3 Underrated Stocks in 2025's Standout Sector

Two months ago, we identified a sparkling opportunity in gold. 

Since then, gold prices have surged 17%.

(Even more impressive is that our top pick — Kinross Gold (KGC) — is up more than 50% since being added to the Zen Investor portfolio).

While the rest of the market stumbles, you might be tempted to cash out. 

Don’t. 

The case for gold is stronger than ever, and the bull market has not yet reached its final innings. 

In fact, there are still hidden gems among lesser-known miners that have yet to meaningfully participate in the bull market. 

Let’s dive into why gold’s rally is far from over and uncover the under-the-radar names poised to deliver outsized returns.

Why the Gold Bull Market Still Has Legs

In financial markets, we are seeing simultaneous weakness in stocks, bonds, and the US dollar.

Previous occurrences took place during similar periods of instability and financial crises such as the failure of Lehman Brothers, collapse in subprime mortgage bonds, and President Nixon devaluing the US dollar and implementing price controls. 

It’s not surprising that a big winner during all of these periods was gold.

This is because gold outperforms when investors are losing confidence in assets that form the foundation of the global financial system such as the US dollar and Treasuries. 

Here are some more positive developments for gold:

• Trade Talks: If trade deals reduce tariffs, gold may dip briefly, but long-term uncertainty should support prices. Reduced demand for U.S. assets — whether from smaller trade deficits or perceptions of instability — also supports gold, as seen in the weak Treasury response to recent catalysts.
• Real Interest Rates are likely to fall, with the Fed expected to cut rates amid tariff uncertainty. Tariffs could also spike inflation, pushing real rates lower and increasing recession risks — both bullish for gold.
• Rising Deficits — especially if the economy weakens or tax cuts pass — further support gold, as debt servicing grows as a share of federal spending.

3 Precious Metals Laggards to Buy Now

Given that the gold bull market’s fundamentals are sound and continue to improve, investors may want to explore buying smaller, lagging gold and silver miners. 

These stocks provide more leverage and upside in the long term as the bull market matures and continues higher.

All of the below picks fit the bill and enjoy top marks from our Zen Ratings system, which evaluates stocks according to 115 factors proven to drive growth in stocks.

1. New Gold (NYSE: NGD)

With an overall A rating, NGD is one of the highest-ranked stocks, not only in an above-average Industry but among the thousands of stocks we track. It currently ranks in the top 1% among all stocks according to the Zen Ratings. 

A-rated stocks have an average annual return of 32.5%, which is significantly above the S&P 500’s average annual return of 10.5%.

Business is booming for this Canadian miner … yet even while the company forecasts production increases, it remains well off from its 2012 highs despite gold prices nearly 100% higher. 

Despite recent strength, the stock is attractively valued with a forward P/E of 5.2 — a fact that is reflected in its above-average Component Grade for Value. 

NGD also earns high marks for Financials, a category that assesses balance sheet strength, cost management, leverage, and return on equity to provide a buffer against market volatility.

2. Silvercorp Metals (NYSE: SVM)

This leading Chinese producer of silver, gold, lead, and zinc is growing.

Currently, it has projects that are expected to come on line over the next few years which should diversify production and add grow output by 25%. Like NGD, SVM is quite cheap with a forward P/E of 9.7 and more than 50% below its all-time highs. 

Like miners, silver has also lagged gold. This increases the conviction that the bull market in gold is closer to its early to middle stages rather than a climax. 

Due to its combination of growth and value, the stock is rated a Strong Buy, making it one of the top silver miners according to the Zen Ratings. 

The company also has $150 million in cash which is more than 40% of the company’s total market cap, adding to SVM’s margin of safety, contributing to its B grade for Value.

3. Sandstorm Gold (NYSE: SAND)

SAND is intriguing, because it is a royalty company. 

Royalty and streaming companies provide upfront financing in exchange for a share of production. This means increased diversification compared to traditional miners, which are subject to operational and political risks that could affect production.

Like the other operations on this list, SAND is scaling up production this year — Last year, its streams generated 80,000 ounces of gold, versus a projected 85,000 and 90,000 ounces this year. 

SAND is more expensive than NGD or SVM, but it has less risk and higher leverage to gold prices given its extremely low cost of production. It also is in a financially strong position with $50 million in net debt and $300 million in liquidity.  

SAND has an overall Buy (B) ratings in the Zen Ratings. B-rated stocks have an average annual return of 19.8%. It also has a B grade for Momentum which measures factors like volume, volatility, and share turnover that correlate to short-term, outperformance.

Conclusion

Yes, gold has enjoyed some nice gains and is now on everyone’s radar.

However, prices are simply reacting to an improving fundamental situation. We see none of the excesses that indicated climaxes in previous bull markets.

Therefore, investors should feel comfortable by going further on the risk spectrum and consider smaller miners that have more upside.

What to Do Next?

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