With half of 2012 in the record books, it's important to take a look at whether the stocks that interest you can live up to their full potential. By making sure you know about a company's future plans and possible challenges, you can make a better decision about whether it's a smart investment for your portfolio.
Today, let's take a look at North American Palladium
Stats on North American Palladium
|Average Stock Price Target||$3.96|
|2012 EPS Estimate||$0.01|
|2013 EPS Estimate||$0.21|
|2012 Sales Growth Estimate||14.7%|
|2013 Sales Growth Estimate||27.8%|
|CAPS Rating (out of 5)||****|
Source: Yahoo! Finance.
What will the rest of 2012 bring for North American Palladium?
Platinum-group metals prices dictate profit levels for North American Palladium and rival Stillwater Mining
But some see a stronger rebound coming. In its second-quarter commodity update, Citi projected that palladium prices would top $800 for 2012 and weigh in at an average of $925 in 2013. That would go a long way toward North American Palladium meeting analysts' earnings projections next year.
The key to that rebound will come from the auto industry. Ford
For its part, North American Palladium is optimistic about its future. About a month ago, CFO Jeff Swinoga spoke at the Euro Pacific Capital investor conference, noting that declining production in Russia and labor problems in South Africa could spur a general rise in palladium prices, especially as demand continues to grow. If that comes to pass, then the stock could easily recover by year end.
North American Palladium has some interesting prospects, but I'd suggest you look at another company that could do even better. Read The Motley Fool's latest special report on gold to discover the tiny gold stock digging up massive profits. It's free but only available for a limited time.
Click here to add North American Palladium to My Watchlist, which can find all of our Foolish analysis on it and all your other stocks.
Fool contributor Dan Caplinger doesn't own shares of the companies mentioned. The Motley Fool owns shares of Ford. Motley Fool newsletter services have recommended buying shares of Ford and General Motors, as well as creating a synthetic long position in Ford. 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.