4-Star Stocks Poised to Pop: Peabody Energy

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 (NYSE: 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.

Peabody facts

Headquarters (founded) St. Louis (1883)
Market Cap $6.8 billion
Industry Coal and consumable fuels
Trailing-12-Month Revenue $8.3 billion
Management Chairman/CEO Gregory Boyce
Vice President/CFO Michael Crews
Return on Equity (average, past 3 years) 17%
Cash/Debt $952.4 million / $6.7 billion
Dividend Yield 1.3%
Competitors Arch Coal
BHP Billiton

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

On CAPS, 96% of the 2,073 members who have rated Peabody believe the stock will outperform the S&P 500 going forward.  

Just last week, one of those bulls, All-Star coryjobe, tapped the stock as a solid bargain opportunity:

Current pullback seems to be because of Energy as a whole, [Peabody's] world [exposure] sets them apart from the rest, their high prices in China has helped offset weak demand in the U.S. although the slowdown in the housing market is something to keep an eye on. If China goes into a recession this could also hurt [Peabody], but with a [P/E of 7] its tough not to buy.

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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.

Read/Post Comments (1) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On July 09, 2012, at 7:49 PM, AWinvestments wrote:

    I'd like more information on this one. Fortunately I got out of it in the low 30's. But, could elaborate on why it is reaching a bottom and why it's future prospects are bright? It seems anything with the word "coal" attached to it is getting slammed by the market.

    Thank you.

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