The London stock market’s picking up a real head of steam. But despite these recent healthy gains, there are still some dirt cheap growth stocks to be found on the FTSE 100 and FTSE 250.
Here, I’ve put together a well-diversified selection of cheap growth stocks. Investors can pick up the basket in its entirety for less than £100.
Bank of Georgia Group
Earnings at Bank of Georgia Group (LSE:BGEO) have soared in recent years, thanks to the Eurasian country’s booming economy.
Things continue to look rosy in the region, with the International Monetary Fund predicted GDP growth of 4.8% in 2024. This underpins City forecasts that Bank of Georgia’s earnings will rise 12% in 2024.
The FTSE 250 firm is laying the groundwork for long-term growth too through regional expansion. It has just sealed the acquisition of Ameriabank to give it a foothold in Armenia’s fast-growing economy.
At £50.80, Bank of Georgia shares trade on a forward price-to-earnings (P/E) ratio of 5.1 times. They also command a healthy 5% dividend yield, providing excellent all-round value.
As with the UK, competition’s rising in Georgia’s banking sector. But, on balance, I think this is an attractive stock to consider, and especially at recent prices.
Severn Trent
Water suppliers like Severn Trent (LSE:SVT) aren’t traditionally viewed as exciting growth shares. They’re known for their ability to deliver stable profits rather than outstanding bottom-line expansion.
Yet City analysts think Severn Trent’s earnings annual earnings will rocket 48% this year. Consequently, the utilities giant trades on a forward price-to-earnings growth (PEG) ratio of 0.5.
A reading below 1 signifies that a stock is undervalued. This comes on top of a meaty 4.9% dividend yield.
Water suppliers are popular defensive shares, though they aren’t without their risks. This FTSE 100 operator has been hit by higher energy costs of late, while regulator Ofwat’s taking a close look at the broader sector’s environmental record.
However, at its current price of £23.84, I think it’s cheap.
Coca-Cola HBC
Soft drinks giant Coca-Cola Hellenic Bottling Company (LSE:CCH) is a Footsie stock I already own in my portfolio. And at £23.94, I’m thinking of snapping up more of its shares.
The company bottles some of the world’s most popular beverages including Coke, Sprite and Fanta, and sells them across Europe and in parts of Africa. It makes 67% of revenues from emerging and developing markets, and I’m expecting sales to rise strongly as wealth levels in these regions march higher.
Competition is fierce in the drinks market. But a combination of strong marketing and product innovation means it’s (so far at least) successfully navigating this threat.
Analysts think Coca-Cola HBC’s earnings will continue growing by double-digit percentages. This begins with a 25% increase in 2024, leaving the business trading on a corresponding PEG ratio of 0.5.
A chunky 3.5% dividend yield sweetens the investment case further.
