NEW YORK ( TheStreet) -- Today I profile eight gold mining stocks that have become tarnished as their stock prices fall. Three are still above their 2012 lows, but five have been setting new multi-year lows almost daily.
Weakness in gold mining shares is telling us that Comex Gold could be at least headed for a test of its December 2011 post-bubble low at $1523.9. This scenario is enhanced by the fact that all eight gold miners profiled today are well below their 200-week simple moving averages, while gold is not as shown in the weekly chart.
Comex gold has been above its 200-week SMA since February 2002 and this key moving average is currently at $1417.5, which is the downside given a trend below the December 2011 low at $1523.9. Gold has been trading back and forth around my annual pivot at $1599.9 so far this year.
Chart Courtesy of Thomson/Reuters At www.ValuEngine.com we show that 58.6% of all stocks are overvalued with 15 of 16 sectors overvalued with 8 overvalued by double-digit percentages. Gold mining stocks are in the one sector that's undervalued, which is basic materials, undervalued by 7.0%. The gold mining industry is undervalued by 32.7% with today's eight stocks undervalued by 29.4% to 56.7%. Performance wise, 7 of 8 stocks are down 29.5% to 56.8% over the last twelve months.
Reading the TableOV/UN Valued: Stocks with a red number are undervalued by this percentage. Those with a black number are overvalued by that percentage according to ValuEngine.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
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
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts