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.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $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
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV