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Which equity sectors are still undervalued?

I bought REIT’s cheap because noone wanted to touch property and it was a good decision. I like finance but the quality banks/investment banks have already shot up so they’re no longer a ‘secret’. Resource companies are a bit in between- huge demand from BRIC countries but uncertainty still tames them a little for not. Any other undervalued sectors that most people don’t anticipate yet?

(I’m not interested in Penny Stocks, wood chips or spam recommendations. I’m after quality).

I am personally very big on natural gas. My reasoning goes like this:
1) it is selling for ~$3/MCF. Production costs average $8/MCF. The current price is not sustainable
2) It is a clean burning fuel and is generally cheaper for the same energy content than oil so old powerplants that run on oil will likely switch.
3) again looking at is “green potential” it is one of the few viable “solutions” we have to global warming so it will likely be popular for that reason as well.

I like: XTO (mostly hedged at $10/MCF), SWN and DVN

I also like oil refiners, most of them are selling at roughly their book value and these things are cash machines. As I see it they are selling at about 2-3x realistic future earnings. This is way too low. I like SUN a ton (bought a little at $24, I will likely buy more soon) VLO is pretty good and, if you don’t mind a bunch of debt, WNR is ok too.

I am looking at lumber manufacturers at the moment and railroads seem good (I own CNI and have for a while) although they are a growth play, not a value one. I would direct your attention to health insurance companies as there is still some uncertainty about the healthcare plan priced into their stocks.

As far as I’m concerned Brazil may be somewhat underpriced, although it isn’t glaringly obvious at this point.

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