2 top growth stocks to consider for 2025!

These growth stocks are expected to deliver more spectacular earnings increases in 2025. Is it time to consider loading up?

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Image source: Getty Images

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

Looking for London’s best growth stocks to buy? Here are two whose earnings are tipped to take off in the New Year.

Serabi Gold

Created with Highcharts 11.4.3Serabi Gold Plc PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

Last year, a 26% rise in gold prices drove profits at Serabi Gold (LSE:SRB) through the roof. City analysts are expecting another sharp bottom-line rise in 2025 too — a 62% increase in earnings per share is currently tipped.

I’m not surprised at such bullishness give the high levels of economic and political uncertainty persisting in the New Year.

Should you invest £1,000 in Rio Tinto right now?

When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets. And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Rio Tinto made the list?

See the 6 stocks

The World Gold Council (WGC) notes that “gold volatility has continued to reduce since the outcome of the election, but this may change in the run up to President Trump’s inauguration on 20 January, which may reignite investor interest“.

If the last couple of days are any guide, gold could be in for another landmark year (it posted 40 new record highs during the course of 2024).

Comments from the US President-elect on trade tariffs, Greenland, and Canada have pushed bullion prices to multi-week highs around $2,770 an ounce today.

Other factors that could drive gold even higher in 2025 include worsening conflict in Europe and the Middle East, enduring concerns over China’s economy, and interest rate cuts in response to dropping inflation and weak economic conditions.

It’s quite possible that Serabi could miss these growth forecasts. Production issues could strike the company’s Brazilian assets, undermining its output goals. The company is looking to ramp annual production up to 60,000 ounces by 2026.

Gold prices might also reverse if central banks fail to cut interest rates as rapidly as the market hopes, denting profits growth.

But on balance, I think the gold miner can look forward to another year of strong profits growth in 2025. Besides, I believe these dangers are more than reflected in Serabi’s rock-bottom valuation.

Today it trades on 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 think earnings here will rise 54% year on year in 2025. This also leaves it looking dirt cheap at current prices as well.

Created with Highcharts 11.4.3Hochschild Mining Plc PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

As well as having a P/E ratio of 5.7 times, the gold and silver producer trades on a price-to-earnings growth (PEG) ratio of 0.1. Any reading below one implies that a share is undervalued.

This FTSE 250 company could allow investors to effectively hedge their bets with precious metals this year.

While gold and silver may continue to rise on continued safe-haven investment, the latter could similarly rise on signs of improving economic momentum that boosts demand for riskier assets. In this scenario, demand for silver — a heavily used material in industrial applications — might rise strongly.

Like Serabi Gold, Hochschild’s production improvements — in this case, at its flagship Inmaculada project in Peru and Mara Rosa asset in Brazil — could also help it deliver further impressive earnings growth this year.

But here’s another bargain investment that looks absurdly dirt-cheap:

Like buying £1 for 31p

This seems ridiculous, but we almost never see shares looking this cheap. Yet this Share Advisor pick has a price/book ratio of 0.31. In plain English, this means that investors effectively get in on a business that holds £1 of assets for every 31p they invest!

Of course, this is the stock market where money is always at risk — these valuations can change and there are no guarantees. But some risks are a LOT more interesting than others, and at The Motley Fool we believe this company is amongst them.

What’s more, it currently boasts a stellar dividend yield of around 10%, and right now it’s possible for investors to jump aboard at near-historic lows. Want to get the name for yourself?

See the full investment case

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

Investing Articles

Prediction: 12 months from now, £5,000 invested in Tesla stock could be worth…

Tesla stock has endured a miserable year so far, falling by 29%. Muhammad Cheema takes a look at how it…

Read more »

Investing Articles

See what £10,000 invested in Tesla shares at their mid-December peak is worth today 

As the world absorbs the full scale of Donald Trump's tariffs, Tesla shares are reeling. Investors who bought the stock…

Read more »

Hand flipping wooden cubes for change wording" Panic " to " Calm".
Dividend Shares

2 ‘safe’ LSE dividend stocks to consider as global markets sell off

As global markets experience high levels of volatility due to economic uncertainty, investors are piling into these ‘safe-haven’ dividend stocks.

Read more »

Investing Articles

US stock market rout: an unmissable opportunity for investors?

His tech-heavy portfolio has been smashed by Trump’s tariffs. However, Dr James Fox believes there could be some opportunities in…

Read more »

Investing Articles

After a 13% ‘Trump tariff’ fall, is the Barclays share price too cheap to miss?

Does the Barclays share price fall mean we should all panic and run screaming from the stock market? Nah, of…

Read more »

Mature Caucasian woman sat at a table with coffee and laptop while making notes on paper
Investing Articles

2 investment trusts to consider for a Stocks and Shares ISA

These two investment trusts have a different focus -- but our writer sees both as worth considering, one more for…

Read more »

Investing Articles

Deutsche Bank reiterates Buy rating on 9.6% yielding FTSE 250 stock that was “most shorted in UK”

Our writer investigates why a major broker remains optimistic about a FTSE 250 stock that was once the most shorted…

Read more »

Investing Articles

2 things to remember when stock markets are turbulent

US trade policy has rattled the stock markets in New York, London and elsewhere. Our writer outlines a couple of…

Read more »