With 2012 just beginning, now's a smart 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 Stillwater Mining
Forecasts on Stillwater Mining
|Median Target Stock Price||$17|
|Fiscal 2011 EPS Estimate||$1.20|
|Fiscal 2012 EPS Estimate||$1.04|
|Expected Annual Earnings Growth, Next 5 Years||45%|
|CAPS Rating (out of 5)||****|
Source: Yahoo! Finance.
What will 2012 look like for Stillwater Mining?
Analysts and investors alike have mixed feelings about Stillwater's future. At least for 2012, analysts expect a significant drop in earnings. Yet their price target, which stands more than 50% above the current stock price, reflects the much higher growth expectations that those following the company have over the longer term.
If the first trading day of 2012 was any indication, though, Stillwater might have some hope to meet those high expectations. With ETFS Physical Platinum
Having seen shares of many miners fall disproportionately hard in 2011 compared with the performance of the metals they mine, Stillwater would benefit most from a reversal of that trend. Yesterday's trading action overall looked promising on that score, as both the Market Vectors Gold Miners and Market Vectors Junior Gold Miners outperformed gold bullion's jump. Rival North American Palladium
Platinum demand may prove to be the key to Stillwater's year. With platinum prices below gold, premium jeweler Tiffany
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Fool contributor Dan Caplinger doesn't own shares of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Market Vectors Gold Miners ETF and writing puts on Market Vectors Junior Gold Miners ETF. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool has a disclosure policy.