4-Star Stocks Poised to Pop: Cliffs Natural Resources

Updated

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

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

Cliffs facts

Headquarters (founded)

Cleveland (1847)

Market Cap

$6.5 billion

Industry

Steel

Trailing-12-Month Revenue

$6.9 billion

Management

Chairman/CEO Joseph Carrabba
CFO Laurie Brlas

Return on Equity (average, past 3 years)

27.3%

Cash/Debt

$122.3 million / $4.0 billion

Dividend Yield

5.5%

Competitors

Alpha Natural Resources
CONSOL Energy
Peabody Energy


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

On CAPS, 96% of the 1,517 members who have rated Cliffs believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those bulls, MarkP28665, tapped the stock as a particularly solid bargain opportunity: "[Cliffs] is cheap. It might get cheaper with a market wide downturn but at under 5x earnings and a nice dividend I intend to sit on this until the demand for steel improves which in turn would raise the demand for [Cliffs] iron ore and coke."

If you want market-topping 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, Cliffs may not be your top choice.

If that's the case, we've compiled a special free report for investors called "The 3 Dow Stocks Dividend Investors Need," which uncovers several other juicy income opportunities. 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.

The article 4-Star Stocks Poised to Pop: Cliffs Natural Resources originally appeared on Fool.com.

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.

Advertisement