Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, coal miner Cloud Peak Energy (NYSE: CLD ) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Cloud Peak's business and see what CAPS investors are saying about the stock right now.
Cloud Peak facts
|Headquarters (Founded)||Gillette, Wyoming (1993)|
|Market Cap||$1.4 billion|
|Industry||Coal and consumable fuels|
|Trailing-12-Month Revenue||$1.5 billion|
CEO Colin Marshall (since 2008)
CFO Michael Barrett (since 2008)
|Trailing-12-Month Return on Equity||28.1%|
|Cash/Debt||$437.6 million / $888 million|
Arch Coal (NYSE: ACI )
Peabody Energy (NYSE: BTU )
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 97% of the 178 members who have rated Cloud Peak believe the stock will outperform the S&P 500 going forward. These bulls include BYRDJD and All-Star edwjm, who is ranked in the top 0.5% of our community.
This past summer, BYRDJD tapped Cloud Peak as a particularly timely opportunity:
Coal as a fuel isn't going away soon. If the US doesn't use it China will. Maybe not a lifetime hold, but for the next few years this stock will be a winner.
Currently, Cloud Peak even sports a cheapish P/E of 8. That represents a clear discount to industry peers like Arch Coal (24), Peabody (12), and CONSOL Energy (NYSE: CNX ) (17).
CAPS All-Star edwjm elaborates on the bargain opportunity:
Most shares are held by institutions. Sell-side analysts generally like it, though not enthusiastically. ... It should do well when the economy recovers. I consider the present price a bargain. The US has lots of coal, so it will continue to be used for years to come. As petroleum products become scarcer and more expensive, the cost effectiveness of coal will rise.
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