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4-Star Stocks Poised to Pop: CONSOL Energy

By Brian D. Pacampara, CFA - Updated Apr 5, 2017 at 8:04PM

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Market-trouncing returns could be written in this 4-star.

Based on the aggregated intelligence of 120,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, coal producer CONSOL Energy (NYSE:CNX) 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 CONSOL's business and see what CAPS investors are saying about the stock right now.

CONSOL facts

Headquarters (founded)

Canonsburg, Pennsylvania (1991)

Market Cap

$4.06 billion

Industry

Coal & Consumable Fuels

TTM Revenue

$4.19 billion

Management

CEO J. Brett Harvey (since 1998)

CFO William Lyons (since 2001)

Return on Equity (average last three years)

28.7%

Dividend Yield

1.5%

Competitors

Peabody Energy (NYSE:BTU),

Massey Energy (NYSE:MEE)

CAPS members bullish on CNX also bullish on

Arch Coal (NYSE:ACI),

Chesapeake Energy (NYSE:CHK)

CAPS members bearish on CNX also bearish on

James River Coal (NASDAQ:JRCC),

Foundation Coal (NYSE:FCL)

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

Over on CAPS, fully 520 of the 555 members who have rated CONSOL -- some 94% -- believe the stock will outperform the S&P 500 going forward. These bulls include srk85 and my fellow Fool Christopher Barker (TMFSinchiruna).

Last week, srk85 touched on the stock's attractive price: "Forward PE is around 3 and growth is projected to be through the roof. With the price down 80% from not too distant highs, this is a great value."

In a more detailed pitch from a week earlier, Christopher shares that sentiment, tapping CONSOL as a particularly special coal stock. Here's an excerpt:

... I singled out CONSOL Energy as a solid near-term prospect because of the company's unique production profile among Appalachian players with 96% of production coming from underground mines. CONSOL is not immune to most of the challenges listed by Foundation and Patriot -- like labor shortages and increased site visits by regulatory personnel -- but I view the lack of exposure to surface mining activity as a major plus until the case involving Massey and its potential implications for the region's coal miners are fully resolved.

What do you think about CONSOL, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 120,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Chesapeake Energy is a Motley Fool Inside Value pick. The Fool's disclosure policy always gets a perfect score.

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Stocks Mentioned

CONSOL Energy Inc. Stock Quote
CONSOL Energy Inc.
CNX
$16.25 (0.25%) $0.04
Peabody Energy Corporation Stock Quote
Peabody Energy Corporation
BTU
Chesapeake Energy Corporation Stock Quote
Chesapeake Energy Corporation
CHKA.Q

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