Commodity Earnings: 10 Stocks With Upside

NEW YORK (TheStreet) -- Consol Energy (CNX), U.S. Steel (X) and Kaiser Aluminum (KALU) are among the ten stocks reporting quarterly earnings next week.

These 10 stocks have an upside potential of 3% to 35% and a mean upside value of 22%. Based on analysts' 12-month price targets, superior buy and hold ratings, these stocks are likely to outperform peers.

Among the 10 stocks, Kaiser Aluminum ( KALU), Allegheny Technologies ( ATI) and Arch Coal ( PVR), have dividend yields of 2%, 1.3% and 1.1%.
10. U.S. Steel ( X) is an integrated steel producer of flat rolled and tubular products with operations in North America and Europe. The company's major raw materials are iron ore and coke. U.S. Steel will announce its first quarter results on April 26.

Net loss for 2011 first quarter is forecast at $49.25 million on sales of $4.86 billion, compared to net loss of $161.95 million on $3.89 billion sales recorded during 2010 first quarter, according to analysts polled by Bloomberg. Gross margin during the quarter is seen improving to 6.50% as compared to 2.36% in the year-ago period.

Of the 13 analysts covering the stock, 54% recommend a buy, while 38% suggest a hold. Analysts polled by Bloomberg expect the stock to gain an average 24% to $65.3 in value from current levels.

9. Arch Coal ( ACI) engages in the mining, processing and marketing of low-sulfur coal from its surface, underground and auger mines located across the western U.S. and in the central Appalachian region. Arch Coal sells its coal mainly to electric utilities. The company will announce its first quarter results on April 26.

Net income for 2011 first quarter is estimated at $48.81 million on sales of $828.8 million, higher than $5.19 million recorded on $711.9 million sales for the same period in 2010, according to analysts polled by Bloomberg. Earnings per share are forecast at 32 cents for the quarter, compared to 3 cents registered in 2010 first quarter. Meanwhile, return on assets is seen at 1.79% as compared to 0.22% in the year-earlier period.

Of the 27 analysts covering the stock, 52% recommend a buy, while 44% rate a hold. Analysts polled by Bloomberg expect the stock to gain an average 20% to $40.1 from current levels over the next 12 months.

8. Carpenter Technology ( CRS) manufactures, fabricates and distributes stainless steel, titanium and specialty metal alloys. It processes basic metal alloying elements into finished products, besides manufacturing engineered products like ceramics and metal-injected molded designs. The company will announce its first quarter results on April 26.

According to analysts polled by Bloomberg, net income for the first quarter is estimated at $7.6 million on sales of $351.7 million, as compared to a net loss of $9.3 million recorded on $233.7 million sales for the same period in 2010. Earnings per share for the quarter are forecast at 17 cents, improving from a loss of 21 cents in the year-earlier quarter. Meanwhile, return on assets is expected at 1.21% as compared to 0.80% in the year-ago period.

Fifty-percent of the 10 analysts covering the stock recommend a buy, while 40% rate a hold. Analysts polled by Bloomberg expect the stock to gain an average 10% to $48.7 from current levels over the next 12 months.

7. Allegheny Technologies ( ATI) produces specialty materials like titanium and its alloys, nickel-based alloys, superalloys, stainless and specialty alloys, grain-oriented electrical steel, among others. The company will report its first quarter results on April 27.

Analysts polled by Bloomberg expect the company to report first quarter 2011 net income of $61.33 million on sales of $1.11 billion, as compared to $0.24 million recorded on $899.4 million sales during the same period in 2010. Earnings per share for the quarter are forecast at 50 cents, up from 24 cents registered in 2010 first quarter. Meanwhile, gross margin is seen at 19%, improving from 13.5% in the year-ago period.

Of the 10 analysts covering the stock, 60% recommend a buy, while 20% rate a hold. Analysts polled by Bloomberg expect the stock to gain an average 2% to $70.1 from current levels over the next 12 months.

6. International Coal Group ( ICO) engages in coal mining and has operations in the northern and central Appalachia and the Illinois Basin. The company will report first quarter 2011 results on April 27.

Net income for first quarter 2011 is estimated at $21.82 million on sales of $316.3 million, growing from $3.18 million on sales of $288.6 million for the same period in 2010, as per analysts polled by Bloomberg. Earnings per share are forecast at 10 cents for the quarter, increasing 389% from 2010 first quarter.

Sixty-percent of the 10 analysts covering the stock rate a buy on it, while the remaining suggest a hold. There are no sell ratings on the stock. Analysts polled by Bloomberg foresee the stock gaining almost 18% to $12.6 from current levels over the next 12 months.

5. Kaiser Aluminum ( KALU) is involved in the production of alumina, primary aluminum and other fabricated aluminum products. Furthermore, it supplies primary aluminum to the domestic and international markets. The company will announce its first quarter results on April 27.

First quarter 2011 net income is estimated at $9.30 million on sales of $300 billion, as compared to $9.00 million recorded on $267.5 million sales for the same period in 2010, analysts polled by Bloomberg forecast. Earnings per share are estimated at 54 cents for the quarter as compared to 47 cents registered in 2010 first quarter.

Of the four analysts covering the stock, 50% recommend a buy, while the remaining suggest a hold. There are no sell ratings on the stock. Data from Bloomberg has analysts expecting the stock to gain almost 28% to $61 from current levels over the next 12 months.

4. Consol Energy ( CNX) produces high-BTU bituminous coal and coalbed methane gas and has its properties in the northern and central Appalachian basin, other western basins, and oil and gas properties in the Appalachian and Illinois Basins. The company will report first quarter 2011 results on April 28.

Analysts polled by Bloomberg expect the company to report net income for 2011 first quarter at $177.3 million on sales of $1.4 billion, improving from $161.1 million recorded on $1.22 billion sales during the same period in 2010. Earnings per share for the quarter are forecast at 78 cents. Return on assets for is expected to increase to 43% from 16.8% recorded in the year-ago quarter.

Of the 26 analysts covering the stock, 73% recommend a buy, while 23% rate a hold. Analysts polled by Bloomberg foresee the stock gaining almost 21% to $60.8 from current levels over the next 12 months.

3. Cliffs Natural Resources ( CLF) designs, develops, and manufactures linear motors and special electric motors. The company also builds customized linear motors for a variety of applications and industries in China and for original equipment manufacturers (OEMs) worldwide. The company will announce its first quarter results on April 28.

Net income for 2011 first quarter is estimated at $337.2 million on sales of $1.39 billion, as compared to $79.91 million recorded on $727.7 million sales for the same period in 2010, as per analysts polled by Bloomberg. Earnings per share are forecast at $2.25 for the quarter, growing from 59 cents in 2010 first quarter. Meanwhile, dividend per share for the quarter is seen rising to 14 cents per share from 9 cents earlier.

Of the 11 analysts covering the stock, 73% recommend a buy, while the remaining rate a hold. There are no sell ratings on the stock. Analysts surveyed by Bloomberg expect the stock to gain 34% to $128.3 from current levels over the next 12 months.

2. Reliance Steel & Aluminum ( RS) distributes and processes steel and aluminum and has operations in Spain. The companyâ¿¿s major products include carbon, alloy, stainless and specialty steel, aluminum, brass and copper. Reliance Steel & Aluminum will announce its first quarter results on April 28.

Analysts polled by Bloomberg expect first quarter 2011 net income of $76.5 million on sales of $1.84 billion, compared to $44.65 million recorded on $1.45 billion sales for the same period in 2010. Earnings per share for the quarter are forecast at $1.05, improving from 60 cents in 2010 first quarter. Meanwhile, gross margin for the quarter is seen rising to 25.83% from 24% earlier. In addition, dividend per share is expected to increase by 1-cent to 11 cents per share.

Of the nine analysts covering the stock, 89% recommend a buy while the remaining suggest a hold. There are no sell ratings on the stock. Analysts polled by Bloomberg expect the stock to gain an average 17% to $66.3 from current levels over the next 12 months.

1. Hecla Mining ( HL) is involved in the exploration, development and mining of precious metals, gold and silver, and has its operations spread across the U.S. and Mexico. The company will report its first quarter results on April 28.

Net income for the first quarter is estimated at $32 million on sales of $118.7 million, as compared to $17.2 million recorded on sales of $79.88 million for the same period in 2010, as per analysts polled by Bloomberg. Earnings per share are forecast at 12 cents for the quarter, increasing 75% from the year-ago quarter.

Of the 10 analysts covering the stock, 30% recommend a buy while 60% rate a hold. Analysts polled by Bloomberg expect the stock to gain an average 26% to $11.5 from current levels over the next 12 months.

>>To see these stocks in action, visit the 10 Commodities Stocks With Upside portfolio on Stockpickr.

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