With 2012 just beginning, now's a good time to gauge how the stocks you're interested in are likely to do this year and beyond. By knowing what stock analysts and fellow investors expect from a stock, you'll be smarter about whether you should buy it for your portfolio -- or sell it if you already own it.
Today, let's take a look at Paramount Gold & Silver
Forecasts on Paramount Gold & Silver
|Median Target Stock Price||$11.63|
|Normalized 2011 EPS Estimate||($0.13)|
|Normalized 2012 EPS Estimate||($0.03)|
|Expected Sales Growth, Fiscal 2013 vs. Fiscal 2012||929%|
Sources: S&P Capital IQ and Yahoo! Finance.
What will 2012 bring Paramount Gold & Silver?
Analysts and investors have lofty expectations for Paramount, although they're not in a big hurry. The target price that the single analyst following the company has pegged is about five times its current share price. Yet only in fiscal 2013 does that analyst expect to see a big ramp-up in production revenue.
One reason why so few professionals are willing to state an opinion about Paramount is that it doesn't yet have any revenue. Coeur d'Alene
Meanwhile, the company's Sleeper mine in Nevada represents an even more attractive carrot for those companies that might want to pursue Paramount. Having already boosted measured and indicated resources at Sleeper, Paramount is in a strong position to market the mine to big players in the area. Newmont Mining
Small players like Paramount are always inherently speculative and dependent on bullion prices. But even with no revenue, gold and silver are expensive enough that a major gold producer could give Paramount shareholders a big payday with a takeover bid. Regardless, though, Paramount is giving its investors plenty to look forward to in 2012 and beyond.
Read about another great mining stock in the Motley Fool's latest special report on gold, where we reveal the name of a tiny gold stock digging up massive profits. It's free but only available for a limited time, so click here to get your copy today.
Click here to add Paramount Gold & Silver to My Watchlist, which can find all of our Foolish analysis on it and all your other stocks.