BOSTON (TheStreet) -- Gold has remained at the forefront of the market, despite ongoing calls for a top. The metal rallied 27% in 2010. It is down modestly in 2011, but with elevated prices, gold producers are attractive stocks as their profit margins are still at cyclical highs. TheStreet's quantitative equity model, which evaluates fundamentals and share-price performance, ranks the "buy." It expects them to deliver solid risk-adjusted returns in the next 12 months. They are ordered by net score, from good to great.
5. Eldorado Gold (EGO) is an exploration, mining and processing company, with gold mining interests in Turkey, Greece and China. Its stock has risen 33% in 12 months, but has corrected 3.3% in the past three.
Eldorado's fourth-quarter net income advanced 31% to nearly $44 million, but earnings per share stagnated at eight cents because shares outstanding rose by 11 million. Revenue surged 47% to $213 million. The gross margin widened from 60% to 65%, but the operating margin contracted from 39% to 37%. Eldorado held $375 million of cash and $167 million of debt at fourth-quarter's end. Its stock is costly based on cash flow, trading at a multiple of 31, an 85% industry premium. But, it's cheap based on its book value multiple of 3 and cash flow multiple of 11. Of analysts covering Eldorado, 70% rank its stock "buy." Raymond James predicts that the stock will advance 69% to $28 in 12 months. Rodman & Renshaw forecasts that it will rise 18% to $19.50.
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