keeps hitting new highs, driven by hopes of a , geopolitical tensions, the China-US trade war, and the US government shutdown. On Thursday morning, it reached a record $4,254 an ounce, up 26% over the past three months.
, which had been slower to move, has also seen strong gains, reaching a record $52.86 today, up 36% over the past six months.
Many experts expect these gains to continue. Several banks, including BofA, now see gold reaching $5,000 an ounce by the end of next year.
Silver looks even stronger, with analysts at Solomon Global and BNP Paribas targeting $100, nearly double its current price.
The sharp rise in precious metals has helped companies in the metals and mining sector. The leading ETF in this space, SPDR S&P Metals and Mining ETF (NYSE:XME), has gained 48% over the past three months.
Given this environment, investing in stocks in this industry could be a smart move. The sector has also been supported by recent strategic investments from the US government, not in gold or oil, but in companies focused on rare metals and rare earths.
To find the best opportunities in metals and mining stocks in the coming months, we used the Investing.com screener. Our goal was to pinpoint the most undervalued stocks in the industry.
We used the following filters:
- Industry: metals and mining
- Market capitalization: over $50 million
- Bullish potential: more than 10% according to InvestingPro Fair Value
- InvestingPro health score: above 2.5 out of 5
Note: InvestingPro Fair Value calculates an intelligent average of several recognized valuation models for each stock on the market. The Health Score, on the other hand, is based on several key financial metrics and peer comparisons to assess the financial strength of companies. If you are not an InvestingPro subscriber already, click here to subscribe now!
This research identified 11 stocks:
Although the screener’s basic functions are available free of charge, some of the criteria used in this search are reserved for InvestingPro, Pro+ plan subscribers. If this applies to you, click here to access this search directly from the screener.
These stocks are all in strong financial health and are currently undervalued by 10.1% to 43% according to InvestingPro Fair Value. If precious metals continue reaching record highs, which seems likely, some of these stocks could climb even further.
Conclusion
These stocks are ones investors should watch over the next few weeks. In addition to a favorable environment for metals, the usually strong performance of stocks in Q4 is likely to provide extra support.
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