4-Star Mining Stocks Poised to Pop: Cliffs Natural Resources

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 (NYSE: CLF  ) 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.

Cliffs facts

Headquarters (founded)

Cleveland (1847)

Market Cap

$5.2 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 / $3.9 billion

Dividend Yield

6.9%

Competitors

Alpha Natural Resources (NYSE: ANR  )

CONSOL Energy (NYSE: CNX  )

Peabody Energy (NYSE: BTU  )

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

On CAPS, 96% of the 1,559 members who have rated Cliffs believe the stock will outperform the S&P 500 going forward.

Just a few weeks ago, one of those Fools, DrGoldin, highlighted Cliffs as a rather solid bargain opportunity:

I understand that iron-ore prices are under pressure. I understand that the company isn't particularly well-diversified. I also see that their dividend yield is over 6% and their payout ratio is tiny. And China is not CRASHING; it's just slowing down. [Cliffs] has repeated that the dividend is safe, and I really don't see much danger. So why on earth is this not a buy at these prices? I'm getting hammered right now because I made my buy call a touch early, but in the long run I don't think it's going to matter much.

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.

Fool contributor Brian 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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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 November 02, 2012, at 9:18 PM, DougMcClenaghan wrote:

    I think if you analyzed the income statement you will find the earnings from operations from the recent quarter just ended as very dismal.

    $64 million of their $81 million in earnings came from tax accrual reversals.

    This equates to EPS from operating activities of only about 16 pennies.

    The reported earnings of $.59 has over $.40/share of tax accrual reversals.

    It was a much uglier quarter than the numbers seem to portray.

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