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Investors do not need to spend a fortune to purchase high-quality products. FTSE 250 actions. Here are two to consider with excellent long-term potential despite their low price-to-earnings (P/E) ratios.
ITV
Amid improving conditions in the advertising market, ITV (LSE:ITV) could be about to surpass the horrors of recent years.
The broadcaster's share price has fallen 55% since 2019, a period that was also affected by strikes by writers and actors in the United States.
In 2025, ITV expects total advertising revenue to increase by 2.5%. This despite the fact that the results of the last quarter will be affected by extremely strong comparatives and the nervousness of advertisers around the October budget.
Digital advertising revenue is especially strong, up 15% between January and September. This is testament to the huge success of the company's ITVX streaming platform, a potential lever for strong long-term earnings growth.
I think ITV stock deserves serious consideration at current prices, as it trades on a forward price-to-earnings ratio of 7.2 times.
In addition to this, its forward price-earnings growth (PEG) ratio is 0.6. Any reading less than 1 indicates that a stock is undervalued relative to its expected earnings.
The 7.9% forward dividend on ITV shares provides an added sweetener. This is more than double the FTSE 250 average of 3.4%.
Like any stock, investing in this broadcasting giant involves taking on some risk. It faces extreme competition from other forms of media, and especially from other streaming companies. Its recovery may also be hampered by a prolonged slowdown in the national economy.
Overall, though, I think the potential benefits of ITV stock still make it worth considering. And especially given its low rating.
Bank of Georgia Cluster
The risks you face Bank of Georgia (LSE:BGEO) have increased recently. This is despite the fact that the Eurasian country's economy (and, as a consequence, its banking industry) continues to boom.
Helped by a GDP rise of 11.1% in the third quarter, the FTSE 250 bank saw lending activity rise by 18.8% in constant currencies. This was up from 17.7% in the previous quarter.
And so, pre-tax profit soared 43.8% during the third quarter.
Investors are worried about the long-term economic implications of Georgia's political crisis for their banks. The country is in a tug of war between politicians who want better ties with Europe and those who see their future alongside Russia.
But could this uncertainty now influence Bank of Georgia's low stock price? I think the answer could be yes.
Today, its forward P/E ratio stands at 3.3 times. This is well below the bank's five-year average close of 5.4 times.
Meanwhile, the emerging market bank's forward PEG is at a low of 0.1.
It is also worth remembering that the bank's operations in Armenia could help offset potential problems in its home market. It derives about 22% of its pretax profits from Georgia's southern neighbor.
Given that Bank of Georgia also has a 5.1% dividend yield, I think it's another attractive value stock to consider.
