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To achieve portfolio growth in volatile markets it is necessary to identify those stocks that can outperform over the short to medium term. To do this we need to identify stocks that have been heavily undervalued by the market or are within industries that have continuing opportunities for increased revenue growth. This article will review five stocks that I believe could double or triple in value.

Sirius XM Radio Inc (NASDAQ:SIRI)

Sirius XM Radio has a market cap of $6.86 billion with a price-to-earnings ratio of 44.63. For a 52-week period, its trading range has been $1.10 to $2.44, with a 3- month average trading volume of 83.72 million. Its last trading price was $1.83.

The company reported second-quarter earnings 2011 of $744 million, an increase from first-quarter earnings of $724 million. Second-quarter net income was $173.32 million, an increase from first-quarter net income of $78.12 million. The company has quarterly revenue growth of 6.4% and a return on equity of 70.40%.

One of Sirius XM Radio’s closest competitors is Westwood One Inc (NASDAQ:WWON). Westwood One last traded at $3.97 and has a market cap of $89.73 million. Westwood One is operating at a net loss and does not pay a dividend.

Sirius XM Radio's quarterly revenue growth of 6.4% is against an industry average of 9.40%. However, it has a return on equity of 70.4% placing it first in its industry. This combined with the increase in net income in the second quarter, makes me confident the company has substantial growth potential that will translate into an increase in the stock price. I strongly rate Sirius XM Radio a buy.

ATP Oil and Gas Corporation (ATPG)

ATP Oil and Gas Corporation has a market cap of $597.20 million. For a 52-week period its trading range has been $6.26 to $21.40 with an average 3-month trading volume of 1.902 million. Its last trading price was $11.69.

The company reported second-quarter earnings for 2011 as $173 million, which is an increase from first-quarter earnings of $167 million. Second-quarter net loss was -$56.85 million, which was a decrease from first-quarter net loss of -$119.55 million. This decrease in the net loss can be attributed to increased earnings and a decrease in total operating expenses. The company has quarterly revenue growth of 71.00% and a return on equity of -305.54%. ATP Oil and Gas Corporation does not pay a dividend.

One of ATP Oil and Gas Corporation´s closest competitors is Forest Oil Corporation (NYSE:FST). Forest Oil Corporation last traded at $19.33 and has a market cap of $2.16 billion. It has a price-to-earnings ratio of 18.27, quarterly revenue growth of 14.40% and does not pay a dividend.

ATP Oil and Gas Corporation has a quarterly earnings growth rate that is greater than the industry average of 15.50% and Forest Oil Corporation's 14.40%. When this is combined with the high demand from the Chinese economy for resources including oil, there is tremendous growth potential for ATP Oil and Gas Corporation. This should lead to a substantial increase in the share price.

I do believe that some caution should be exercised as the company is still operating at a net loss and I rate ATP Oil and Gas Corporation a speculative buy.

Barrick Gold Corporation (NYSE:ABX)

Barrick Gold Corporation has a market cap of $53.55 billion with a price-to-earnings ratio of 13.98. For a 52 week period its trading range has been $42.50 to $55.95 with an average 3-month trading volume of 9 million. Its last trading price was $53.58.

The company reported second-quarter 2011 earnings of $3.43 billion, an increase from first-quarter earnings of $3.09 billion. Second-quarter net income was $1.16 billion, an increase from first-quarter net income of $1.00 billion. The company is achieving quarterly revenue growth of 29.70% and has a return on equity of 18.72%. Barrick Gold pays a dividend with a yield of 0.90%.

One of Barrick Gold’s closest competitors is Newmont Mining Corporation (NYSE:NEM). Newmont Mining Corp last traded at $65.72, has a market cap of $32.48 billion and a price-to-earnings ratio of 14.67. It has quarterly revenue growth of 10.0%. Newmont Mining Corp pays a dividend with a yield of 1.90%.

Barrick Gold’s quarterly revenue growth of 29.70% is double Newmont Mining Corporation’s, 10.0%, but is below the industry average of 59.90%. Barrick Gold’s return on equity of 18.72% is greater than Newmont Mining Corporation’s 14.53%. This indicates that Barrick Gold is a soundly managed company with strong revenue growth potential. When it is also considered that general expenses have decreased in the second quarter 2011 to $38 million, from $42 million for the first quarter, there is strong future potential for a substantial increase in net income.

In addition, as the gold price over the last year has increased by 39.83%, with gold now trading at $1,811.35 per ounce, and HSBC’s forecast that the gold price will reach $2025 per ounce in 2012, gold stocks represent a good investment opportunity. I strongly rate Barrick Gold a buy.

GMX Resources Inc (GMXR)

GMX Resources has a market cap of $137.11 million. For a 52-week period its trading range has been $2.16 to $6.48 with an average 3-month trading volume of 1.588 million. Its last trading price was $2.36.

The company reported second-quarter earnings 2011 as $32.86 million, an increase from first-quarter earnings of $29.38 million. Second-quarter net income was -$15.38 million, a substantial decrease from the first-quarter net loss of -$54.45 million.

The decrease in the second quarter net loss can be attributed to a marked decrease in operating expenses. Operating expenses for the second quarter were $16.86 million, against $48.32 million for the first quarter. GMX Resources has quarterly earnings growth of 41.50%.

One of GMX Resource's closest competitors is Cabot Oil and Gas Corporation (NYSE:COG). Cabot Oil and Gas Corporation last traded at $70.56. It has a market cap of $7.37 billion with a price-to-earnings ratio of 61.89. Cabot Oil and Gas Corporation pays a dividend with a yield of 0.20%.

GMX Resources has a quarterly earnings growth of 41.50%, well above the industry average of 15.50% and Cabot Oil and Gas Corporation’s 6.40%. It is well positioned for growth given the boom in demand for resources like natural gas, driven by the growth of the Chinese economy. A weak dollar and reinvigorated manufacturing base that consumes gas will also benefit E&Ps like GMX. While it is currently operating at a net loss, increasing gross revenues and a higher-than-average quarterly revenue growth rate indicate that GMX is well positioned for further earnings growth. I strongly rate GMX Resources a buy.

Ford Motor Company (NYSE:F)

Ford Motor Company has a market cap of $40.53 billion with a price-to-earnings ratio of 6.12. For a 52-week period its trading range has been $9.81 to $18.97 with an average 3-month trading volume of 71 million. Its last trading price was $10.62.

The company reported second-quarter earnings 2011 of $35.53 billion, an increase from first-quarter earnings of $33.11 billion. Second-quarter net income was $2.40 billion, a decrease from first-quarter net income of $2.55 billion. This can be attributed to an increase in general expenses in the second quarter. The company has quarterly revenue growth of 1.30% and a return on equity of 1804%. Ford Motor Company does not pay a dividend.

One of Ford Motor Company‘s closest competitors is General Motors Company (NYSE:GM). General Motors Company last traded at $22.61 and has a market cap of $35.31 billion with a price-to-earnings ratio of 4.76. General Motors Company doesn’t pay a dividend and has quarterly revenue growth of 18.70%, which is greater than Ford Motor Company’s 1.30%.

Ford Motor Company’s return on equity of 1804% is greater than General Motors Company, which is not currently generating a return on equity. This indicates it has more effective management and greater potential to increase net income.

When compared with the industry average Ford Motor Company is not performing as strongly as some of its competitors. Its quarterly earnings growth of 1.30% is substantially less than the industry average of 11.90%. Therefore, on a peer and industry comparison Ford Motor Company does not immediately represent a good buy. However, due to the substantial return on equity and steadily increasing quarterly revenues I rate this stock a buy.

Source: 5 Stocks That Could Double Or Triple In Value