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The best performing stocks in the market are usually the highest growing stocks or the stocks with the highest expected growth rates. This doesn’t mean that one should be invested in growth stocks and stay away from the value stocks at all times. Historically value stocks managed to beat the growth stocks hand over fist. The reason is simple. Value stocks are beaten down stocks with very low or negative growth expectations. Not surprisingly it is easier for these stocks to beat the expectations on the average. On the other hand, everybody is extremely bullish about growth stocks and expect them to have higher growth rates in the future. Their stock prices also reflect this fact. Not surprisingly, it is more difficult for these stocks to beat these challenging expectations.

We ranked the commodity producers based on their expected 5-year growth rates. The data source for Wall Street Analysts’ projections is Thomson Financial. Contrarian investors should look into the stocks that are at the top of the table.

Company

Symbol

Market Cap

Forward PE

Expected 5-Year Growth Rate

Sterlite Industries India Limited

SLT

47.26B

7.64

(17.8)

Sociedad Quimica y Minera

SQM

13.80B

26.34

0.1

Newmont Mining Corporation

NEM

24.92B

11.09

0.7

Sasol Limited

SSL

34.51B

10.16

1.7

Weyerhaeuser Company

WY

13.08B

23.84

1.8

Barrick Gold Corporation (USA)

ABX

48.21B

12.5

2.0

International Paper Company

IP

11.58B

8.01

2.1

Freeport-McMoRan

FCX

49.40B

7.88

2.3

International Flavors & Fragrances

IFF

4.65B

14.18

2.8

Teck Resources Limited

TCK

31.64B

8.15

3.8

The Dow Chemical Company

DOW

41.89B

10.9

5.2

Mechel OAO

MTL

12.29B

8.51

6.4

Yamana Gold Inc. (USA)

AUY

8.89B

12.4

6.5

EI du Pont de Nemours

DD

48.25B

12.78

7.0

Celanese Corporation

CE

6.18B

8.75

7.3

Albemarle Corporation

ALB

4.97B

12.36

7.4

Sigma-Aldrich Corporation

SIAL

7.48B

16

7.7

Kinross Gold Corporation (USA)

KGC

16.33B

18.34

7.9

FMC Corporation

FMC

5.45B

11.71

8.3

MeadWestvaco Corp.

MWV

4.70B

13.35

8.4

Ball Corporation

BLL

6.01B

11.18

8.4

Air Products & Chemicals, Inc.

APD

18.32B

13.75

8.8

Cliffs Natural Resources Inc

CLF

11.91B

6.49

9.0

Rio Tinto plc

RIO

126.71B

6.52

9.3

Vale

VALE

165.12B

6.67

9.4

CF Industries Holdings, Inc.

CF

9.30B

10.35

9.6

Precision Castparts Corp.

PCP

20.19B

16.88

9.7

Parker-Hannifin Corporation

PH

14.24B

12.41

10.3

Alumina Limited

AWC

5.30B

11.25

10.3

Eastman Chemical Company

EMN

6.72B

10.64

10.3

Praxair, Inc.

PX

29.08B

16.06

10.4

Ashland Inc.

ASH

4.57B

11.93

10.7

PPG Industries, Inc.

PPG

14.12B

13.31

10.8

Nucor Corporation

NUE

14.32B

12.23

10.8

The Mosaic Company

MOS

34.46B

14.42

10.8

The Timken Company

TKR

4.76B

11.01

11.1

Companhia Siderurgica Nacional

SID

23.81B

6.33

11.3

Airgas, Inc.

ARG

5.18B

16.65

11.6

Potash Corp./Saskatchewan (USA)

POT

142.00B

14.6

12.2

Eldorado Gold Corporation (USA)

EGO

8.53B

16.13

12.2

Monsanto Company

MON

36.07B

19.96

12.6

Alcoa Inc.

AA

16.94B

11.19

13.2

Ternium SA

TX

6.92B

8.52

13.3

POSCO

PKX

33.52B

8.49

14.2

BHP Billiton plc

BBL

203.47B

9.67

14.4

Compania de Minas Buenaventura

BVN

10.72B

11.67

16.0

Harmony Gold Mining Co.

HMY

5.12B

11.92

16.8

Lubrizol Corporation

LZ

8.60B

10.79

17.4

Gerdau SA

GGB

18.56B

6.19

17.7

ArcelorMittal

MT

52.67B

8.4

17.9

Agrium Inc. (USA)

AGU

14.11B

11.29

17.9

United States Steel Corporation

X

7.90B

8.97

19.1

Southern Copper Corp

SCCO

34.59B

10.28

27.8

Allegheny Technologies Inc

ATI

6.19B

15.01

34.9

Agnico-Eagle Mines Limited (USA)

AEM

10.97B

20.35

35.1

Goldcorp Inc. (USA)

GG

37.07B

18.4

37.6

IAMGOLD Corporation (USA)

IAG

7.53B

16.29

67.9

AngloGold Ashanti Limited

AU

16.86B

11.67

72.9

Prominent hedge funds are extremely bullish about gold and gold producers. John Paulson, who made $5 Billion in 2010 from his hedge fund, prefers Kinross Gold Corp (KGC), Anglogold Ashanti (AU), Novagold Resources Inc (NG), Randgold Resources (GOLD), and Barrick Gold Corp. (ABX). Jim Simons’ Renaissance, Ray Dalio’s Bridgewater, and Brevan Howard are among the hedge funds with Newmont Mining positions.

Most hedge funds are already invested in Potash (POT) or CF Industries (CF) to take advantage of soaring food prices. John Burbank's Passport Capital, David Einhorn's Greenlight, Daniel Loeb’s Third Point, Tom Steyer’s Farallon Capital, Andreas Halvorsen’s Viking Global, Jim Simons’ Renaissance, Richard Perry’s Perry Capital and Mohnish Pabrai bet on Potash. CF Industries is one of the 10 stocks hedge funds own the most of.

Jim Rogers is insanely bullish about these stocks, saying that commodities will increase no matter what happens in the global economy. The question is whether one should invest in commodity producers with low expected growth or high expected growth.

Source: Top Commodity Producers With the Highest Upside Potential