Silver, Steel Stocks Outshine Other Metals

NEW YORK (TheStreet) -- The following stocks have outperformed the S&P 500 Index, which lost 0.7%, and the S&P 500 Metals and Mining Index, which increased 0.7% during the past week.

Coeur d'Alene Mines (CDE), one of the world's leading silver producer, increased 12.9% to $16.41. Subsequent to return of normalcy conditions after civic unrest at one of its silver mines, the company said that it continues to maintain its production guidance for 2010 at 6.5 million ounces of silver at an average cash operating cost of $8 per ounce. On Aug. 18, Deutsche Bank reassigned a hold rating to the stock with a target price of $18 representing a 9.7% upside.

Mag Silver (MVG), explorer of silver and gold properties, was up 10.4% after the company revealed that it has signed an agreement with Canadian based Canasil Resources in order to earn a 60% interest in a Mexico-based project. The company would pay $5 million in exploration expenses and $500,000 in cash over four years.

Silver Wheaton (SLW), Silver Standard Resources (SSRI) and Pan American Silver (PAAS) were up 5.8%, 4.9% and 2.4% respectively outperforming the metal index.

United States Steel Corporation (X) rose 4.3% during the past week on high speculation that ArcelorMittal (MT) is seeking to purchase the company. However, industry analysts comment that such an acquisition is highly unlikely as ArcelorMittal would look out for raw material companies and not steelmaking operations company. On Aug. 20, Deutsche Bank reassigned a buy rating to the stock with a target price of $62 representing a 31.7%.

Similarly, other steel stocks like Schnitzer Steel Industries (SCHN) and AK Steel Holding (AKS) increased 5.6% and 3% respectively.

Stillwater Mining (SWC), the sole producer of palladium and platinum in the U.S., soared 6.7% in the past week. The company recently commented that palladium prices are likely to touch its peak as demand from carmakers increase and Russian inventories of the metal decline. Moreover, car manufacturers prefer palladium over platinum due to lower prices. The company which is 51% owned by Norilsk Nickel has been in the news lately as the stake is under possible sale to a third party.

Horsehead Holding (ZINC), producer of specialty zinc and zinc-based products, escalated 5.6% during the past week after the company swung to profit during the second quarter as compared to a loss a year ago. Net profit stood at $5.71 million as compared to loss of $9.3 million a year ago, while net sales increased to $98.54 million from $47.61 million earlier. On Aug. 17, Canaccord Genuity Corp reassigned a buy rating with a target price of $14 representing upside of 65.7%.

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