UK share prices have been on the rise recently, but there are still some great growth stocks trading below their true value. Two such stocks worth considering are Central Asia Metals and HSBC Holdings.
Central Asia Metals, a base metals miner, is considered cheap based on various metrics. Analysts predict a 27% increase in earnings in 2024, leading to a low forward price-to-earnings ratio of 10.2. Additionally, the company has a price-to-earnings growth ratio of 0.4 and offers a substantial 8.2% dividend yield for 2024. With a positive outlook for copper prices, Central Asia Metals is expected to benefit from increasing demand for metals like copper due to factors such as renewable energy, electric vehicles, and urbanization. The company’s low-cost operations position it well for future success.
On the other hand, HSBC Holdings, a banking giant, is also undervalued according to predicted earnings and dividends. Analysts forecast a 9% increase in earnings in 2023, resulting in a low price-to-earnings ratio of 7. The bank also offers a high dividend yield of 9.1%, well above the FTSE 100 average. Despite challenges in Asian economies, HSBC is taking steps to capitalize on opportunities in the region by focusing on growth markets and investing in Asia. With a strong reputation and strategic initiatives in place, HSBC is poised for significant earnings growth in the coming years.