4-Star Stocks Poised to Pop: Alpha Natural Resources

Brian D. Pacampara, The Motley Fool

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, coal producer Alpha Natural Resources (NYS: ANR) has earned a respected four-star ranking.

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

Alpha Natural facts

Headquarters (founded)

Abingdon, Va. (2002)

Market Cap

$3.4 billion

Industry

Coal and consumable fuels

Trailing-12-Month Revenue

$7.0 billion

Management

CEO Kevin Crutchfield
CFO Frank Wood

Return on Equity (average, past 3 years)

(1.9%)

Cash/Debt

$700.0 million / $3.0 billion

Competitors

Arch Coal
CONSOL Energy
Peabody Energy


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

On CAPS, 95% of the 884 members who have rated Alpha Natural believe the stock will outperform the S&P 500 going forward.

Earlier this month, one of those Fools, 5starman, tapped the stock as a solid way to play depressed coal prices:

Coal's gotta come back sooner or later. In the US it may be used less, but the rest of the world is still firing away coal. Once prices stabilize after production cutbacks, the entire industry should rebound.

Of course, despite its four-star rating, Alpha Natural may not be your top choice. If that's the case, we've compiled a special free report for investors called "The Tiny Gold Stock Digging Up Massive Profits," which uncovers a smaller with big potential. 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 thisarticle 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.

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