Cliffs Natural Resources ( CLF), a miner of iron ore metallurgical coal to the steel industry, had a banner year in 2011. Firm prices for its commodities fueled solid 40% gross margins, which led to profits of more than $11 a share. Yet the positive backdrop has melted away, and profits are expected to fall by around 40% this year before rebounding to around $7 or $8 a share in 2013 and 2014. >>5 Materials Stocks Under $10 on the Rise Investors decided to abandon ship, and shares of CLF have fallen from $100 in the spring of 2011 to a recent $38, yet analysts at Citigroup now think the selling has been overdone, and figure shares will trade back up in short order. They think investors should focus on that profit rebound for 2013 and 2014: "Typically we view 10x forward P/E as the appropriate multiple for mid-cycle earnings. We apply a 10.5x multiple on our '13 estimate to arrive at a target price of $71."