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 (NYSE: BTU  ) 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.

Peabody facts

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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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 01, 2013, at 3:32 PM, eblastman01 wrote:

    oh yeah lets all forget about the fact Obama has aligned the entire resources of the Federal government to bankrupt BTU. who's gonna win that war?

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