No. 4 -- Goldcorp (GG)
Foster: Amongst the largest companies we like Goldcorp the best because they have a growth profile. They're developing a huge mine in Mexico called Penasquito that is coming in on budget and on time. It looks very good to us and next year they'll be bringing Pueblo Viejo online, a joint venture they have with Barrick Gold (ABX) in the Dominican Republic. And beyond that there are a number of other projects to fill their pipelines, so we like the growth profile on Goldcorp and they're managing it very well.
The stock is up just 6% year to date, so just how undervalued do you think this stock really is?
Foster: In my view it's not that undervalued but because of their solid growth profile. I think they can trade at a premium to their peers because of their management and just the dynamics of the company. So I wouldn't call it a cheap stock but the outperformance would [be] in the high multiples the company can command.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV