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.
Peabody facts
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 |
Return on Equity (average, past 3 years) | 17% |
Cash/Debt | $952.4 million / $6.7 billion |
Dividend Yield | 1.3% |
Competitors |
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.
Just last week, one of those bulls, All-Star coryjobe, tapped the stock as a solid bargain opportunity:
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.
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, Peabody 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 miner 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 theTrackPoisedToCAPS 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.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.
