Looking for great growth shares to buy during the festive period? Here are two I’ll consider adding to my stocking when I next have spare cash to invest.
ITV
Media giant ITV‘s (LSE:ITV) had its share of troubles in recent years. Like all commercial broadcasters, earnings have suffered as the weak economic environment has sapped advertising revenues.
But this isn’t all. Actor and writer strikes in the US in 2023 have damaged trading at its ITV Studios production arm. This continues to have an effect: revenues here are down 20% in the year to date, November’s trading update showed.
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Still, ITV is one of my favourite growth shares right now. It’s thanks largely to the excellent value the business offers following this month’s sharp price fall.
Forecasted earnings growth of 12% for 2024 leaves it trading on a price-to-earnings (P/E) multiple of 7.2 times. Meanwhile, its price-to-earnings growth (PEG) ratio sits well below the value watermark of one, at 0.6.
City analysts expect earnings to rise an additional 5% and 9% in 2025 and 2026. These are supported by expectations of a steady recovery in the ad market.
Streaming giants like Netflix and Amazon pose a large risk to traditional broadcasters like this. However, ITV’s strong progress here helps temper any fears I have. Streaming hours at its ITVX platform rose 14% between January and September.
Besides, I think ITV’s rock-bottom valuation more than factors in this long-term threat.
Bank of Georgia Group
Bank of Georgia‘s (LSE:BGEO) shares are, in contrast to ITV, rising strongly at the moment. Yet today it also looks dirt-cheap based on predicted earnings growth.
City analysts think the bank’s bottom line will soar 25% this year. So it trades on a corresponding P/E ratio of 4.4 times. It also deals on a corresponding PEG reading of 0.2 times.
Bank of Georgia shares have been up and down like a yo-yo in 2024. They’ve fallen due to fears over the country’s political direction, and what this could mean for its economy. But they’ve recovered sharply in November as signs of political and economic upheaval have receded.
The two choices Georgia has — to align itself more closely to Russia or the European Union — will have massive long-term implications for its economy and its banking industry. If the market doesn’t like what it sees, shares in Bank of Georgia could slump again.
But at current prices, I believe the FTSE 250 firm is worth a close look. Its P/E ratio is one of the lowest for any bank on the London Stock Exchange.
Furthermore, its dividend yield for 2024 is 5.1%, provided an added sweetener for value lovers like me. For the record, the yield on ITV shares is also very impressive, at 8%.
Forecasters expect Bank of Georgia’s earnings to rise another 13% in both 2025 and 2026. With the country’s banking sector still booming, I think it could be a great buy for me this month.
