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Looking for the best London growth stocks to buy? Here are two whose earnings are expected to take off in the New Year.
Golden Pancake
Last year, a 26% rise in gold prices boosted gains in Golden Pancake (LSE:SRB) through the roof. City analysts also expect another strong rise in results in 2025: a 62% increase in earnings per share is currently forecast.
I am not surprised by such optimism given the high levels of economic and political uncertainty that persist into the New Year.
The World Gold Council (WGC) notes that “Gold volatility has continued to reduce since the election result, but this may change in the run-up to President Trump's inauguration on January 20, which could reignite investor interest.“.
If the last few days are any guide, gold could have another historic year (it recorded 40 new all-time highs over the course of 2024).
The US president-elect's comments on trade tariffs, Greenland and Canada have lifted bullion prices to multi-week highs, around $2,770 an ounce today.
Other factors that could boost gold further in 2025 include worsening conflict in Europe and the Middle East, lingering concerns about China's economy, and interest rate cuts in response to falling inflation and weak conditions. economic.
It is very possible that Serabi will not meet these growth forecasts. The production problems could affect the company's Brazilian assets, undermining its production goals. The company seeks to increase annual production to 60,000 ounces by 2026.
Gold prices could also reverse if central banks fail to reduce interest rates as quickly as the market expects, which would hit earnings growth.
But overall, I think the gold miner can expect another year of strong earnings growth in 2025. Furthermore, I think these dangers are more than reflected in Serabi's very low valuation.
Today it trades with an ultra-low price-to-earnings (P/E) ratio of 2.6 times for this year.
Hochschild Mining
A bright outlook for precious metals prices bodes well for Hochschild Mining (LSE:HOC) too.
City brokers believe profits here will rise 54% year-on-year in 2025. This also makes it look very cheap at current prices.
In addition to having a P/E ratio of 5.7 times, the gold and silver producer trades with a price-to-earnings growth (PEG) ratio of 0.1. Any reading below one implies that a stock is undervalued.
This FTSE 250 The company could allow investors to effectively hedge their bets with precious metals this year.
While gold and silver may continue to rise thanks to continued investments in safe havens, the latter could also rise on signs of improving economic momentum driving demand for riskier assets. In this scenario, the demand for silver (a material widely used in industrial applications) could increase considerably.
Like Serabi Gold, Hochschild's production improvements – in this case at its flagship Inmaculada project in Peru and the Mara Rosa asset in Brazil – could also help it deliver impressive earnings growth this year.
