The London inventory market’s loved some spectacular positive aspects in 2024. However years of underperformance imply it’s nonetheless filled with prime development shares buying and selling far too cheaply.

Listed here are three of my favourites:

As you possibly can see, every trades on a rock-bottom P/E ratio and PEG a number of. A reminder {that a} PEG beneath 1 signifies a inventory’s undervalued.

Metropolis brokers suppose these shares will ship spectacular near-term earnings development. I’m assured their backside strains will develop quickly over the long run too.

Right here’s why I feel they’re prime shares to think about.

Gold rush

Serabi Gold’s one in every of many gold miners whose earnings are tipped to rocket this yr. Yellow steel costs have simply hit document highs above $2,500 an oz.. Encouragingly, many gold analysts suppose additional positive aspects are coming, as rates of interest reverse and the geopolitical panorama worsens.

This isn’t the entire story with Serabi nonetheless. This specific miner — which has belongings in Brazil — is benefitting from rising manufacturing because it ramps up exercise at its Coringa mine.

The Different Funding Market (AIM) enterprise couldn’t have picked a greater time to extend output. And, pleasingly, manufacturing from Coringa’s set to maintain rising all the way in which to 2026 too.

Metals mining’s an unpredictable enterprise and profits-sapping manufacturing issues may be widespread. Nevertheless, I imagine this menace’s greater than baked into Serabi’s sub-1 P/E ratio.

A prime inventory for robust occasions

Pawnbroker H&T Group may even profit if gold costs proceed appreciating. The enterprise already seems to be set to proceed performing strongly because the UK economic system splutters.

Revenues and pre-tax earnings right here rose 11% and 12.5% respectively in January to June, as folks pawned their items to lift money. The corporate’s pledge lending rose 14% within the interval as properly.

H&T’s quickly increasing to capitalise on these beneficial near-term situations, and to ship stable development additional out. It added eight new shops to its property within the first half to take the full variety of retailers to 281.

Income may undergo if trade laws change later down the road. However at this time, issues are nonetheless wanting good for the AIM agency.

Spectacular worth

Industrial broadcaster ITV’s weak to a contemporary downturn within the promoting market. However with advertising spending enhancing — advert revenues right here rose 10% within the first half — even risk-averse buyers would possibly wish to think about opening a place.

It is a development share that provides distinctive worth, in my view. In addition to carrying these ultra-low P/E and PEG ratios, ITV shares supply an additional bonus in a 6.2% ahead dividend yield.

I feel the FTSE 250 firm has glorious long-term funding potential. Via its ITVX platform, it’s making good progress within the fast-growing streaming section.

With Hollywood strikes over and the advert market enhancing, gross sales at ITV Studios also needs to begin rising strongly once more. Annual natural revenues are tipped to develop 5% on common between 2021 to 2026, forward of the broader market.