We'll be the first to admit that this is a very naive way to find undervalued companies. Analysts don't always have the best track record, and price targets may not reflect the latest information on a stock. But the goal here is to give you a starting point for your own analysis.
Analysts seem to think these companies are deeply undervalued, what do you think? Full details below.
To provide some perspective, we'll also include a discussion on recent developments for each company.
Price target data sourced from Finviz.
Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research. Note: The numbers on top of items represent the forward P/E ratio, if available.
The list has been sorted by the discount to analyst target price.
1. Yamana Gold, Inc. (AUY): Gold Industry. Market cap of $8.25B. Price at time of writing $11.28 vs. target price of $15.66 (discount of -38.83%). Short float at 0.79%, which implies a short ratio of 0.66 days. The stock has gained 5.9% over the last year.
- Recent Developments: Announced 200% dividend increase and special dividend (Nov 2010). Reaffirmed FY 2010 production guidance (Nov 2010).
2. Jaguar Mining Inc. (JAG): Gold Industry. Market cap of $500.39M. Price at time of writing $6.09 vs. target price of $8.43 (discount of -38.42%). Short float at 5.57%, which implies a short ratio of 3.82 days. The stock has lost -42.88% over the last year.
- Recent Developments: None.
3. Northern Dynasty Minerals Ltd. (NAK): Gold Industry. Market cap of $1.7B. Price at time of writing $18.40 vs. target price of $25.2 (discount of -36.96%). Short float at 0.65%, which implies a short ratio of 0.67 days. The stock has gained 118.6% over the last year.
- Recent Developments: None.
4. Harmony Gold Mining Co. Ltd. (HMY): Gold Industry. Market cap of $4.53B. Price at time of writing $10.59 vs. target price of $14.17 (discount of -33.81%). Short float at 0.85%, which implies a short ratio of 1.6 days. The stock has gained 7.43% over the last year.
- Recent Developments: Harmony Gold Mining Co. and Newcrest Mining Limited's Hidden Valley JV denies mine nuisance allegation, will vigorously defend the litigation should it proceed (Jan 2011)..
5. Eldorado Gold Corp. (EGO): Gold Industry. Market cap of $8.85B. Price at time of writing $16.14 vs. target price of $21.58 (discount of -33.71%). Short float at 0.76%, which implies a short ratio of 0.93 days. The stock has gained 24.21% over the last year.
- Recent Developments: Announced it expects gold production will continue to grow by an additional 15% to 20% for fiscal 2011, expects to maintain one of the lowest costs in the industry (Jan 2011).
6. Fronteer Gold Inc (FRG): Gold Industry. Market cap of $1.36B. Price at time of writing $9.47 vs. target price of $12.57 (discount of -32.73%). Short float at 0.91%, which implies a short ratio of 0.97 days. The stock has gained 107.59% over the last year.
- Recent Developments: Announced that it has entered into an asset sale agreement under which Paladin Energy Ltd. will acquire 100% of the uranium assets of Aurora Energy Resources Inc., a wholly owned subsidiary of Fronteer Gold (Dec 2010).
7. Barrick Gold Corporation (ABX): Gold Industry. Market cap of $45.95B. Price at time of writing $46.70 vs. target price of $61.97 (discount of -32.7%). Short float at 0.86%, which implies a short ratio of 0.98 days. The stock has gained 29.14% over the last year.
- Recent Developments: Reaffirmed FY 2010 production guidance (Sep 2010).
8. Newmont Mining Corp. (NEM): Gold Industry. Market cap of $27.55B. Price at time of writing $56.26 vs. target price of $74.28 (discount of -32.03%). Short float at 2.68%, which implies a short ratio of 1.92 days. The stock has gained 27.41% over the last year.
- Recent Developments: Northern Tiger Resources Inc. announced the signing of a non-binding letter of intent to acquire the Sprogge property from Alexco Resource Corp. and Newmont Canada Corporation (Dec 2010). Announced that its subsidiary, Newmont Mining Corporation of Canada Limited acquired 2,000,000 units of Loncor Resources Inc. by way of private placement (Dec 2010).
9. IAMGOLD Corp. (IAG): Gold Industry. Market cap of $6.84B. Price at time of writing $18.50 vs. target price of $24.22 (discount of -30.92%). Short float at 0.5%, which implies a short ratio of 0.6 days. The stock has gained 31.35% over the last year.
- Recent Developments: Reaffirmed FY 2011 production guidance (Jan 2011). Increased dividend by 33% (Dec 2010).
10. AngloGold Ashanti Ltd. (AU): Gold Industry. Market cap of $16.64B. Price at time of writing $43.59 vs. target price of $55.51 (discount of -27.35%). Short float at 1.55%, which implies a short ratio of 3.01 days. The stock has gained 14.53% over the last year.
- Recent Developments: Received CDN$70 million from sale of B2Gold Corp. shares (Nov 2010).
11. Compania de Minas Buenaventura SA (BVN): Gold Industry. Market cap of $10.34B. Price at time of writing $41.53 vs. target price of $51.01 (discount of -22.83%). Short float at 0.32%, which implies a short ratio of 0.52 days. The stock has gained 26.28% over the last year.
- Recent Developments: Focus Ventures Ltd and Compania de Minas Buenaventura SA completed agreement for Minas Chanca Silver project (Jan 2011).
12. Aurizon Mines Ltd. (AZK): Gold Industry. Market cap of $993.98M. Price at time of writing $6.35 vs. target price of $7.75 (discount of -22.05%). Short float at 1.78%, which implies a short ratio of 4.54 days. The stock has gained 56.74% over the last year.
- Recent Developments: Announced the signing of an option agreement with Midland Exploration Inc. on the Patris gold property, held 100% by Midland (Dec 2010). Reaffirmed long term production guidance (Oct 2010).
13. Gammon Gold, Inc. (GRS): Gold Industry. Market cap of $999.79M. Price at time of writing $7.30 vs. target price of $8.74 (discount of -19.73%). Short float at 3.26%, which implies a short ratio of 2.87 days. The stock has lost -23.49% over the last year.
- Recent Developments: Aurion Resources Ltd announced that is has signed a binding Letter of Intent with Gammon Gold, Inc. giving Gammon the option to earn up to a 70% interest in Aurion's 100% owned La Bandera gold project in Durango (Dec 2010). Reaffirmed FY 2010 production guidance (Dec 2010).
14. Agnico-Eagle Mines Ltd. (AEM): Gold Industry. Market cap of $11.31B. Price at time of writing $67.94 vs. target price of $81.16 (discount of -19.46%). Short float at 5.12%, which implies a short ratio of 3.59 days. The stock has gained 27.44% over the last year.
- Recent Developments: Announced cash dividend increased by 256% (Dec 2010).
15. Gold Fields Ltd. (GFI): Gold Industry. Market cap of $11.24B. Price at time of writing $15.95 vs. target price of $19.05 (discount of -19.44%). Short float at 0.71%, which implies a short ratio of 1.36 days. The stock has gained 31.6% over the last year.
- Recent Developments: Announced that production for the December quarter 2010 is expected to be approximately 900,000 oz, which is similar to last quarter and in line with expectations (Jan 2011).
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