I think these growth stocks offer fantastic all-round value at current prices and are worth a look. Let’s take a peek.
Serabi Gold
Gold prices have retreated from the record peaks of $3,500 per ounce punched in late April. Yet I’m confident the yellow metal — which was recently changing hands for around $3,310 — has significant scope to rebound.
In my view, this makes gold stock Serabi Gold (LSE:SRB) an attractive proposition to consider this month.
Owning gold shares exposes investors to the unpredictable business of metals mining. Setbacks can be common, which push up costs and impact production.
But it can also be a more lucrative way to profit from rising bullion prices. That’s because gold miners enjoy operating leverage: with many of their costs fixed, their profit margins can grow faster than the price of gold itself.
This is illustrated in Serabi’s strong earnings forecast for 2025 — City analysts forecast a 90% rise in annual profits.
Reflecting this impressive estimate, the miner’s forward price-to-earnings (P/E) ratio is just 2.9 times, while its corresponding P/E-to-growth (PEG) ratio is below 0.1.
Any reading below one suggests a share is undervalued.
These positive predictions also mean Serabi is tipped to start paying dividends to investors. And so the miner delivers a brilliant 6.3% prospective dividend yield.
There are no guarantees that gold will continue its multi-year bull run. But I’m confident that it can, based on increasingly erratic US economic and foreign policy, the likelihood of continued US dollar weakness, and the prospect of sustained interest rate cuts by central banks.
With all-in sustaining costs (AISC) of below $1,800 per ounce, Serabi has room to remain highly profitable in the current climate.
Ramsdens Holdings
Pawnbroker Ramsdens (LSE:RFX) is also benefitting from bullion’s continued bull run. Indeed, the small cap raised its profit guidance in early April thanks to “the continued high gold price, coupled with a 5% increase in the weight of gold purchased“.
The prospect of further gold strength is one of several reasons why I think Ramsdens should keep delivering impressive earnings growth. With the cost-of-living crisis enduring and the labour market weakening, demand for its financial services should remain buoyant.
City analysts share my bullish view on Ramsdens’ earnings. They think the pawnbroker will record a 14% bottom-line boost this financial year (to September 2025).
As a result, its shares trade on a forward P/E ratio of 9.7 times, while its corresponding PEG also comes in low at 0.7.
To add an extra sweetener for value investors, the dividend yield is a healthy 4.5%.
Conditions are clearly favourable for the company right now. Yet, I believe Ramsdens shares could also be a great investment to hold beyond the present, underpinned by its ongoing store expansion strategy. It opened seven new stores in financial 2024 alone to take the total to 169.
Unfavourable changes to credit services laws could impact profits later down the line. Near-term earnings could also be affected by a sharp improvement in economic conditions. But with no such obstacles currently on the horizon, I think the company’s a top stock to consider in June.
