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.
St. Louis, Mo. (1883)
Coal and consumable fuels
Chairman/CEO Gregory Boyce
Return on Equity (average, past 3 years)
$489.2 million/$6.4 billion
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 96% of the 2,104 members who have rated Peabody believe the stock will outperform the S&P 500 going forward.
I think coal has bottomed because it trails [natural gas] prices which are off their lows. [Peabody] and [Joy Global (NYS: JOY) ] are nicely undervalued even at today's low coal prices because they produce good earnings and cash flow. Imagine if coal regains price per kJ parity with [natural gas].
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.
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The article 4-Star Stocks Poised to Pop: Peabody Energy originally appeared on Fool.com.
Brian D. Pacampara has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. 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 Motley Fool has a disclosure policy.
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