4-Star Stocks Poised to Pop: Arch Coal
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, coal producer Arch Coal (NYS: ACI) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Arch Coal's business and see what CAPS investors are saying about the stock right now.
Arch Coal facts
|Headquarters (Founded)||St. Louis (1969)|
|Market Cap||$3.0 billion|
|Industry||Coal and consumable fuels|
|Trailing-12-Month Revenue||$4.3 billion|
|Management||Chairman/CEO Steven Leer|
CFO John Drexler
|Return on Equity (Average, Past 3 Years)||4.8%|
|Cash/Debt||$138.2 million / $4.0 billion|
|Competitors||Alpha Natural Resources|
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 96% of the 1,472 members who have rated Arch Coal believe the stock will outperform the S&P 500 going forward.
The coal industry will continue to do well going forward. Green energy sources cannot possibly keep up with the growing demand for electricity. ... Coal is too abundant and too cheap. We are going to use it for something. The metrics for Arch look great. At $15 it is trading near tangible book value with a nice dividend to boot. It is also a possible merger candidate with the recent consolidation activity in the industry.
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At the time this article was published 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.