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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.

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.

Symbol
Price
 
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%Change
GDX
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S&P 500
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GOLD
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NEM
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CDE
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ABX
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CNX
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