10 Best Coal Stocks To Buy Now According to Short Sellers

7. CONSOL Energy Inc. (NYSE:CEIX)

Number of Hedge Fund Holders: 30

Short % of Shares Outstanding: 5.98%

CONSOL Energy Inc. (NYSE:CEIX) is a Pennsylvania-based producer and exporter of high-Btu bituminous thermal coal and metallurgical coal. The company operates through two segments: Pennsylvania Mining Complex (PAMC) and CONSOL Marine Terminal. The PAMC segment focuses on mining, processing, and marketing bituminous coal. The CONSOL Marine Terminal segment offers coal export services via the Port of Baltimore.

In Q2 2024, CONSOL Energy Inc.’s (NYSE:CEIX) total revenue reached $384 million, with the PAMC segment accounting for 5.8 million tons sold. However, in Q2, revenue saw a decline of 36% due to reduced export capacity caused by the collapse of the FSK Bridge. Although volumes dropped 9% compared to the prior year, strategic reallocation of export shipments mitigated the potential impact.

Net income for the quarter was $58 million, while adjusted EBITDA totaled $125 million. The drop in profitability was driven by increased transportation costs from rerouted shipments following the FSK Bridge collapse. Higher cash costs per ton, due to lower production volumes and inflation, also contributed.

In terms of liquidity, CONSOL Energy Inc. (NYSE:CEIX) maintained a strong balance sheet, reducing debt by $3 million and continuing share buybacks, with $13 million allocated in Q2. Additionally, free cash flow grew to $59 million, compared to $41 million in Q1 2024, driven by cost management and maintaining customer contracts.

CONSOL Energy’s 1.6% share price rise over the past month reflects optimism surrounding buybacks and recovery efforts after the Francis Scott Key Bridge collapse. However, a 3.18% YTD decline is due to concerns over export capacity and rising costs. Nevertheless, with recovery underway and improved production at Itmann, the company is poised for future gains. It is among the best coal stocks on our list.

As of Q2 2024, 30 hedge funds, holding a combined investment of $348.1 million, are bullish on the stock, according to Insider Monkey’s database.