NEW YORK (TheStreet) -- Metals & mining stocks are trading higher on the Fed's quantitative easing decision. In addition to an anticipated decline in the dollar index, narrowing inventory levels are supporting higher metal prices. Copper inventory on the London Metal Exchange (LME) has hit 52-week lows.

These fundamentals may support metal stocks to outperform broader markets in November. During October, the S&P 500 Index gained 3.7%, while the SPDR S&P Metals and Mining ETF ( XME) surged 4.7%, outperforming the broader markets.

The following 10 stocks will likely surge on an expected upside in the metals and mining space. Among others, although Metalico ( MEA) and Platinum Group Metals ( PLG) have 100% buy ratings, we did not include these stocks in this list, as only four analysts cover these stocks.

Analysts prefer these 10 stocks because of their competitive positioning and stable cash flow generation abilities, coupled with a favorable outlook for base metals. In addition, these stocks are expected to gain in the range of 8%-27% over the next 12 months with a mean upside value of around 20%.

The stocks are ordered on percentage of buy ratings, from great to greatest.

10. Freeport-McMoRan Copper & Gold ( FCX - Get Report), a Phoenix-based international mining company, operates large, long-lived, geographically diverse assets with significant proven and probable reserves of copper, gold, and molybdenum. The company has a portfolio of operating, expansion and growth projects in the copper industry and is the world's largest producer of molybdenum.

Since mid-July the stock gained around 60.9% on the robust outlook for copper.Going forward, the company's African operations will likely boost earnings. Freeport holds a 57.7% interest in Tenke Fungurume mine, a major new copper-cobalt operation located in the Katanga province of the Democratic Republic of Congo. Freeport targets to produce 250 million pounds of copper and 18 million pounds of cobalt per annum at Tenke. The high grades of copper and cobalt ore at Tenke should help the company to breakeven unit costs once full capacity is reached, Zacks Investment Research reports.

Improved molybdenum market conditions helped Freeport to ramp up capacity utilization at Henderson mine to 90% from 60% in 2009. For the full year, the company anticipates sales to surge around 70%. Analysts polled by Bloomberg anticipate earnings of $8.57 per share for 2010 and $10.03 per share for 2011, a significant turnaround from losses of $29.72 per share in 2008 and earnings of $5.86 per share in 2009.

During the past 12 months, the return-on-equity has been a remarkable 43.6%, far ahead of other mining giants. Of the 18 analysts covering the stock, 13 recommend buying, 4 rated holding, while one advised selling the stock.

9. Ternium ( TX - Get Report), a stock selling at deep discount, is a Luxembourg-based steel company with iron ore operations in Central and South America.

As an integrated steel producer owning iron ore assets, the company fares much better than its competitors. Early October, Goldman Sachs upgraded the stock to neutral saying the stock does not face pricing pressure, unlike Latin American steel companies Gerdau ( GGB) and Companhia Siderurgica Nacional ( SID).

During the past 12 months, the return-on-equity has been 13.2%, highest among major steel producers. In comparison, U.S. Steel ( X), AK Steel ( AKS), Nucor ( NUE), ArcelorMittal ( MT), and Worthington Industries ( WOR) have RoEs of -29.3%, -8.1%, -3.8%, 0.2%, and 6.4%, respectively.

The stock has the lowest EV to EBITDA among the major steel producers listed in the U.S. Of the 12 analysts covering the stock, 9 recommend buying and 3 rated holding.

8. Cliffs Natural Resources ( CLF - Get Report), a stock selling at deep discounts and listed among the top 10 mining stocks with upside, is a diversified mining and natural resources company. The company is the largest producer of iron ore pellets in North America, and has operations in South America and Australia, as well.

The stock is trading at an attractive forward price-to-earnings multiple of 9.4, despite surging around 51.9% since early July. During the past 12 months, the return-on-equity has been 26.0%, ahead of other U.S.-based mining giants. In comparison, Peabody Energy ( BTU - Get Report), Alcoa ( AA), Consol Energy ( CNX), and Alpha Natural Resources ( ANR) have ROEs of 15.9%, -2.1%, 15.7%, and 2.9%, respectively.

For the third quarter, the company's revenues doubled to $1.3 billion, while operating income surged 383% from the third quarter of 2009. Analysts polled by Bloomberg expect the company to report earnings of $6.92 per share for 2010 and $9.24 per share for 2011, a significant turnaround from earnings of $1.63 per share in 2009.

Of the 12 analysts covering the stock, 9 recommend buying and 3 rated holding. Over the past one year, the stock surged 92%, while peers returned only 30%.

7. Goldcorp ( GG) is a Canada-based gold producer engaged in exploration, development and operations of precious metal mines in Canada, the U.S., Mexico, and Central and South America.

During the final week of October, Goldcorp doubled its annual dividend to 36 cents per common share, payable 3 cents a month. "Goldcorp's current financial strength and growing cash flows enable us to significantly increase our dividend while also executing on our plan to deliver 50% production growth over the next five years," said Chuck Jeannes, the company's President and CEO.

Goldcorp anticipates total cash costs below its original guidance of $350 per ounce, on a by-product basis, while maintaining its production guidance of 2.55 million ounces this year. For the first nine months, cash costs have been around $297 per ounce.

Analysts polled by Bloomberg expect the company to report earnings of $1.71 per share for 2010 and $1.78 per share for 2011, a significant turnaround from earnings of 33 cents per share in 2009. Of the 21 analysts covering the stock, 16 recommend buying, 4 rated holding, and one advised selling.

6. Teck Resources ( TCK) is an integrated natural resource company with activities in mining, smelting and refining. The company mines copper, zinc, molybdenum, gold, and metallurgical coal in the U.S., Canada, Peru, and Chile.

Analysts at JP Morgan maintain overweight rating on the stock because of its exposure to high-growth emerging markets through copper, coking coal, and zinc exports. The recent dividend increase reflects limited debt maturities until 2014, lowered interest expense via refinancing, and robust metal and coal fundamentals driving free cash flow yield estimated at 13%, according to analysts.

The company is trading at price-to-earnings of 9.55 times its estimated 2011 earnings. In comparison, Freeport and Southern Copper ( SCCO) are trading at multiples of 10.33, and 14.97, respectively.

Over the past one year, the stock surged 56% while peers returned only 18%. Of the 18 analysts covering the stock, 14 recommend buying, 3 rated holding, and one advised selling.

5. Peabody Energy ( BTU - Get Report) is the world's largest private-sector coal miner. The company's coal products fuel around 10% of U.S. electricity generation and 2% of global electricity generation.

During the third-quarter earnings release on October 19, Peabody raised its EBITDA and EPS targets on robust demand from emerging markets. "Peabody believes that the global coal industry is in the early stages of a long-term super cycle, led by China and India. Peabody's access to these key markets represents significant value creation opportunity," said Gregory H. Boyce the company's chairman and CEO.

Over the next five years, the world requires coal-fueled generation capacity of 390 gigawatts, fueled by 1.2 billion tonnes of additional coal annually, while global steel consumption will increase by more than 30%, requiring an additional 300 million tonnes of metallurgical coal, according to Peabody.

These demand estimates provide a case for investing in the sector, in particular Peabody with its production ramping up. The company's pipeline of metallurgical and thermal coal projects will boost its high-quality coal production in Australia to 35-40 million tons by 2014 from 18-29 million tons expected for 2011.

Analysts polled by Bloomberg anticipate a jump in Peabody's earnings per share to $3.05 and $4.53 in 2010 and 2011, respectively, from $1.64 reported in 2009. Of the 25 analysts covering the stock, 20 recommend buying, 4 rated holding, and one advised selling.

4. Brazil-based VALE ( VALE - Get Report), a stock selling at deep discount, is a metals and mining giant with operations spanning across more than 50 countries.

The company maintains its bullish outlook on commodity demand from China, based on the country's domestic demand and Beijing's initiatives to spur mid-segment housing. Going forward, the company will continue to focus on its core business of iron ore, while looking for opportunities to boost copper, coal, and fertilizer operations with a capex budget of $24 billion for 2011. The company has raised its stake in its fertilizer unit Vale Fertilizantes after acquiring shares held by Mosaic ( MOS) for $1.03 billion.

During August, Vale announced a dividend of $4.0 billion for 2010, above the consensus estimate of $2.8 billion. In addition, the management has approved a share buyback plan worth $2.0 billion over the next six months, the first share buyback since October 2008. This underscores the management's confidence in the cash flow generation abilities of the company and that the shares are undervalued.

For the third quarter, strong iron ore prices and volumes boosted Vale's EBITDA to $8.8 billion, 6.2% above the consensus estimate. For the full year and 2011, the company is set to report earnings of BRL4.40 and BRL5.60, respectively, up from BRL1.97 reported for 2009.

The company is trading at price-to-earnings of 7.54 times its estimated 2011 earnings. In comparison, Rio Tinto ( RIO), BHP Billiton ( BHP), and AngloGold Ashanti ( AU) are trading at 7.95, 16.18, and 13.68, respectively. Of the 25 analysts covering the stock, 20 recommend buying, 5 rated holding.

3. Steel Dynamics ( STLD - Get Report) is engaged in steel production, metals recycling, and ferrous resources operations.

Investments in growth projects and raw material integrations will likely position the company on an eventual upturn, JP Morgan reports. Analysts polled by Bloomberg anticipate the company to report earnings of 71 cents per share for 2010 and $1.33 per share for 2011, a significant turnaround from a loss of 4 cents per share in 2009.

The stock offers an attractive dividend yield of 2.1%, ranking next to Nucor's 3.7% and Worthington's 2.8%, among the major steel producers listed in the U.S. In comparison, U.S. Steel, AK Steel, and Schnitzer Steel ( SCHN) offer dividend yields of 0.7%, 1.4%, and 0.15%, respectively. Of the 11 analysts covering the stock, 9 recommend buying, 2 rated holding.

2. Barrick Gold ( ABX) is engaged in the exploration, development, and operation of gold mines in the U.S., Canada, South America, Australia, and Africa. The company also produces copper and holds interests in oil and gas properties in Canada.

For the third quarter, Barrick Gold reported earnings of 83 cents per share, in comparison to a loss of $6.07 per share during the year-ago period. Higher-than-expected gold production in North America offset minor shortfalls in South America and Africa. For the full year, Barrick gold is likely to report earnings of $3.15 per share, in comparison to a loss of $4.84 in 2009.

Of the 27 analysts covering the stock, 23 recommend buying, 2 rated holding, and 2 advised selling. The stock trades at a price-to-earnings multiple of 15.3, lower than many of its peers. Goldcorp ( GG), Newmont Mining ( NEM), Kinross Gold ( KGC), Agnico-Eagle Mines ( AEM), Gold Fields ( GFI), and Yamana Gold ( AUY) have ROEs of 8.1%, 18.2%, 8.6%, 9.3%, 8.8%, and 3.9%, respectively.

1. North American Palladium ( PAL) is an exploration and production company focused on the production of palladium and gold. The company's flagship mines Lac des Iles and Sleeping Giant are located in Ontario and Quebec, respectively.

In the current scenario of growing deficit for the platinum group metals, North American Palladium will likely benefit from increased production going forward, in comparison to counterparts Stillwater Mining ( SWC) and Platinum Group Metals ( PLG).

Preliminary assessment of the Offset Zone in Lac des lles mine was positive, signaling a production boost. The stock rallied nearly 58.4% since August 24. In comparison, Stillwater Mining and Platinum Group Metals gained 43.6% and 20.0%, respectively, during the same period.

Of the 8 analysts covering North American Palladium, 7 recommend buying and one advised selling.