Why Cliffs Natural Is Ready to Rebound

Brian D. Pacampara, The Motley Fool
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 has earned a respected four-star ranking.

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

Cliffsfacts

Headquarters (Founded)

Cleveland (1847)

Market Cap

$4.9 billion

Industry

Steel

Trailing-12-Month Revenue

$6.2 billion

Management

Chairman/CEO Joseph Carrabba
CFO Terrance Paradie

Return on Equity (Average, Past 3 Years)

25.8%

Cash/Debt

$36.3 million / $4.2 billion

Dividend Yield

7.4%

Competitors

Alpha Natural Resources
CONSOL Energy
Peabody Energy


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

On CAPS, 96% of the 1,564 members who have rated Cliffs believe the stock will outperform the S&P 500 going forward.

Earlier today, one of those Fools, PrototypeZ, tapped Cliffs as a particularly attractive bargain opportunity:

Beaten down stock [because of] slow growth internationally and expected lower demand for steel. Great place to get in and start collecting a 7% [dividend yield] while waiting for demand to come back and send these shares upwards. Horizon on this stock is 3-5 years.

If you want market-thumping returns, you need to put together the best portfolio you can. 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 "Secure Your Future With 9 Rock-Solid Dividend Stocks," 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.

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The article Why Cliffs Natural Is Ready to Rebound originally appeared on Fool.com.

Fool contributor Brian Pacampara and The Motley Fool have no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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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Originally published