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5-Star Stocks Poised to Pop: SunCoke Energy

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, SunCoke Energy (NYSE: SXC  ) , which manufactures coke for use in the production of blast furnace steel, has earned a coveted five-star ranking.

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

SunCoke facts

Headquarters (Founded) Knoxville, Tenn. (1979)
Market Cap $842 million
Industry Steel and iron
Trailing-12-Month Revenue $1.42 billion
Management

Chairman/CEO Frederick Henderson (since 2010)

COO Michael Thomson (since 2010)

Trailing-12-Month Operating Margin 5.7%
Cash/Debt $111 million / $698 million

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

On CAPS, all 11 of the CAPS members who have rated SunCoke believe the stock will outperform the S&P 500 going forward. These bulls include drewsd35 and kenjotto.

This past summer, drewsd35 tapped the Sunoco (NYSE: SUN  ) spinoff as a solid opportunity: "Sunoco related company to help stop coke shortages can beat the [S&P 500] over long term if company holds steady to current business plan."

Currently, SunCoke even sports a cheapish forward P/E of 7. That represents a discount to more traditional steel plays like Nucor (NYSE: NUE  ) (12.5) and U.S. Steel (NYSE: X  ) (10.7).

CAPS member kenjotto elaborates on the bull case:

SXC is well situated to capitalize on the world's expanding infrastructure needs. With the constant coke shortage in the US, and it's expanding operations in Brazil with ArcelorMittal, SXC will do well over the long term. Plus, as a spinoff from Sunoco, it should benefit from the long term trend of spun off companies being able to grow faster as standalones than as parts of a larger company.

What do you think about SunCoke, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Interested in another easy way to track SunCoke? Add it to your watchlist.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Nucor. 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.


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4/21/2014 11:01 AM
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