2 times earnings (P/E). Meanwhile, its price-to-earnings growth (PEG) ratio remains below the watermark value of one, at 0.6.
City analysts expect earnings to rise 5% and 9% in 2025 and 2026, respectively. This is supported by expectations of continued recovery in the ad market.
Streaming giants like Netflix again Amazon it puts traditional broadcasters like these at great risk. However, ITV’s strong development here helps temper any fears I have. Broadcast hours on its ITX platform increased by 14% between January and September.
Besides, I think ITV’s low rating is more than a factor in this long-term threat.
Bank of Georgia Group
Bank of Georgia‘s (LSE:BGEO) shares, in contrast to ITV, are currently rising. However today it also looks cheap based on predicted income growth.
City analysts think that the bank’s core will increase by 25% this year. It therefore trades at a relative P/E ratio of 4.4 times. It also copes with a corresponding PEG reading of 0.2 times.
Bank of Georgia shares have been rising like a yo-yo in 2024. He declined due to fear of the country’s political direction, and what this could mean for its economy. But they have recovered significantly in November as signs of political and economic instability have subsided.
The two options that Georgia has – closer integration with Russia or the European Union – will have a major long-term impact on its economy and banking sector. If the market doesn’t like what it sees, Bank of Georgia’s stock may go down again.
But at current rates, I believe that FTSE 250 strong is worth a closer look. Its P/E ratio is one of the lowest of any bank London Stock Exchange.
In addition, its dividend yield to 2024 is 5.1%, so there is more demand for value lovers like me. For the record, the yield on ITV shares is also very impressive, at 8%.
Forecasts expect Bank of Georgia earnings to rise another 13% in both 2025 and 2026. With the country’s banking sector still booming, I think it would be a good buy this month.
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