4-Star Stocks Poised to Pop: Walter Energy


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

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


Headquarters (founded)

Birmingham, Ala. (1946)

Market Cap

$2.8 billion


Diversified metals and mining

Trailing-12-Month Revenue

$2.8 billion


CEO Walter Scheller, III (since 2011)
Chief accounting officer Robert Kerley (since 2011)

Return on Equity (average, past 3 years)



$144 million/$2.4 billion

Dividend Yield



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

On CAPS, 95% of the 1,583 members who have rated Walter believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, wil3714, tapped the stock as an attractive bargain opportunity:

[Walter] has been slaughtered even though it continually is profitable over the years. 2012 EPS is projected at $4.30 and 2013 EPS is $6.88. [Walter] trades at 9.6X 2012 and 6.8X 2013 estimates...No doubt the market is in turmoil and the sector in disastrous but the decline is over done.

If you want market-thumping 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, Walter may not be your top choice.

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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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Originally published