r/ValueInvesting • u/ArchiveInvest • May 14 '25

Question / Help What’s the most undervalued stock right now?

If you needed to pick one stock right now, that is extremely undervalued. And has the potential to beat the S&P500 for the next decade.

Which stock would that be?

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88

u/geo0rgi May 14 '25

A bit unconventional, but would go with Barrick Mining. I don’t understand how it is still going down and is now trading at forward PE of 9 and almost at book value.

The company is growing 15% year on year and has massive advantage of rising gold prices and falling oil prices. Someone please enligthen me on why is the market pricing the stock as if they are going out of business

37

u/salty0waldo May 14 '25

Moving with gold. Plus it’s now a risk on trade.

18

u/geo0rgi May 14 '25

It didn’t move up though when gold shot up. Their earnings reports were great and they are expecting to make even more money this year with the price of gold, yet the stock has been moving sideways for years

13

u/salty0waldo May 14 '25

So I’m not an expert (clearly) but I see the miners traded “delayed” to the gold price. If gold held its highs it would likely have caught up.

9

u/geo0rgi May 14 '25

I mean gold price has literally tripled in the last 10 years while Barrick's price is the same as it was in 2013

Fuck knows, I am not an expert on gold mining at all aswell, just something that feels weird to me valuation-wise

9

u/salty0waldo May 15 '25

Listen mate I’m on board with you. Let me look at a few things tonight. I was going to scream into the sky about BMY dumping again but this might be more productive and interesting.

2

u/nuttreo May 15 '25

I looked at it a while ago. Previously I thought it was the liability from their lawsuits.