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The UK stock market remains a great place to find ultra-cheap stocks to buy. The FTSE 100 and FTSE 250 indexes have got off to a strong start in 2026 following last year’s epic gains. But many top-quality shares still look criminally undervalued at today’s prices.
Serabi Gold‘s(LSE:SRB) one top stock that’s grabbed my attention. But what makes it such a brilliant investing opportunity to consider?
Gold gains
Soaring bullion prices have driven Serabi Gold’s shares 160% higher over the past year. Electrifying price rises like this can often lead to a correction and a fat loss for investors. But I’m confident gold stocks can keep rising as the geopolitical landscape ruptures.
Gold prices leapt another 7% last week alone, and they’re a whisker away from new highs of $5,000 an ounce. Values rose as uncertainty over US intentions over Greenland increased, the dollar lost further value, and trade tensions between the US and Europe grew.
Analysts are broadly expecting gold to keep gaining ground, with Goldman Sachs raising its year-end forecast to $5,400. The thing is, brokers continue to play catch-up to market events, and — as we saw throughout 2025 — I think precious metals will keep beating expert predictions.
A top bargain stock
As for Serabi, I believe this bright outlook for gold still isn’t being baked into its share price. Despite last year’s gains, the miner trades on a price-to-earnings (P/E) ratio of 4.7 times for 2026.
Annual earnings are tipped to rise 54% this year. This also leaves the company with a price-to-earnings growth (PEG) ratio of 0.1. Any sub-1 reading indicates a stock trading in bargain-basement territory.
Purchasing gold mining stocks leaves investors naturally exposed to mining industry risk and this risk can be significant. However, it can also lead to supersized gains, as Serabi’s 160% price rise versus gold’s 79% increase during the last 12 months shows.
That’s more than double the return, and reflects the fact miners’ profits can rise far more sharply during bull markets. I think Serabi can continue outperforming too as it takes steps to supercharge production. It’s targeted annual production of 53,000-57,000 ounces for 2026. That’s up from the record 44,169 ounces it produced last year.
Serabi hopes to produce 100,000 ounces a year by 2028.
20% rise?
City analysts largely agree that the gold digger’s a top share to buy. Of the three with ratings on the FTSE 250 company, two rate it a Strong Buy, with the remaining one giving it a Hold.
This leads to bright share price forecasts for the next year too. The average price target for Serabi Gold shares among this group is 432p, representing a 20% rise from current levels.
That suggests another tasty return for investors. But as with gold itself, I think these forecasts could be steadily upgraded as 2026 progresses. For investors seeking dirt cheap growth stocks to buy, I think Serabi’s worth serious consideration.
