Forecast 1-Year Return - All 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.

Value Level: the price at which to enter a GTC limit order to buy on weakness. The letters mean: W-weekly, M-monthly, Q-quarterly, S-semiannual and A-annual.

Pivot: a level between a value level and risky level that should be a magnet during the time frame noted.

Risky Level: the price at which to enter a GTC Limit Order to sell on strength.

Analysis of the Gold Stocks

Looking at the overvalued and undervalued data, all six of the gold stocks are undervalued, with Kinross Gold ( KGC) the cheapest at 53.2% undervalued.

Five of the six gold stocks have a "4-Engine" buy rating. Harmony Gold ( HMY) was rated a buy until this morning, when the stock was downgraded to a "3-Engine" hold rating, according to

All six gold stocks lagged Comex gold and GLD, which are down 13.3% and 13.0%, respectively, over the last 12 months. KGC is the biggest loser, down 49.7%.

All of the gold stocks are projected to be higher over the next 12 months, led by Barrick Gold ( ABX), which is projected to rise by 8.1% over the next 12 months.

The P/E ratios are reasonable to cheap at between 8.4 times earnings for Gold Fields ( GFI) and 11.9 times for Newmont Mining ( NEM).

The 200-day simple moving averages are reasonable upside targets for the buy-rated names in anticipation that, as long as gold futures and GLD stay above their 200-day SMAs, there will be strength in gold shares towards their 200-day SMAs.

At the time of publication, the author had no positions in any of the investments mentioned.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
Richard Suttmeier has an engineering degree from Georgia Tech and a master of science from Brooklyn Poly. He began his career in the financial services industry in 1972 trading U.S. Treasury securities in the primary dealer community. In 1981 he formed the Government Bond Department at LF Rothschild and helped establish that firm as a primary dealer in 1986. Richard began writing market research in 1984 and held positions as market strategist at firms such as Smith Barney, William R Hough, Joseph Stevens, and Rightside Advisors. He joined in 2008 producing newsletters covering the U.S. capital markets, and a universe of more than 7,000 stocks. Richard employs a "buy and trade" investment strategy and can be reached at

If you liked this article you might like

Here's What Stocks You Want to Own in the Event of a War With North Korea

Gold, Google, SEC Hack - 5 Things You Must Know Before the Market Opens Thursday

Here's the Hottest New Way to Get Rich With Gold

How to Invest in Unstoppable Gold Prices

Novice Trade: Gold ETF