5 Emerging Market Mining Stocks With Upside

NEW YORK (TheStreet) -- The recovery in the global economy, backed by liberal doses of fiscal support announced by various governments, has sustained buying interest in metal and mining companies. We have identified five emerging market mining stocks that can deliver returns in the range of 10% to 30% during 2011: Sterlite Industries(SLT), Vale(VALE), Gerdau(GGB), Companhia Siderurgica Nacional(SID), and Puda Coal(SLT).

In contrast, mining majors BHP Billiton(BHP) and Rio Tinto(RIO) have upsides of 8%-10%, according to consensus estimates of 12-month target prices compiled by Bloomberg.

A demand surge for commodities worldwide ensured upswings in most metal prices. Gold and silver had a good run, delivering 25% and 70% returns during the past one year, respectively. Among other metals, copper and nickel churned more than 30% each during the same period.

Analysts are positive on metal prices in the short- to medium-term as the liquidity crunch has eased, primarily due to the quantitative easing measures rolled out by several central banks. Besides, a revival in developed economies like U.S. and a sustained push from emerging markets would augur well for mining companies. Overall, metal and mining companies from emerging markets are expected to do well on increased domestic demand.

These stocks are stacked in terms of upside.