Based on the aggregated intelligence of 125,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, mine operator Cliffs Natural Resources (NYSE:CLF) has earned a respected four-star ranking. While five-star stocks have been the best performers, our data has shown that four-star stocks still outshine the market by a significant margin and shouldn't be taken lightly; conversely, low-rated stocks have woefully lagged the market average.

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

Cliffs facts

Headquarters (founded)

Cleveland, Ohio (1847)

Market Cap

$3.48 billion



TTM Revenue

$3.48 billion


CEO Joseph Carrabba
CFO Laurie Brlas

Return on Equity (average last three years)


Dividend Yield



Rio Tinto (NYSE:RTP),
Peabody Energy (NYSE:BTU)

CAPS members bullish on CLF also bullish on

Vale (NYSE:RIO),
Potash Corp. (NYSE:POT)

CAPS members bearish on CLF also bearish on

General Motors (NYSE:GM),
United States Steel (NYSE:X)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, fully 146 of the 157 All-Star members who have rated Cliffs -- some 93% -- believe the stock will outperform the S&P 500 going forward. These bulls include BSHumphreyII and TSIF, both of whom are ranked in the top 2% of our community.

Late last week, BSHumphreyII tapped Cliffs as a steal on steel: "Bet on a mini-bull market in steel in early 2009. Cliffs has a good looking balance sheet and good cash flow."

In an earlier pitch from last month, TSIF shares that bullishness, highlighting the stock's several long-term tailwinds:

[M]etallurgical grade coal and iron pellets may not be the stock for today 12/22/08, but with the infrastructure plays coming up over the next 6-12 months, here in the US and worldwide, especially in China, those little iron ore pellets that ship so well are highly undervalued right now! Founded in 1847 with interests in Brazil and Australia, they have held strong over time. P/E in the 4's might not hold as prices drop, but even if they drop they will still be low valued. The cash on hand isn't far from their debt and their margins have room to drop and still keep the foundry upright. Cash flow looks good and a little dividend here and there doesn't hurt.

What do you think about Cliffs, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 125,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool's disclosure policy always gets a perfect score.