9 Mining Stocks to Keep Buried

by Louis Navellier | December 14, 2011 1:21 pm

9 Mining Stocks to Keep Buried

Add the possibility of deflation to renewed European debt jitters, and you’ve got yourself a case for a decline in basic materials and precious metals. But don’t just take the latest news as an example. The majority of stocks that rely on the mining of basic materials have been on a downward tear ever since the August lows.

I watch more than 5,000 publicly traded companies with my Portfolio Grader[1] tool, ranking companies by a number of fundamental and quantitative measures. And this week, I’ve got nine mining stocks to keep buried.

Here they are, in alphabetical order. Each one of these stocks gets a “D” or “F” according to my research, meaning it is a “sell” or “strong sell.”

Alcoa (NYSE:AA[2]) is engaged with the mining, refining, smelting, fabricating and recycling of aluminum products. A drop of 42% for AA stock in the past 12 months has shareholders questioning what they initially saw in the stock. AA gets an “F” for earnings momentum, an “F” for the company’s ability to exceed consensus earnings estimates on Wall Street and an “F” for the magnitude in which earnings projections have increased over the past months in my Portfolio grader tool. For more information, view my complete analysis of AA stock[3].

ArcelorMittal (NYSE:MT[4]) shipped more than 85 million tons of steel in 2010. Despite such high volume, MT stock is down a discouraging 56% year-to-date. MT stock gets a “D” for operating margin growth, an “F” for the company’s ability to exceed consensus earnings estimates on Wall Street, an “F” for the magnitude in which earnings projections have increased over the past month, a “D” for cash flow and a “D” for return on equity in my Portfolio Grader tool. For more information, view my complete analysis of MT stock[5].

Freeport-McMoRan Copper & Gold (NYSE:FCX[6]) is known for copper, gold and molybdenum mining. Since the start of 2011, FCX stock is down 38%, compared to a gain of 2% for the Dow Jones in the same period. FCX gets a “D” for sales growth, a “D” for earnings growth, a “D” for earnings momentum and an “F” for the magnitude in which earnings projections have increased during the past month in my Portfolio Grader tool. For more information, view my complete analysis of FCX stock[7].

Gerdau (NYSE:GGB[8]) is a producer of long-rolled steel that has watched its stock value decrease nearly 48% since the start of 2011. GGB gets a “D” for operating margin growth, a “D” for earnings growth, a “D” for the magnitude in which earnings projections have increased over the past month and a “D” for return on equity in my Portfolio Grader tool. For more information, view my complete analysis of GGB stock[9].

Kinross Gold (NYSE:KGC[10]) explores for, acquires, develops and operates gold-bearing properties across the world. KGC makes the list with a 39% drop since Jan. 1. KGC stock gets a “D” for operating margin growth, a “D” for earnings growth, a “D” for the magnitude in which earnings projections have increased over the past month and a “D” for return on equity in my Portfolio Grader tool. For more information, view my complete analysis of KGC stock[11].

NovaGold Resources (NYSE:NG[12]) explores and develops mineral properties in Alaska and British Columbia. NG stock has dropped almost 38% year-to-date. NG gets an “F” for sales growth and an “F” for return on equity in my Portfolio Grader tool. For more information, view my complete analysis of NG stock.[13]

Mechel OAO (NYSE:MTL[14]) is an integrated mining and steel company in Russia. MTL stock is one of the biggest losers on this list, down 69% year-to-date. MTL gets an “F” for the company’s ability to exceed consensus earnings estimates on Wall Street and an “F” for the magnitude in which earnings projections have increased during the past month in my Portfolio Grader tool. For more information, view my complete analysis of MTL stock[15].

U.S. Steel (NYSE:X[16]) is a producer of integrated steel, flat-rolled and tubular products in the United States and Europe. A 56% drop year-to-date has ensured a place on this list for U.S. Steel. X gets an “F” for the magnitude in which earnings projections have increased over the past month, an “F” for cash flow and an “F” for return on equity in my Portfolio Grader tool. For more information, view my complete analysis of X stock[17].

Vale (NYSE:VALE[18]) is a metal and mining company based on Brazil with a wide portfolio of products. VALE stock has dipped 34% year-to-date. VALE stock gets a “D” for the magnitude in which earnings projections have increased during the past month, and a “D” for cash flow in my Portfolio Grader tool. For more information, view my complete analysis of VALE stock[19].

Get more analysis of these picks and other publicly traded stocks with Louis Navellier’s Portfolio Grader[20] tool, a 100% free stock-rating tool that measures both quantitative buying pressure and eight fundamental factors.

Endnotes:
  1. Portfolio Grader: http://navelliergrowth.investorplace.com/portfolio-grader/
  2. AA: http://studio-5.financialcontent.com/investplace/quote?Symbol=AA
  3. For more information, view my complete analysis of AA stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=aa&submit=submit&type=site
  4. MT: http://studio-5.financialcontent.com/investplace/quote?Symbol=MT
  5. For more information, view my complete analysis of MT stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=mt&submit=submit&type=site
  6. FCX: http://studio-5.financialcontent.com/investplace/quote?Symbol=FCX
  7. For more information, view my complete analysis of FCX stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=fcx&submit=submit&type=site
  8. GGB: http://studio-5.financialcontent.com/investplace/quote?Symbol=GGB
  9. For more information, view my complete analysis of GGB stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=ggb&submit=submit&type=site
  10. KGC: http://studio-5.financialcontent.com/investplace/quote?Symbol=KGC
  11. For more information, view my complete analysis of KGC stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=KGC&submit=submit&type=site
  12. NG: http://studio-5.financialcontent.com/investplace/quote?Symbol=NG
  13. For more information, view my complete analysis of NG stock.: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=ng&submit=submit&type=site
  14. MTL: http://studio-5.financialcontent.com/investplace/quote?Symbol=MTL
  15. For more information, view my complete analysis of MTL stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=mtl&submit=submit&type=site
  16. X: http://studio-5.financialcontent.com/investplace/quote?Symbol=X
  17. For more information, view my complete analysis of X stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=x&submit=submit&type=site
  18. VALE: http://studio-5.financialcontent.com/investplace/quote?Symbol=VALE.P
  19. For more information, view my complete analysis of VALE stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=vale.p&submit=submit&type=site
  20. Portfolio Grader: http://navelliergrowth.investorplace.com/portfolio-grader/

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