5-Star Stocks Poised to Pop: Alliance Resource

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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, coal producer Alliance Resource Partners (NAS: ARLP) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Alliance Resource's business and see what CAPS investors are saying about the stock right now.

Alliance Resource facts

Headquarters (Founded)Tulsa, Okla. (1971)
Market Cap$2.7 billion
IndustryCoal and consumable fuels
Trailing-12-Month Revenue$1.8 billion
ManagementCEO Joseph Craft III (since 1999)
CFO Brian Cantrell (since 2005)
Return on Capital (Average, Past 3 Years)20.5%
Cash/Debt$273.5 million / $707.2 million
Dividend Yield5.1%
CompetitorsArch Coal
CONSOL Energy
Peabody Energy

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 97% of the 706 members who have rated Alliance Resource believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, MHenage, tapped Alliance Resource as an attractive income opportunity:

Outstanding company in the coal industry. Increases its dividend every quarter, 13% revenue growth, 20% earnings growth, 13% dividend growth, can't get better than that. Payouts are more than covered by free cash flow so you are not getting part of the assets back like with other partnerships.

Of course, despite its five-star rating, Alliance Resource may not be your top choice. If that's the case, we've compiled a special free report for investors called "Secure Your Future With 11 Rock-Solid Dividend Stocks," which uncovers several other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the newTrackPoisedToCAPS account.

At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Alliance Resource. Try any of our Foolish newsletter services free for 30 days.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's disclosure policy always gets a perfect score.

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