This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Prospecting for Gold Stocks

NEW YORK ( TheStreet) -- The uncertainty regarding whether or not the U.S. economy will fall off the fiscal cliff should be giving Comex gold a bid, but instead, the precious metal has been moving sideways to down since trading as high as $1,798.1 on Oct. 5 and as low as $1,672.5 on Nov. 5. This price action still has gold above its 200-day simple moving average at $1663.4.

When prospecting for gold mining stocks using I found seven that have "four-engine" buy ratings. All seven are undervalued by 18.4% to 45.2%. One has a gain of 41.1% over the last 12 months, while the other six are lower by 16.0% to 28.8%. By comparison Comex gold is up 6.9% over the last 12 months. Three of seven gold miners have single-digit 12 month trailing price-to-earnings ratios, three have reasonable P/E, while one has an elevated P/E.

Fundamentally ValuEngine shows the basic industries sector just 3.2% undervalued with the gold mining industry 10.5% undervalued, which is a reason to consider gold shares over Comex gold. The last time I made this type of comparison was on Sept. 10 when I wrote Gold Stocks Continue to Lag Gold .

With the gold mining industry undervalued and with most gold mining shares lagging gold significantly, investors considering buying gold should prospect among the gold miners I profiled today.

Reading the Table

OV/UN Valued: The stocks with a red number are undervalued by this percentage. Those with a black number are overvalued by that percentage according to ValuEngine.

VE Rating: A "1-engine" rating is a strong sell, a "2-engine" rating is a sell, a "3-engine" rating is a hold, a "4-engine" rating is a buy and a "5-engine" rating is a strong buy.

Last 12-Month Return (%): Stocks with a red number declined by that percentage over the last 12 months. Stocks with a black number increased by that percentage.

Forecast 1-Year Return: Stocks with a red number are projected to decline by that percentage over the next 12 months. Stocks with a black number in the table are projected to move higher by that percentage over the next 12 months.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
GFI $2.89 13.00%
GG $12.90 6.30%
KGC $1.83 8.93%
NEM $17.07 7.77%
AU $8.50 6.60%


Chart of I:DJI
DOW 16,472.37 +200.36 1.23%
S&P 500 1,951.36 +27.54 1.43%
NASDAQ 4,707.7750 +80.6910 1.74%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs