Why Peabody Is Poised to Bounce Back

Updated
Why Peabody Is Poised to Bounce Back

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 has earned a respected four-star ranking.

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

Peabodyfacts

Headquarters (founded)

St. Louis, Mo. (1883)

Market Cap

$4.0 billion

Industry

Coal and consumable fuels

Trailing-12-Month Revenue

$7.8 billion

Management

Chairman/CEO Gregory Boyce

Vice President/CFO Michael Crew

Return on Equity (average, past 3 years)

8.8%

Cash/Debt

$638.2 million / $6.2 billion

Dividend Yield

2.3%

Competitors

Arch Coal

BHP Billiton

CONSOL Energy


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

On CAPS, 96% of the 2,058 members who have rated Peabody believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, Coinmann, tapped Peabody as a particularly timely bargain opportunity:

Recent sell off has been overdone. This stock is an excellent value based on its discount to book value and the outlook for a recovery in coal. It and its peers are taking capacity out of the market that will help shore up pricing very soon.

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The article Why Peabody Is Poised to Bounce Back originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks 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 Motley Fool has a disclosure policy.

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