4. Metalico ( MEA) is a scrap metal processor and the largest fabricator of lead-based products.
The stock is set to benefit from robust scrap metal demand from emerging economies, especially China and India. Commenting on third-quarter earnings, President and CEO Carlos E. Agueero said, "We remain focused on margin generation and expanding the business while meeting or exceeding performance goals. From a macro perspective, we remain bullish on commodity markets for both base metal and precious metal prices in the fourth quarter and into 2011." He added, "From a macro perspective, we remain bullish on commodity markets for both base metal and precious metal prices in the fourth quarter and into 2011. We anticipate that metal prices will be supported by recovering global manufacturing demand coupled with restrained scrap supply and augmented by accelerating weakness in the U.S. dollar and other major currencies, which favors holding real assets such as metals and other commodities." Earnings are estimated at 36 cents in 2010 and 46 cents in 2011, a significant turnaround from a loss of 8 cents reported for 2009, according to analysts polled by Bloomberg. During the past three months, the stock gained around 40%. Of the four analysts covering the stock, three recommend buying and one rates selling. At $5.63, analysts anticipate an upside of 33% for 2011, based on the consensus target price of $7.5.