With more than 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 Stillwater Mining
Stats on Stillwater Mining
|Average Stock Price Target||$13.80|
|2012 EPS Estimate||$0.46|
|2013 EPS Estimate||$0.84|
|2012 Sales Growth Estimate||(7.3%)|
|2013 Sales Growth Estimate||17%|
|CAPS Rating (out of 5)||***|
Source: Yahoo! Finance.
Can Stillwater recover by year end?
As we saw with North American Palladium
Traditionally, the big source of demand for platinum-group metals has come from Ford
One interesting trend that's taking place, though, is that discerning jewelry customers are shifting to the white metals. China has become a substantial consumer of platinum jewelry, while India has also made a shift from gold to platinum based on both price and rarity. If that jewelry demand continues to grow, it could put an important floor under metals prices, and that could finally allow Stillwater to hit bottom.
Put simply, Stillwater needs more favorable pricing for its metals in order to bounce back from its recent losses. With many investors increasingly moving away from precious metals, it's far from certain that Stillwater will be able to regain its losses by the end of the year.
Stillwater Mining may have a questionable future, but there are other promising mining plays out there. 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 Stillwater Mining 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 on 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.