3 Gold Mining Stock Bargains

3 Gold Mining Stock Bargains
3 Gold Mining Stock Bargains   

Mining stocks have been hit by gold's price decline, but a few names are worth a look, Sterne Agee Managing Director Michael Dudas said Friday.

"It's been interesting. The miners have so underperformed the gold price decline," he said. "The GDX has underperformed the S&P by 5,000 basis points. It's been just totally out of favor."

(Read More: What Hedge Funds Are Doing With Gold)

On CNBC's "Fast Money," Dudas noted Thursday's correlation in the price action for gold and mining companies.

"We only had about a 1, 1½ percent move in gold, yet some of these stocks were up 7, 8, 9 percent, so you're going to see some violent moves I think in the names as we move forward as we try to base this metal," he said.

Add to Your Gold on the Dips, Or Sell?
Add to Your Gold on the Dips, Or Sell?   

Gold traded at $1,394 per ounce at 1:08 p.m. ET, down 1.24 percent.

Dudas shared his top three mining stocks, which were inexpensive and poised for growth:

He also said that as a coal play, Consol, was worth a look.

(Read More: Gold Miners Seen in a New Light)

Gold, Dudas noted, gold still needed to find stability.

"Certainly, gold has found some big near-term headwinds with what's happened to the dollar," he said. "And certainly since the breakdown in the price in early April when it broke $1,600 to where we are today, there's got to be some technical repair and the damage that's been done. I think that's what the market's trying to figure out right now."

Trader disclosure: On May 30, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Mike Murphy is long BAC; Mike Murphy is long INTC; Jon Najarian is long AAPL; Jon Najarian is long JPM; Jon Najarian is long MSFT; Jon Najarian is long CSIQ; Jon Najarian is long NEM; Jon Najarian is long OVTI; Jon Najarian is long AFFY; Jon Najarian is long CLSN; Jon Najarian is long ORPN; Jon Najarian is long TMO; Jon Najarian is long ZNGA; Steve Weiss is long AAMRQ; Steve Weiss is long C; Steve Weiss is long BAC; Steve Weiss is long SODA; Pete Najarian is long AAPL ; Pete Najarian is long BAC CALLS; Pete Najarian is long C CALLS; Pete Najarian is long JPM CALLS; Pete Najarian is long MS CALLS; Pete Najarian is long XLF CALLS; Pete Najarian is long CSCO CALLS; Pete Najarian is long YHOO CALLS; Pete Najarian is long BBRY; Pete Najarian is long SBUX; Pete Najarian is long FB; Pete Najarian is long MSFT; Pete Najarian is long MRK; Pete Najarian is long BMY; Pete Najarian is long AIG CALLS.