Undervalued Sector Runner-Up I'd be remiss in not mentioning the close runner-up sector, and that's the precious metal sub-sector of the basic materials sector. I'm aware of the minor pull-back we've just witnessed in gold and silver pricing. But gold is still above $1,732 and silver is pennies below $34.
The mid-tier producers include Eldorado Gold (EGO), Yamana Gold (AUY) and Seabridge Gold (SA), which is an $923 million market cap gold explorer with two world-class precious metals deposits in British Columbia Canada. I'd encourage you to read and carefully study Seabridge's website to see for yourself the potential billions of dollars of gold, copper and silver that it has in the ground. The two projects that SA is working are massive "trophy assets", and analyst-geologists like Matt Badiali (the editor of the S&A Resource Report) feel strongly that the Chinese are itching to buy into or buy-out Seabridge to pull all the proven precious metals reserves out of the ground and into the markets.
At some time in the near future the Market Mavens will begin buying shares of companies like Seabridge, EGO, AUY, IAMGold (IAG) and Kinross Gold (KGC), which still looks ludicrously cheap (below book value) with a PEG ratio (5-year expected) of only 1.10. It's undoubtedly a takeover target at these prices.
https://seekingalpha.com/article/352981-2-sectors-with-9-stocks-for-outstanding-potential-results