2 exciting growth stocks you can't afford to ignore

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Rocket taking off

Perhaps the most satisfying part of investing is finding stocks which appear to be undervalued. After all, with the FTSE 100 trading near an all-time high and the stock market being relatively efficient, finding bargain shares seems more difficult than ever. However, there are still opportunities available. Here are two stocks which could deliver exciting growth in future years.

Impressive performance

While the UK economy appears to be experiencing a rather challenging period as Brexit looms, Hollywood Bowl(LSE: BOWL) reported upbeat performance on Wednesday. The UK's largest ten-pin bowling operator recorded total revenue growth of 7.8% and like-for-like (LFL) revenue growth of 1.2%. This is despite the Easter trading period falling in the second half of the year for 2017, compared to in the first half of 2016. This is estimated to have reduced LFL sales growth by around 2%pts.

Looking ahead, the company's expansion plans are on track. It expects to open two prime location centres per annum, and already has six centres signed up to provide the pipeline until 2020. Alongside a refurbishment programme which is aimed at improving the customer experience, this should allow the business to deliver improved performance in future.

Trading on a price-to-earnings (P/E) ratio of 15.8, Hollywood Bowl seems to be rather highly valued. However, when its earnings growth forecast of 13% for next year is factored-in, its price-to-earnings growth (PEG) ratio of 1.2 seems fair. Clearly, the UK economy could experience a difficult period as inflation moves higher and consumer spending looks set to be squeezed. However, the company seems to have a sufficiently wide margin of safety to merit investment.

Turnaround potential

Following a 35% fall in its share price in the last year, talent representation and sports marketing company TLA Worldwide(LSE: TLA) could be a strong turnaround play. A key part of this is its forecast earnings growth rate of 33% in the current financial year. This puts its shares on a PEG ratio of just 0.2, which indicates that the market may be undervaluing the business.

According to its most recent update, the company's Events portfolio continues to perform well. It has a strong pipeline of events over the short term, while the Baseball Representation Platform also appears to have growth potential. It has also enjoyed some success in signing new clients within its Sports Marketing division, while there is the potential to continue to expand into new territories over the medium term.

With dividends increasing by 15% at the interim stage of the year, TLA Worldwide now yields around 3.2%. Looking ahead, further double-digit increases could be on the cards, since the company's shareholder payouts are covered 3.7 times by profit. This shows that as well as offering a relatively low share price and earnings growth potential, TLA Worldwide could become a stronger income stock over the coming years.

Top growth stock

Despite this, there's another stock that could be an even better buy. In fact it's been named as A Top Growth Share From The Motley Fool.

The company in question could prove to be a stunning growth play in 2017 and beyond. It could make a positive impact on your portfolio's performance.

Click here to find out all about it - doing so is completely free and comes without any obligation.

Peter Stephens has no position in any 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.