4-Star Stocks Poised to Pop: Peabody Energy

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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 Peabody Energy (NYS: BTU) has earned a respected four-star ranking.

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

Peabody facts

Headquarters (founded)St. Louis (1883)
Market Cap$6.1 billion
IndustryCoal and consumable fuels
Trailing-12-Month Revenue$8.3 billion
ManagementChairman/CEO Gregory Boyce
Vice President/CFO Michael Crews
Return on Equity (average, past 3 years)17%
Cash/Debt$952.4 million / $6.7 billion
Dividend Yield1.5%
CompetitorsArch Coal
BHP Billiton
CONSOL Energy

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

On CAPS, 96% of the 2,077 members who have rated Peabody believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, jspatel, succinctly summed up the bull case for our community:

[Peabody] is best of breed coal, with Australian operations that will likely cater to Asia's coal needs, while sporting a healthy balance sheet relative to its competitors which will help it ride out the storm while paying a 1.4% dividend that is safe (9% payout ratio). I don't think coal is going anywhere, global demand remains and natural gas will go back up in price here soon.

If you want market-beating returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite a strong four-star rating, Peabody may not be your top choice.

If that's the case, we've compiled a special free report for investors called "The 3 Dow Stocks Dividend Investors Need," which uncovers a few 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 theTrackPoisedToCAPS account.

The article 4-Star Stocks Poised to Pop: Peabody Energy originally appeared on Fool.com.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. 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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