Most Undervalued Asset Class/Sector

[Wfearful_Bgreedy]

Wanted to get ideas from the crowd on what you think the most undervalued assett class/sector is today and examples. Some primer or thoughts I had include healthcare, agriculture, volatility, productive low CAPE indexed countries (e.g. Russia).

-Concrete examples:

Agriculture (Out of favor)
CORN
LAND
FPI

Russia (sold on fear)
SBRCY

[Cardboard]

Canadian energy and service stocks (exclude majors such as Suncor).

Cardboard

[cameronfen]

Canadian energy and service stocks (exclude majors such as Suncor).

Cardboard

I second this.  Long stuff that is heavily dependant on tar sands economy but not E&P so no movement in responce to surging oil yet. 

[tombgrt]

E&P in N-A as said above. Agree with Russia too. Some value in Southern-Europe and Asia. EM in general will likely outperform US/EU over 10 year time frame imo.

[StevieV]

Canadian energy and service stocks (exclude majors such as Suncor).

Cardboard

I think so too, but there hasn't been much profit in it yet.  In my opinion, the risk/reward for some names has gotten much better as the oil storage situation has improved, the spot pricing of oil has improved, the potential for better pipelines (Line 3 and Transmountain) has improved, and stock prices have remained stagnant.  At $30-$40 WTI, you had to be willing to anticipate improved oil prices.  At today's approximately $75 WTI, you are only betting on sustained pricing (or course, there will be substantial swings).

[thowed]

Yeah, it's some good stuff to start with, but lots of pitfalls.

SBRCY is interesting - seems to be a great company and dirt cheap.  However institutions seem to use it almost as a quasi-tracker i.e. if they have one stock in the country, it's that one, so the price can plunge if they all go off Russia.  Of course, that also provides opportunity.

[DTEJD1997]

Hey all:

Undervalued stuff & "value" is what I am looking for....

Oil & Gas certainly has some candidates in it.

Up until recently, retail was a INCREDIBLY ripe area...bargains galore as "Amazon will sell everything, don't you know?"

REITS up until recently were offering some great bargains.

BDC's were offering some compelling opportunities.

HOWEVER, I might think that the auto manufacturing sector is perhaps the most undervalued.  Notice, I'm not talking about TSLA.  I am talking about companies that are selling for 4 P/E's.  Of course, in the next year or so, every car will be electric and everybody will be ferried about in a driver less vehicle...so it is amazing that these stocks are selling for even a 4 (or less) P/E.

Then you've got the economy...if it goes down, surely the auto companies will be rushing to the courthouse to file the bankruptcy papers...

Who knows though? 

[Liberty]

Good books.

They cost the same as crappy books, and the rights ideas can be worth millions if not billions of dollars.

[scorpioncapital]

Two points, it's not easy to tell if a class is undervalued or correctly valued. Also, it isn't most undervalued class but most undervalued in relation to risk. I'll take a slightly less undervalued class that I felt was less risky than one that was a speculative bet. Again the thing I find is you can very easily be wrong on your assessment. The key is to work on the skills and insights that make you a better appraiser.

I think in a year like this arbitrage is undervalued. Also possibly cable stocks though I'm not totally sure, I don't think losses are large at today's prices.
I also think some advanced material stocks are good deals , both industrial and biotech. In this case I don't always think in terms of current earnings.

[petec]

Canadian energy and service stocks (exclude majors such as Suncor).

Cardboard

I think so too, but there hasn't been much profit in it yet.  In my opinion, the risk/reward for some names has gotten much better as the oil storage situation has improved, the spot pricing of oil has improved, the potential for better pipelines (Line 3 and Transmountain) has improved, and stock prices have remained stagnant.  At $30-$40 WTI, you had to be willing to anticipate improved oil prices.  At today's approximately $75 WTI, you are only betting on sustained pricing (or course, there will be substantial swings).

Can you give some stock examples? I have some Peyto, but that's gas, and I don't know the oily names.