4-Star Stocks Poised to Pop: Cliffs Natural Resources

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, iron ore miner Cliffs Natural Resources (NYSE: CLF  ) has earned a respected four-star ranking.

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

Cliffs facts

Headquarters (Founded)	Cleveland (1847)
Market Cap	$8.54 billion
Industry	Industrial metals and minerals
Trailing-12-Month Revenue	$6.56 billion
Management	Chairman/CEO Joseph Carrabba CFO Laurie Brlas
Return on Equity (Average, Past 3 Years)	23.7%
Cash/Debt	$545 million / $4.2 billion
Dividend Yield	1.9%
Competitors	BHP Billiton (NYSE: BHP  ) Peabody Energy (NYSE: BTU  ) Teck Resources (NYSE: TCK  )

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

On CAPS, 96% of the 1,422 members who have rated Cliffs believe the stock will outperform the S&P 500 going forward. These bulls include mitleg and BigOlDave. ��

Earlier this month, mitleg tapped Cliffs as a timely bargain opportunity:

This is an all around great company. ... With a global economy seeming to moderate, it is a good time to get in. Forward [P/E] is under 6. PEG is well under 1. Great management. Buy.

In fact, Cliffs sports a particularly paltry P/E of 4.6. That represents a discount to competitors like BHP Billiton (7.9), Peabody (9.0), and Teck Resources (8.5).

CAPS member BigOlDave elaborates on the bull case:

Cliffs Natural Resources seems to be a good stock to hold. ... Metal mining (iron ore pellets and met & thermal coal) seems like a good sector, if the world economy gets healthier.

As a sanity check, I note the following:
� S&P gives it 5 stars out of 5 (�Strong Buy�) ...
� The Motley Fool [CAPS community] consistently gives it 4 out of 5 stars.

[I]n an up market Cliffs will take off like a rocket. As soon as it hits some rare heights, I�m out of it. In the meantime, its dividend yield is fair� though I prefer higher dividend payers.

If [Cliffs] was not such a prominent player in my portfolio, I would look to get more of it. Recommendation: Buy.

What do you think about Cliffs, 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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