There is no doubt one sector has ruled ASX shares in 2022.
While the S&P/ASX 200 Index (ASX: XJO) is now lower than where it started the year, the S&P/ASX 300 Metals & Mining (ASX: XMM) index is up a stunning 18%.
And many professional investors are forecasting the mining sector's outperformance to continue.
"A commodity trading house may struggle to obtain the requisite insurance and finance to cover the purchase and transport of a shipment of Russian-origin commodities," said Datt Capital chief investment officer Emanuel Datt last month.
"As such, almost overnight, we have seen an enormous uplift in demand for commodities of non-Russian origin to fill this sudden supply gap."
This week a couple of experts picked out three ASX shares in the resources sector that still seem like great value at the moment:
Diversified miner enjoying strong demand
Marcus Today portfolio manager Thomas Wegner likes the look of South32 Ltd (ASX: S32) shares.
"The diversified miner achieved a record operating margin and a significant improvement in its underlying 2022 half-year result, despite lingering cost pressures," he told The Bull.
The South32 share price is already up more than 31% this year, but Wegner still rates it as a "buy".
"Global infrastructure investment is expected to lift demand for the metals critical for a low carbon future, which will assist South32's earnings," he said.
"Aluminium, nickel, zinc, lead and silver contribute more than 44% to underlying earnings."
It seems Wegner is not the only fan of South32.
According to CMC Markets, 15 out of 20 analysts rate the stock as a "strong buy". The remaining five say "hold".
Share price has hit the bottom
Fairmont Equities boss Michael Gable currently favours Pilbara Minerals Ltd (ASX: PLS) among the resources stocks.
"Growing demand for lithium is translating to rising share prices for lithium miners," he said.
"Pilbara Minerals is one of Australia's biggest producers."
Pilbara shares have underperformed compared to the company's mining peers, rising only 2.84% between market close on 4 January and their current price.
But Gable, as a technical analyst, feels the stock has turned a corner.
"Pilbara has reversed the downtrend from earlier this year and we expect the share price to move higher from here," he said.
"The shares have risen from $2.57 on March 15 to trade at $3.215 on March 31."
The Pilbara share price finished Monday at $3.62. In early trade on Tuesday, Pilbara shares are going for $3.74 apiece.
When you literally strike oil
The share price for Santos Ltd (ASX: STO) has popped more than 25% for the year.
But Wegner still likes the upside.
"Australia's leading supplier of natural gas recently announced a significant oil discovery off the Western Australian coast."
Even before that discovery, the business was performing well.
"Santos posted an underlying profit of US$946 million in fiscal year 2021 — a 230% increase on the prior corresponding period," said Wegner.
"Santos is benefiting from global energy demand and rising crude oil and LNG prices."
The analyst community very much agrees with Wegner.
According to CMC Markets, 14 out of 17 analysts rate the stock as a "buy", while just three are remaining neutral with a "hold" rating.
