4-Star Stocks Poised to Pop: Peabody Energy
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.
|Headquarters (founded)||St. Louis (1883)|
|Market Cap||$6.8 billion|
|Industry||Coal and consumable fuels|
|Trailing-12-Month Revenue||$8.3 billion|
|Management||Chairman/CEO Gregory Boyce|
Vice President/CFO Michael Crews
|Return on Equity (average, past 3 years)||17%|
|Cash/Debt||$952.4 million / $6.7 billion|
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 96% of the 2,073 members who have rated Peabody believe the stock will outperform the S&P 500 going forward.
Current pullback seems to be because of Energy as a whole, [Peabody's] world [exposure] sets them apart from the rest, their high prices in China has helped offset weak demand in the U.S. although the slowdown in the housing market is something to keep an eye on. If China goes into a recession this could also hurt [Peabody], but with a [P/E of 7] its tough not to buy.
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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.