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 |
$9.27 billion |
| Industry |
Coal and consumable fuels |
| Trailing-12-Month Revenue |
$7.61 billion |
| Management |
Chairman/CEO Gregory Boyce
Vice President/CFO Michael Crews |
| Return on Equity (Average, Past 3 Years) |
18.5% |
| Cash/Debt |
$1.4 billion / $2.5 billion |
| Dividend Yield |
1.0% |
| Competitors |
Alpha Natural Resources (NYSE: ANR )
BHP Billiton (NYSE: BHP )
CONSOL Energy (NYSE: CNX ) |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 96% of the 1,942 members who have rated Peabody believe the stock will outperform the S&P 500 going forward. These bulls include bullydawg7 and RJTaylor12.
Earlier this month, bullydawg7 touched on Peabody's recent purchase of Australian miner Macarthur Coal as a bullish bonus: "[Peabody] is a great company marketing a product globally that will continue to be in demand. The Australian acquisition is icing on the cake really."
Peabody even trades at a particularly paltry forward P/E of 6.7. That represents a discount to competitors like Alpha Natural (11.9), BHP (10.7), and CONSOL (10.5).
CAPS member RJTaylor12 expands on the Peabody outperform argument:
What's not to like? Huge reserves, loads of cash, largest [private-sector] producer in the U.S. of a resource that is going to be increasingly sought after for at least the next decade (irrespective of the eco-movements desires) sounds good to me!
What do you think about Peabody, 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!
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